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SRS funds - where to park into safe instruments?

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Old 03-03-2012, 01:40 PM   #1
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SRS funds - where to park into safe instruments?

anyone parked $ into SRS for purpose of tax planning?

I have already used some of my SRS to purchase Singpost for dividend yields.

Was hoping to use my remaining SRS to buy into safe S$-denominated money mkt funds which can reap higher returns than 0.05% pa.

Current DBS SRS interest rate is about 0.05% pa.
source: http://www.dbs.com/posb/others/additionali...ry/default.aspx


Am comparing among Philip SGD Money Mkt fund, LionGlobal SGD Money Mkt fund and UOB SGD Fund now..any opinions?
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Old 03-03-2012, 03:39 PM   #2
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There was a brief discussion of money market funds here: Emergency cash: where to put them?

I didn't like using the idea of MMFs for normal savings or emergency funds, but your case is different. I guess you just want to temporarily park your cash somewhere that yields more than the standard 0.05% until you invest it, and within the DBS SRS account options are limited.

Watch out for sales charges (2%?) and what holdings they have. To increase safety and liquidity MMFs should only be invested in short-term and high-grade securities and the manager should report the holdings regularly. The Phillip and LionGlobal funds seem OK. I find the UOB fund's high returns (>1% pa) and holdings fishy.

Another option is SGS 3-month T-bills that now yield about 0.33%. Ask DBS how you can invest your SRS funds in them.
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Old 03-03-2012, 05:05 PM   #3
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Buy local bank preference shares.
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Old 04-03-2012, 12:52 AM   #4
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Buy local bank preference shares.

This one still subject to risk of potential capital loss if I need to withdraw my SRS for e-use (touchwood)
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Old 04-03-2012, 01:20 AM   #5
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This one still subject to risk of potential capital loss if I need to withdraw my SRS for e-use (touchwood)
What is e-use??
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Old 04-03-2012, 07:40 AM   #6
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Emergency use
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