Money Market Funds

Money Market Fund (MMF) is a fund that basically invests bonds, bills, deposits that is low risk with low returns.

There are a number of MMFs in the market, including from Phillips, LionGlobal, Fundsupermart, etc. You can compare which is better, but to me, I think they are roughly the same, if not just a minor difference. I shall not compare and contrast since I feel it is economically not worth the time and effort.

I personally put in Phillips MMF, which I calculate that it gives 1.5%pa - 2%pa returns on the whole. This is better than most deposit rates currently, and the best thing is it is quite liquid. The price for this fund has so far only gone up, never has it ever gone down before. The price may stay the same for 2-3 days, after that it will rise by 0.0001 each time.

Given the current stock market volatility, it is quite dangerous to enter the stock market now. While waiting for oil prices to settle down, I park my money in Phillips MMF for relative higher returns which has high liquidity.

To start investing in Phillips MMF is very simple. You just have to sign up for a Phillips Capital trading account and a Phillips cash account. As long you deposit any money in the cash account, it will automatically buy into Phillips MMF. When you are ready to buy any share, just execute the deal, Phillips will automatically transfer your funds from MMF to fund your shares