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Super2047
post Apr 14 2023, 05:11 PM

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Joined: Dec 2021
QUOTE(TOS @ Mar 3 2023, 09:16 PM)
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Readers should beware of the law of one price... that with higher returns, there's presence of unspoken risks, no matter how small or insignificant they are.

With MMFs, readers ought to monitor the health of the fund's counterparties from time to time (Singapore MMFs are usually transparent about this as they will list them down in the factsheets). Readers should at the very least know who borrows their money.
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I invested in MooMoo CashPlus before and we can see where they actually invested our money. In Malaysia, i went in to KDI website and they have no such information. The only thing they put big big is their return, but if who they invested defaulted on the money, then investor also will lose money. Seems like many people treat MMF as FD, but in actual FD carry no risk, but MMF do.

 

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