Looking to grow your emergency cash funds, short-term savings or Supplementary Retirement Scheme (SRS) funds but prefer an alternative that has minimal risks and is highly accessible? Cash management accounts in Singapore may be the ideal solution for you since they are high in liquidity, low risk and do not impose lock-in periods. If you are new to cash management.
Minimum investment amount: $10,000
Types of funds Endowus offers: Funds from reputable fund managers such as Dimensional Fund Advisors and PIMCO. Full list of funds here.
Management fee: 0.60 per cent for first $200,000 or 0.40 per cent flat fee for any amount for CPF or SRS money
Endowus Cash Smart projected returns after all fees:
Core: 0.9 per cent to 1 per cent p.a.
Enhanced: 1.5 per cent to 1.7 per cent p.a.
What can you invest? Cash, CPF and SRS
Here are the pros and cons of using Endowus for your investment needs.
Pros of investing with Endowus
Cons of investing with Endowus
Access funds from respectable fund managers otherwise only available to institutional investors
Underlying funds risk profile comparison
Before we start, it is important for you to know more about the difference in the risk of the cash management products these funds invest in from cash funds, money market funds (MMF) to short-duration bond funds.
An important thing to note is that these cash management accounts are investment products, which means your capital is not guaranteed by Singapore Deposit Insurance Corporation (SDIC).
In the fund space, cash funds are the safest asset class amongst these three funds. For this asset class, the fund generally invests in a diversified portfolio safe institutional bank fixed deposits and treasury bills. the cash fund has the lowest downside risk compared to the other two funds.