Money Market Funds in Singapore (2026): Yields, Risks and How to Buy

A money market fund (MMF) is a unit trust that pools investors' cash and lends it out for very short periods — to the government through MAS Bills and T-bills, to banks through deposits, and to high-grade companies through commercial paper. In Singapore, SGD money market funds returned roughly 1.0–1.4% over the year to October 2026, can usually be redeemed in one to three business days, and are low-risk but neither capital-guaranteed nor covered by SDIC deposit insurance.

That makes them a place for cash you may need at short notice, not a substitute for an insured deposit. And in late 2026 there is a twist most guides miss: after the September–October rise in short-term rates, six-month T-bills (1.95%), the best six-month fixed deposits (about 2.0%) and the first-year rate on the December 2026 Singapore Savings Bond (1.83%) all pay more than a typical SGD money market fund. With an MMF you are paying for flexibility, not buying the highest yield.

This guide covers what money market funds hold, the MAS rules behind them, what they pay right now and how to read the yield figures platforms quote, how they compare with T-bills, fixed deposits, SSBs and savings accounts, the main SGD and USD funds, how to buy them, and the risks that are real.

What is a money market fund?

A money market fund is a professionally managed pool of short-term debt. You buy units; the fund invests the money in instruments that mature in days or months, earns interest on them, deducts its fees and passes the rest back to you through a rising unit price. Its stated aim is usually to preserve capital, stay liquid and earn something close to short-term deposit rates.

Money market funds have become one of Singapore's most popular fund types. Industry figures from the Investment Management Association of Singapore show money market funds, including money market ETFs, took about 60% of the S$6.3 billion of net inflows into all Singapore fund types in the first half of 2025. Flows cooled in early 2026, when investors moved back into equity and allocation funds: the capital-preservation category, which includes money market funds, took in a net S$374 million in the first quarter and held about S$29.8 billion.

What an SGD money market fund holds

A typical SGD money market fund holds three kinds of assets:

• Singapore government and central-bank paper — MAS Bills and Singapore Government T-bills, the lowest-risk part of the portfolio.
• Bank deposits — placed with banks at negotiated rates, often a large share of the fund. Phillip SGD Money Market Fund, for example, held about 94% in cash and deposits in its latest published allocation.
• Short-term corporate and bank paper — commercial paper and short bonds from highly rated issuers, which add a little yield and a little credit risk.

The mix varies by fund. Some stay almost entirely in deposits and government bills; others hold more bonds and money market securities. LionGlobal SGD Money Market Fund, for instance, reported a weighted credit rating of AA and its largest holdings in short-term MAS Bills as of June 2026. The factsheet's asset allocation is the first thing to read.

The MAS rules that keep MMFs short and liquid

Money market funds offered to the public in Singapore must follow investment guidelines in Appendix 2 of MAS's Code on Collective Investment Schemes. Since MAS tightened them in 2018, a short-term money market fund must:

Several popular guides put the weekly liquidity requirement at 30%; MAS's 2018 rules set it at 20%. MAS has since added expectations on the bank deposits that money market funds place with financial institutions, to strengthen their liquidity further; fund managers must comply by 2 January 2027.

Is a money market fund a unit trust?

Yes. In Singapore a money market fund is a type of unit trust (or, for listed versions, an ETF) that follows the stricter money-market rules above. "Money market fund vs unit trust" is really a comparison between a money market fund and other unit trusts — bond, equity or balanced funds — which take far more interest-rate, credit or market risk.

It is also not the same as a US "money market account", which is a type of bank deposit account. A Singapore money market fund is an investment, not a deposit.

How much do money market funds pay right now?

As of early November 2026, the main SGD money market funds had returned about 1.0–1.4% over the past year after fund fees, and USD money market funds about 3.8% in US dollar terms. Endowus put the net yields of the SGD cash funds on its platform at 0.90–1.68% a year and its USD cash funds at 3.48–3.82% as of 2 October 2026, after fund and platform fees.

Returns are net of fund fees but before any platform fee, and are not guaranteed. Share classes of the same fund carry different fees and returns. Sources: fund factsheets and fund-platform data (Endowus, POEMS, Beansprout, FSMOne, iFAST), October–November 2026.

