After a wild 2024 for world markets, Singapore investors change the course. According to the new figures published by the Singapore monetary authority, the inflows in money market fund rose by more than 30%in the last quarter of last year. It is understandable that in view of the continuous geopolitical turbulence, fluctuating interest rates and chronic inflation problems, you may be valued where you can maintain your hard -earned money.
The reasons for the growth of the money market fund
Security is most likely at the top of your list of considerations while you make investment decisions. Money market For this reason, the funds are becoming increasingly popular. These funds usually invest in short-term securities with low risk such as premium company paper, deposit certificates and financing calculations. Their main sales arguments are liquidity and capital maintenance. In contrast to stocks or cryptocurrency, even in volatile times, money market instruments are typically stable.
Reports by Temasek Holdings, who postpone some of his portfolio allocations to more conservative products, may have attracted their attention. The trend indicates a more general attitude among experienced investors – the preservation of the value is just as crucial as the development of development, even if you do not completely switch to money market funds.
The attraction of consistent returns
Consistent returns can offer comfort when navigating the volatile markets. Money market funds often offer a moderate, consistent income, although they may not guarantee high yields. Local banks and asset management companies in Singapore currently offer a variety of money market products with annual returns of 3.5% and 4.2%. Even if it doesn't sound very impressive, it is still better than leaving your money on a standard savings account that only results in a return of 0.05%.
Many retail investors use platforms such as Endowus or FSMONE, with which they are most likely aware of. Both have found an increase in interest in their money market products, especially among pensioners and younger experts. The accessibility and the ability to withdraw money quickly and unpunished are important for these population groups.
Flexibility and accessibility are important
To benefit from the money market, you don't have to have a lot of money. You can now start with just $ 100 on many websites. This makes it easy for you to experiment and understand how these funds work. Another important factor that drives people like them to change is the flexibility to add money or to withdraw it without locking it.
A money market component can serve as a stabilizer, even if your investment portfolio is already more aggressive. Consider an emergency fund with greater earnings than for your bank savings. The flexibility enables you to breathe space, regardless of whether you save for an opportunity or a short -term goal.
An intelligent step in changes in installments
Since the interest continues to fluctuate, they may be wondering where they will go next. The global central banks continue to change their guidelines, and the US Federal Reserve has not committed to reduce interest rates in 2025. Money market funds benefit from increasing short -term interest rates in this scenario. The returns fluctuate faster compared to traditional bonds, so their return reflects the market.
For this reason, the investment in the money market is particularly tempting at the moment. If you invest in a money market fund, you can increase your prosperity and remain accessible at the same time if you keep it on the side while waiting for the “perfect” time to return to stocks or real estate.
Do you think it's right?
You don't have to completely change your investment approach. However, investing in a money market fund could offer further stability and security. This selection with little risk can help you maintain your financial goals, regardless of your level of experience with market declines or caution as a beginner investor.
Despite their lack of glamor, the money market funds have built up a lot of effort behind the scenes. Parking part of your portfolio here may be one of the best and stress -free decisions that you make at a time when unpredictability is the only thing that is guaranteed.
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