When you sell your stocks, you may be left with some idle cash. This can be a good thing, as it gives you the flexibility to invest in new opportunities or to simply build up your emergency fund. However, if you just leave your cash sitting in your bank account, it will likely lose value over time due to inflation.

One way to prevent this is to invest your idle cash in a money market fund. A money market fund is a type of investment that is designed to preserve your principal and provide you with a steady stream of income. Money market funds typically invest in short-term, low-risk securities, such as government bonds and certificates of deposit. This makes them a relatively safer investment option.

The benefits of investing in a money market fund

There are a number of benefits to investing in a money market fund, including:

  • Higher interest rates: Money market funds typically offer higher interest rates. This is because they are able to invest in short-term, low-risk securities that generate higher yields.
  • Flexibility: You can access your funds at any time, without any lock-in periods. This means that you can use your money for unexpected expenses or to invest in other opportunities.
  • Convenience: You can manage your money market fund online or through a mobile app. This makes it easy to track your investments and make transactions.
  • Safety: Money market funds are considered to be a potentially safer investment option. They are typically backed by government securities or other high-quality assets.

How to choose a money market fund

When choosing a money market fund, it is important to compare the different options available and choose one that is right for you. Factors to consider include the interest rate, the fees, and the flexibility of the fund.

  • Interest rate: The interest rate is the most important factor to consider when choosing a money market fund. You want to choose a fund that offers a high-interest rate so that your money can earn as much as possible.
  • Fees: Money market funds typically have low fees. However, it is still important to compare the fees of different funds before you choose one.
  • Flexibility: You want to choose a fund that is flexible so that you can access your money when you need it. Some funds have lock-in periods, which means that you cannot access your money for a certain period of time.

Buying Money Market Funds through Moomoo Cash Plus

If you are an active stock investor in Singapore, moomoo should be a familiar name to you. Moomoo platform is one of the most powerful stock broker platforms and I recommend it for DIY stock trading and have written some articles about it. Click the link below to read more.

Moomoo Cash Plus is a cash management tool offered by moomoo Financial Singapore Pte. Ltd. It allows you to invest your idle cash in relatively safe monetary instruments such as money market funds.

Moomoo Cash Plus offers a number of benefits, including:

  • Higher interest: Moomoo Cash Plus currently offers a guaranteed return of 5.8*% p.a. for 30 days. (*refer to the details of the promotion in the next section)
  • Low-Cost Option: Moomoo Cash Plus has zero subscription and redemption fees.
  • Accessibility: You can start investing with as little as $0.01, making it ideal for small investments.
  • Flexibility: Moomoo Cash Plus offers high liquidity without any lock-in periods., allowing you to redeem your Cash Plus holdings almost instantly. Deposit and withdrawals to your bank account via FAST transfers are almost within minutes!
  • Convenience: You can manage your Moomoo Cash Plus holdings through the moomoo app, which is available on both iOS and Android devices and desktops as well.

What are the money market funds you can invest in Moomoo Cash Plus?

There are 2 money management funds available under Moomoo Cash Plus:

  • Fullerton SGD Cash Fund, and
  • CSOP USD Money Market Fund
Source: moomoo, returns as of August 1st, 2023, past performance is not indicative of future performance.

The Fullerton SGD Cash Fund is a money market fund that aims to provide investors with liquidity and a return that is comparable to the Singapore Dollar Banks Saving Deposits rate. The fund invests primarily in Singapore Dollar deposits with eligible financial institutions with varying terms of maturity of not more than 366 calendar days.

The CSOP USD Money Market Fund is a money market fund that aims to provide investors with liquidity and returns comparable to US Dollar deposit rates. The fund invests in high-quality, short-term debt securities, such as government and corporate bonds, commercial bills, and deposits with eligible financial institutions. In other words, CSOP USD Money Market Fund is an option for investors who are looking for a relatively safer and liquid way to earn a higher return on their USD cash.

By investing your idle cash in a money market fund, you can earn a steady stream of income, and have the flexibility to access your funds when you need them. If you are looking for a relatively safer way to invest your idle cash, Moomoo Cash Plus is a great option. You can learn more about Moomoo Cash Plus and open Moomoo SG universal account here.

How to enable moomoo cash plus

If you are a new user, here are the steps you can take to enable Moomoo cash plus:

Step 1: Click on the “Funds” tab at the bottom to access the button called “Cash Plus”.

Step 2: Click on the button called “Manage SmartSave”.

Step 3: Create an account and link to your bank. Wait 1-3 days for the account to be verified and you’re good to go! Singpass users can be as fast as 5 minutes.

Leverage on Moomoo SG National Day Campaign for 5.8% p.a. guaranteed returns for 30 days!

Moomoo SG is offering a National Day campaign promotion until August 31, 2023.

The promotion offers 5.8%* p.a. on any underlying funds of Moomoo Cash Plus. The maximum subscription amount is S$80,000 for each user, valid for 30 days. Moomoo SG will reimburse the returns to 5.8%* p.a. in cash rewards if the underlying fund returns are below 5.8% p.a. Investments involve risk.

In addition to the 5.8%* p.a., new users who sign up for a Moomoo SG universal account will get the following perks.

*T&Cs and other fees apply, refer to Moomoo’s campaign page for details.
All views expressed in the article are the independent opinions of the author Neither Moomoo Singapore nor its affiliates shall be liable for the content of the information provided. This advertisement has not been reviewed by the Monetary Authority of Singapore.

By the way, this National Campaign also applies to existing customers as well. But you have to fulfil the conditions below. Refer to this link for the National Day Special Offer for existing clients of Moomoo.

Final thoughts

With the market expecting the FED fund rate hike to peaking, T-bills yield falling and fixed deposit rates dropping. The good days of easy high-yield account is over. If you are an investor with idling cash or if you are looking for a relatively safer way to earn relatively higher interest, Moomoo Cash Plus is a great option.

Moreover, Moomoo SG offers S$0* commission on SG & US stocks, and the moomoo app provides real-time quotes, 24/ news and community discussion. For new Moomoo users, you will also receive free SEA stocks and Apple stocks if you meet the deposit and trade requirements.

Click here to sign up for a moomoo account to enjoy the promotion.


About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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