Cash Plus: Grow your idle money every day
Cash Plus primarily invests in fixed deposits and cash markets, making it a low-barrier, stable-return, and low-risk investment tool.
Over the past year, Cash Plus has delivered an average return of over 3.5%. This means an investment of $100,000 could yield an annual return of more than $3,500.
If you're curious about Cash Plus but aren't sure what it is or how to invest, this article will clear things up for you.
What is Cash Plus?
Cash Plus is a money market fund that invests in low-risk, short-term financial products like certificates of deposit, Treasury bills, and commercial paper.
As a type of mutual fund, Cash Plus offers individual investors a way to participate in the money market, which is typically reserved for banks and large financial institutions.
Pros of Cash Plus:
Low Risk: Invests in high-credit-rated products, ensuring strong repayment ability.
Stable Returns: Provides steady value growth.
Daily Returns: Earns on a daily basis, even on weekends.
Cons of Cash Plus:
No Capital Appreciation: Doesn't increase in value.
Interest Rate Sensitivity: Returns may drop if interest rates fall.
No Government Insurance: Not covered by government deposit insurance.
Who might be interested in Cash Plus?
Cash Plus is a low-risk, highly liquid fund, making it suitable for almost all investors. It's commonly used in two scenarios:
Conservative investors seeking relatively higher returns.
Investors who want to manage their idle cash.
Things to know before investing
Before investing in Cash Plus, investors should understand the following:
I. Currency options
Moomoo Cash Plus offers funds in Malaysian Ringgit (MYR) and US Dollars (USD). As of mid-August 2024, the USD fund has a return rate close to 5%, higher than the MYR fund.
However, investing in the USD fund involves additional risks, such as exchange rate fluctuations and changes in US interest rates.
There may also be extra costs for currency conversion or USD financing.
II. Performance
There are two ways to understand the fund's historical returns.
Historical Returns: Investors can check the returns over different periods—monthly, quarterly, or annually.
Daily Returns: See the potential daily returns if you had invested RM10,000 in the past. This helps investors visualize potential earnings.
Note: Cash Plus returns are not fixed and are influenced by market interest rates. When market rates drop, Cash Plus returns may also decrease.
III. Trading rules
Before investing, investors should understand the rules for buying, redeeming, and any associated fees to avoid misunderstandings.
IV. Holdings
Understanding fund holdings helps investors assess the sources of returns and potential risks.
In the Analysis> Portfolio section, you can view the fund's holdings, including asset types, ratings, and maturities.
How to buy Cash Plus on moomoo
On moomoo, you can buy Cash Plus starting from RM0.01, and redeem it anytime for trading stocks.
If you're interested, click the link below to learn more.
How to Subscribe Cash Plus on moomoo
Explore your Cash Plus on moomoo now!
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more