Money market funds have emerged as the dominant choice for investors in Singapore, capturing nearly 60% of the $6.3b fund inflows during the first half of 2025, according to the latest report by FundSingapore/Morningstar. The report, which covers the performance of unit trusts and investment-linked insurance products under the Central Provident Fund Investment Scheme (CPFIS), highlights a significant shift towards these funds amidst global market volatility.
In the second quarter of 2025, Singapore-focused equity and debt funds attracted investors seeking defensive, high-quality options. Arvind Subramanian, Senior Analyst at Morningstar, noted that many investors opted for the safety of money market funds, resulting in substantial inflows. The second quarter alone saw net inflows of $4.1 billion, an 86% increase from the previous quarter, with money market funds receiving $2.8b.
The CPFIS-included funds posted a return of 3.16% in Q2 2025, despite mixed performance from benchmark indices. Over a one-year period, CPFIS funds achieved a 6.07% gain, with investment-linked products and unit trusts showing solid growth.
Equity, fixed income, and allocation funds delivered strong returns across various time frames, with equity funds leading at 3.60% for the quarter. However, money market funds recorded modest gains of 0.62% over the same period.
The Singapore Fund Flow Report and the Performance & Risk Monitoring Report, both released quarterly, provide detailed insights into fund performance and investor trends. These reports are based on data from the Investment Management Association of Singapore, offering valuable information for investors navigating the current financial landscape.
“`
