In today’s climate of fluctuating interest rates coupled with economic uncertainties, Money Market Funds (MMFs) have gained popularity among Singaporean investors as a flexible, low-risk investment option for liquidity management and inflation hedging.
But what exactly are MMFs, and how do you choose the right one to invest in?
In this article, we’ll break down what MMFs are, what to consider when selecting one, as well as a comparison of some of the top performing MMFs available in Singapore.
Table of Contents
- What are Money Market Funds?
- Key Considerations When Selecting Money Market Funds
- Comparing Money Market Funds in Singapore
- Bottom Line
- Get Started with Syfe Cash+ Flexi (SGD)
What are Money Market Funds?
MMFs are a type of mutual fund that invests in short-term, high-quality debt instruments and cash equivalent securities. In Singapore’s context, these include Singapore government t-bills, MAS bills, certificate of deposits, commercial papers and bank fixed deposits.
They are designed to preserve capital while generating modest, stable returns. This relatively low-risk investment option is ideal for investors looking to diversify their portfolios, park idle cash temporarily, or manage liquidity without locking in funds for extensive periods.
Key Considerations When Selecting Money Market Funds
With various financial institutions offering MMFs, here are some factors to consider when selecting one to invest in.
- Asset Quality
- Review the average credit rating of the MMF. This reflects the quality of the fund’s underlying assets and its capability to maintain a stable net asset value. The higher the credit rating, the lower the risk of losses from defaults or rate volatility.
- Review the average credit rating of the MMF. This reflects the quality of the fund’s underlying assets and its capability to maintain a stable net asset value. The higher the credit rating, the lower the risk of losses from defaults or rate volatility.
- Fund Size and Weighted Duration
- Look into the fund’s size. Larger funds tend to be better diversified and benefit from economies of scale.
- Compare the fund’s weighted duration. This represents how long it takes for its short-term assets to mature. Longer weighted duration could potentially drive higher returns, but it could present interest rate risks should you need to sell them before maturity.
- Gross Yield
- Assess current and historical performance. While past results do not guarantee future yields, it still provides valuable insights into the fund’s consistency. Keep in mind that since MMFs use short-term instruments, its yields may be more sensitive to interest rate fluctuations.
- Assess current and historical performance. While past results do not guarantee future yields, it still provides valuable insights into the fund’s consistency. Keep in mind that since MMFs use short-term instruments, its yields may be more sensitive to interest rate fluctuations.
- Fees
- Check for the fund’s management level fees and other fees like administration or withdrawal. These could affect your net returns.
Comparing Money Market Funds in Singapore
Now that you have a clearer understanding of what MMFs are and some key factors to consider when choosing one to invest in, let’s explore some of the top performing MMFs available in Singapore.
- LionGlobal SGD Money Market Fund
[Underlying fund in Syfe Cash+ Flexi (SGD)]- Objective: Provide returns comparable to SGD short-term deposits while maintaining liquidity and risk
- Invests in: High quality, short-term Singapore government and corporate bonds, commercial bills and deposits with financial institutions
- Minimum initial investment sum: SGD 1,000 (Share Class A and M), SGD 1,000,000 (Share Class L)
- LionGlobal SGD Enhanced Liquidity Fund Class A SGD (Acc)
[Underlying fund in Syfe Cash+ Flexi (SGD)]- Objective: Preserve capital, deliver enhanced returns and provide high level of liquidity
- Invests in: Broadly diversified portfolio of high quality debt instruments across varying industry sectors
- Minimum initial investment sum: SGD 100 (Share Class A), SGD 1,000,000 (Share Class I)
- Fullerton SGD Cash Fund
- Objective: Provide liquidity and returns that are comparable to the Singapore Dollar Banks Saving Deposits rate
- Invests in: Short-term investment grade SGD deposits with financial institutions and Singapore government related bills
- Minimum initial investment sum: None
- Phillip Money Market Fund
- Objective: Preserve principal value, maintain high liquidity and produce returns comparable to Singapore Dollar savings deposits
- Invests in: Short-term, high quality money market instruments and debt securities across varying tenures
- Minimum initial investment sum: SGD 100
- United SGD Money Market Fund
- Objective: Provide a return comparable to Singapore Dollar short-term deposits
- Invests in: Liquid and high quality, short-term debt securities and money market instruments
- Minimum initial investment sum: SGD 1,000 (Share Class A1 and D), SGD 1,000,000 (Share Class B)
- Maybank Money Market Fund Class A (Acc)
- Objective: Preserve capital value and maintain high degree of liquidity while looking to provide a return which is comparable to short-term time deposits
- Invests in: Deposits with financial institutions, money market instruments and debt securities
- Minimum initial investment sum: SGD 1,000
| MMFs | Asset Quality | Fund Size (SGD) | Weight Duration (Years) | Gross Yield (Projected) | Management Fees (p.a.) |
|---|---|---|---|---|---|
| LionGlobal SGD Money Market Fund | A+ | 2198.3 M | 0.32 | 3.13%1 | 0.10% – 0.25% |
| LionGlobal SGD Enhanced Liquidity Fund Class A SGD (Acc) | A+ | 1673.5 M | 0.36 | 3.13%1 | 0.25% – 0.35% |
| Fullerton SGD Cash Fund | – | 8255.5 M | 60% < 4 weeks | 2.6%2 | 0.16% |
| Phillip Money Market Fund | A | 2114 M | 0.15 | 2.49%3 | 0.45% |
| United SGD Money Market Fund | AAA | 535.76 M | 0.11 | 2.26%1 | 0.15% – 0.25% |
| Maybank Money Market Fund Class A (Acc) | AA | 16.6 M | 0.43 | 3.03%1 | 0.3% |
1 Weighted yield to maturity
2 5 Days rolling average
3 30-day annualised return
Bottom Line
MMFs are a good fit for investors looking for a combination of stability and liquidity. While it is important to be mindful that MMFs are not insured under the Singapore Deposit Insurance Corporation Limited (SDIC) schemes, MMFs are professionally managed and typically invested in high-quality short-term securities. This could play a valuable role in your broader investment portfolio strategy.
Get Started with Syfe Cash+ Flexi (SGD)
Ready to invest in MMFs? You can now easily do so with Syfe Cash+ Flexi (SGD).
Constructed with institutional-grade funds from Lion Global Investors, Syfe Cash+ Flexi (SGD) offers projected returns of up to 2.9% (after all fees, as of 11 Jun 2025). The portfolio focuses on higher credit quality MMFs to minimise volatility, resulting in fewer negative weeks and lower maximum weekly drawdowns.
With no minimum investment, no minimum balance required and no lock-in periods, Syfe Cash+ Flexi (SGD) provides a much more cost-efficient alternative to purchasing MMFs on your own. This ultimately means having the flexibility to make unlimited fund transfers and withdrawals in a way that works best for you.
What’s more, you can now use your Supplementary Retirement Scheme (SRS) funds to invest in Syfe Cash+ Flexi (SGD), which is a great way for you to save on taxes while making your idle money work.
You must be logged in to post a comment.