@minmikrub Not much. Money market funds in general are considered very safe asset classes. Same category as gov bonds.
In my whole 15 years of trading I've only remembered once when the money market collapsed. That's during 2008 when bearsterns went bankrupt taking along with them the whole financial market lol.
@thenarrowpath Correct me if I’m wrong… but looking at it, TnG and FSMOne seems to be the best option (less conditions, easy ti liquidate, relatively high i.r.). Next I’ll probably consider stashaway but for longer term. Not sure how the rebate works though. Anyone care to explain?
The math on the projected rate of returns is quite straightforward: StashAway Simple™ projected returns are the sum of the amortised yield from the underlying fund, minus fees charged by the underlying fund managers, plus any rebates. Eastspring Investments Berhad rebates StashAway, and we distribute this full rebate to you when we receive it on a quarterly basis.
The last sentence: we distribute this full rebate to you when we receive it on a quarterly basis.
In simple terms, they are holding a portion of your interest to distribute later, to make up the projected 4.1%. They too have the right to lower the projected rate before distribution takes place.
Take Q1 2023 for example, the base return is 3.37%. Meaning from Jan 2023 ~ Mar 2023, you are only getting 3.37%. The remaining interest are held until mid of April to be distributed, to make up 4.1%. It is also within their right to announce a lower rate last minute as well, they have stated it clearly in T&C.
@thenarrowpath Hi OP, don’t mind to make comparison again in 2024? I believe all of the return rates are different now.. Would be great to share new updated calculation with others. But don’t have to if you don’t want. Just curious how other market has been doing now.
