(1) LionGlobal SGD Enhanced Liquidity Fund. This fund is a super steady performer. Its performance chart is a nice upwards trending slope; no sudden downspikes (especially during March 2020) compared to many other similar funds available in the market. Currently, the projected yield is around 1.2%.
(2) Singapore Savings Bonds. This should be any conversative person favourite instrument as it is virtually risk-free: AAA grade bond, redeemable at any time without any penalty. A limitation is the maximum amount is $200,000, which has improved from the previous $100,000 limit. Considering the current yield is around 2%, it is getting more attractive, especially with the current rising interest rate environment.
(3) Cash management accounts by robo advisors. Tiger's Cash Plus is one such cash management account for your spare cash. One point to note is that the underlying funds in a safe cash management account should always be limited to money market funds. Bond funds, whether short duration, Asian or US, can be risky and turn negative, especially with the current interest rate hike.
(4) Use some (or most) of your returns and DCA into equities. You can DCA small amounts (eg. $1) into some robo advisors. In this way, you can participate in the high risk equity markets without risking your capital. We can call this, turning into aggressive using returns from being defensive. Moreover, most robo advisors offer sign up bonus (cash and/or shares), which can further cushion any potential losses.
Happy investing!
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