Is the Fullerton SGD Cash Fund safe?
While the primary objective of the cash management fund is to achieve a return that is comparable to the SGD savings deposit rate, there is effectively still a chance that there could be a negative return in a single day in some extreme cases.
Investments into the Fullerton Cash Fund are not insured under Singapore Deposit Insurance Corporation Limited (SDIC).
Lastly, the returns of the Fullerton SGD Cash Fund may decline should interest rates start falling, as the bulk of the funds do not lock up the interest rates for more than a month. For example, we have seen that the 10-year return of the fund was just 1.10% per annum as of 31 July 2023.
As such, you may face re-investment risks should interest rates decline and you are not able to find investment opportunities that offer a return that meet your objectives.
Is the Fullerton SGD Cash Fund better than fixed deposit?
Based on the 7-day annualised return of 3.7698% as of 14 September 2023, the Fullerton SGD Cash Fund offers a better return compared to the best 12-month fixed deposit rate of 3.58% per annum in September 2023.
这个是不是用短期和长期比较？ 7天比和1年比，除了短暂的窗口以外，1个月，3个月或更长期都不高啊
