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Old 16-05-2018, 05:55 AM   #1
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Money Market Fund

Hi all, I chanced upon Phillip Money Market Fund (PMMF).
Wondering if anyone could give me some insights, eg. is this an appropriate investment instrument for beginners?

And also, could someone kindly explain more into details what Money Market Fund actually does?
Tried looking for more information, either I came up empty or I am having difficulties in understanding :|

As far as I can understand, it is more of putting money into the account, and have the amount invested/ managed by Philip (feel free to correct if I am wrong on that..), similar to a fixed savings account?

Looking forward to hear any replies.

Thanks!
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Old 16-05-2018, 08:05 AM   #2
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They invest in high grade short term bonds and fixed deposits. Returns are around 1%? if i remember correctly. It is not capital guaranteed.

Most people use it passively; to earn some returns while the money is sitting in their poems account. Their main objective is to ultimately invest that sum of money when the time is '' right ''.

You are better off putting your money into high yielding bank savings account.

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Last edited by Wishdom; 16-05-2018 at 08:08 AM..
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Old 16-05-2018, 08:48 AM   #3
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Moreover, it has a 0.45% annual management fee. There is neither deposit insurance nor any Singapore government guarantee, so there's some principal risk. (It does invest in high credit rating short-term instruments, but there's still some risk in that.)

Certainly you'll want to max out your Singapore Savings Bond allocation before considering this fund. The SSBs are much more attractive. If you anticipate parking money for a year then ordinary T-Bills, which are auctioned quarterly, are also more attractive. Even bank fixed deposits are often more attractive, assuming you can live with the particular tenor(s) and, preferably (but not strictly required) you stay within deposit insurance limits. If you're investing via a U.S. broker (e.g. Interactive Brokers, Schwab) then U.S. T-Bills are available in tenors as short as 4 weeks in U.S. dollars (of course), and they're auctioned frequently -- practically every week. There are also excellent U.S. dollar federal government money market funds.

I agree with Wishdom that really the only useful purpose for this particular fund is as a convenient place to park "hot money," specifically Singapore dollars that you'll surely invest in something else, denominated in Singapore dollars, within days or a very few weeks. It's not for the "beginning investor" or even for most "advanced" investors -- it's a pretty narrow use.
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Old 16-05-2018, 09:57 AM   #4
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The best money market fund is LionGlobal SGD Money Market Fund. It's based on 1-month Sibor - 0.25% Management fee, so you get about 1.13% yield. Treat it as a parking account to intra-switch into/from other LionGlobal funds with no lag.
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Old 16-05-2018, 10:31 AM   #5
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That is a better SGD money market fund, agreed. It serves the same narrow purpose: as a short-term parking place for "hot money" that will surely be invested in something else Singapore dollar-denominated, soon.
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Old 16-05-2018, 11:54 AM   #6
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The best money market fund is LionGlobal SGD Money Market Fund. It's based on 1-month Sibor - 0.25% Management fee, so you get about 1.13% yield. Treat it as a parking account to intra-switch into/from other LionGlobal funds with no lag.
There is (almost) no cost to park your money with POEMS Money Market Fund which pays about 1.02% interests currently, and you can transfer in/out anytime to and from your POEMS a/c.

But how to park your money with LionGlobal SGD Money Market Fund, need to buy in and sell out with cost?

Last edited by zumaba; 16-05-2018 at 11:57 AM..
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Old 16-05-2018, 12:17 PM   #7
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I have a quarter of my asset parked with LionGlobal through UOB Kay Hian as they don't charge platform fee like FSM.

It doesn't matter which LionGlobal funds you have at any point of time, as long as the money is with LionGlobal, you can switch between the dozens of funds available at any time with no cost, and the switching is instant, so you get today's prices for switch-out fund and switch-in fund at the same time. So if you switch between their money market fund and their equity funds, you are effectively getting unlimited free trades - trading unit trusts like stocks.

There is (almost) no cost to park your money with POEMS Money Market Fund which pays about 1.02% interests currently, and you can transfer in/out anytime to and from your POEMS a/c.

But how to park your money with LionGlobal SGD Money Market Fund, need to buy in and sell out with cost?

Last edited by Solano; 16-05-2018 at 12:22 PM..
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Old 16-05-2018, 03:09 PM   #8
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The LionGlobal SGD Money Market Fund currently has no sales charge and no redemption fee. Any broker in Singapore (and perhaps some others) should be able to get you there and back.
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Old 16-05-2018, 03:45 PM   #9
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@melvados
CIMB Fastsaver. Flat 1%.
Higher than Philips which is 0.8 to 0.9%.

Better liquidity too as you can FAST anytime you want.
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Old 16-05-2018, 03:46 PM   #10
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CIMB Fastsaver. Flat 1%.
Not exactly. That's only on the first $50,000. If you want a flat interest rate that's StarSaver, at 0.8%.
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Old 16-05-2018, 04:00 PM   #11
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FAST has a limit of $50k per day. What if I were to buy $100k of unit trusts in one shot?


@melvados
CIMB Fastsaver. Flat 1%.
Higher than Philips which is 0.8 to 0.9%.

Better liquidity too as you can FAST anytime you want.
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Old 16-05-2018, 04:43 PM   #12
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Most banks already upgraded to $200k FAST limit. Some banks still in the midst of upgrading.
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Old 16-05-2018, 09:57 PM   #13
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Really? My UOB One account limits to 20k FAST, and my CIMB Fastsaver limits to 50k FAST. Who are your "most banks" refer to?

Most banks already upgraded to $200k FAST limit. Some banks still in the midst of upgrading.
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Old 16-05-2018, 11:15 PM   #14
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Really? My UOB One account limits to 20k FAST, and my CIMB Fastsaver limits to 50k FAST. Who are your "most banks" refer to?
SCB and DBS both can.

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Old 17-05-2018, 12:47 AM   #15
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for LionGlobal funds, you still have to calculate units to sell & buy manually.

with PMMF, it will automatically deduct & deposit funds whenever you buy or sell stocks. it's so much convenient

I have a quarter of my asset parked with LionGlobal through UOB Kay Hian as they don't charge platform fee like FSM.

It doesn't matter which LionGlobal funds you have at any point of time, as long as the money is with LionGlobal, you can switch between the dozens of funds available at any time with no cost, and the switching is instant, so you get today's prices for switch-out fund and switch-in fund at the same time. So if you switch between their money market fund and their equity funds, you are effectively getting unlimited free trades - trading unit trusts like stocks.
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