Singapore

Survey reveals that majority of Singaporeans invest in money market funds to hedge against rising inflation

Moomoo Financial Singapore and moomoo wealth management platform (“moomoo SG”), a subsidiary of Futu Holdings recently concluded a survey on how Singaporeans are tiding against inflation and the behaviours of different demographics when allocating their money to fund portfolios.

Primarily, the data shows that 66% of respondents are worried about the strong US dollar and high inflation, with 80.5% believing that investing is essential to hedge against inflation.

The survey distilled investment tools used by Singaporean investors to diversify their portfolios and revealed that money market funds remain the most sought-after tool, with the average Singaporean investor allocating 70% of their fund portfolios to them. The data showed a different appetite for funds across different age groups and genders. Females allocated a lesser portion of their fund portfolios towards money market funds compared to their male counterparts, while Gen X males and females had the highest allocations based on gender data at 86.2% and 75.8% respectively.

The data gleaned from the survey can be attributed to any one of three factors including a rise in the number of local investors looking for short-term investment horizon, a shift of appetite towards saferinvestments and the desire for higher liquidity. Accordingly, key factors for choosing funds are investment returns (76.4%), fees and handling charges (45.6%), reputation of the fund houses (42.6%) and liquidity (35.4%). Results also showed that energy, technology and ESG remained the most popular equity sectors amongst Singaporean funds investors.

Commenting on the investing landscape, Mr. Gavin Chia, Managing Director of moomoo Singapore, said “At moomoo SG we understand that Singaporeans are increasingly prioritising how to preserve wealth and retain their purchasing power. The unmet needs of the general public aspired us to launch moomoo Cash plus, powered by diverse money market funds, to provide liquidity and competitive returns compared to demand deposits. As a leading tech-driven super-app, we consistently equip Singaporeans with necessary tools and accessibility that will empower them to flourish at every step of their financial journey.”