Singapore market has good chance to do well in the next 1-2 years. However, volatility remains in the short term. In the previous month, Singapore's stock market fell, but at a less extent than most of its regional peers. Blue chip stocks are able to give 3.5% - 4% dividends, similar to govt bonds yield. This type of manner has historically resulted in good performance in the mid-term.
However do not buy aggressively at the moment. Keep at least 50% in safe assets like deposits, structured notes or money market instruments, until oil price soften to $120 per barrel.
I personally recommend a regular savings plan (RSP) into Singapore equity funds. Do it monthly in a consistent manner to tap on the benefits of dollar cost averaging. You can look into Schroders, Aberdeen or LionGlobal Singapore funds. In this way, there's good chance to achieve good returns in the next few years.
On the other hand, SGD has been recently appreciating in view of the inflationary pressure. Though MAS said they do not expect any changes until later this year, continous strengthening is expected.
Showing posts with label Unit Trust. Show all posts
Showing posts with label Unit Trust. Show all posts
Thursday, August 7, 2008
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
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
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