On S$10,000 left in a fund returning 1.3% a year after fees, you would earn about S$130 over twelve months, before any platform fee. That figure will move with short-term interest rates; it is not locked in the way a fixed deposit or T-bill rate is.

How to read MMF yield claims

A large part of the confusion about money market funds comes from the fact that providers quote different numbers, sometimes on the same page. The four you will meet most often:

Kilde's view. When comparing cash options, line up the same measure — ideally the trailing return after all fees for what you actually earned, and a net 7-day yield for where the fund is right now. A gross yield to maturity on one product set against a net trailing return on another can make a 0.3–0.5 percentage-point difference look like an edge that isn't there.

{{cta-component}}

Money market funds vs T-bills, fixed deposits, SSBs and savings accounts

Money market funds win on flexibility and lose on certainty. As of early November 2026 they also pay less than the government and bank options that lock your money for a period.

Choose a money market fund for cash you may need within weeks — an emergency buffer, money waiting for a property payment or a planned investment. Choose T-bills or a fixed deposit for money you are sure you will not touch for six to twelve months. Choose Singapore Savings Bonds when you want a government guarantee and still need the option to exit in any month, and SGS bonds when you want to lock in a government rate for several years. For the full range of capital-preserving options, see our guide to safe and low-risk investments in Singapore.

Kilde's view. The T-bill and fixed-deposit premium over money market funds in late 2026 is a reason to split cash by when you will need it, not a reason to move all of it. The fund's daily liquidity is what you are paying for; if you would never use it, a locked product pays more.

Best money market funds in Singapore

The largest SGD money market funds for individual investors are Fullerton SGD Cash Fund, LionGlobal SGD Money Market Fund, Phillip SGD Money Market Fund and United SGD Money Market Fund. "Best" depends on what you value — the table above shows they differ more in fees and holdings than in risk.

• Fullerton SGD Cash Fund — the largest, at about S$9.7 billion. Aims for returns comparable to Singapore dollar bank savings deposit rates; invests mainly in bank deposits and government bills. Cash and SRS; regular savings plans from S$100 a month on some platforms.
• LionGlobal SGD Money Market Fund — around S$3.5 billion, one of the oldest (launched 1999). Holds more money market securities and short bonds alongside deposits; weighted credit rating AA as of mid-2026. Cash and SRS.
• Phillip SGD Money Market Fund — about S$2.3 billion, launched 2001, mostly in deposits. The retail Class A carries a 0.48% expense ratio, against 0.26% for Class I and 0.08% for Class F (both for investments of S$50,000 or more), so the class you buy matters.
• United SGD Money Market Fund — about S$0.6 billion, managed by UOB Asset Management. States in its fund materials that it keeps at least 10% of NAV in daily-maturing and 20% in weekly-maturing assets, the MAS minimums.

Things to compare when choosing: the total expense ratio of the share class you can actually buy, the asset mix (deposits and government bills versus corporate paper), the weighted average maturity, the redemption time on your platform, and whether you can pay with SRS money.

SGD vs USD money market funds

USD money market funds pay more because US short-term rates are higher than Singapore's: about 3.7–3.8% over the year to late October 2026 in US dollars, against roughly 1.0–1.4% for SGD funds. The difference is currency risk. If your spending is in Singapore dollars, a fall in the US dollar against the SGD can wipe out the extra yield.

The effect shows up in the numbers. Measured in US dollars, Fullerton USD Cash Fund's maximum drawdown was close to zero (–0.06% on Endowus's data to October 2026). Shown in Singapore dollars on iFAST's factsheet, the CSOP USD Money Market Fund had a one-year maximum drawdown of –2.92% — the currency, not the fund, did that.

A USD money market fund makes most sense for money that is already in US dollars and will be spent or invested in US dollars — proceeds from US investments, USD income, or cash waiting for a USD-denominated investment.

Money market ETFs on SGX

A few money market funds trade on SGX as ETFs, such as the Phillip SGD Money Market ETF, launched in 2020 and tracking a 3-month SGD interest-rate index. You buy and sell them through a brokerage account like a share, so you pay brokerage commissions and the bid-ask spread, and the price can move slightly away from the fund's value during the day. They suit investors who already hold a brokerage account and want to park cash between trades.

How to buy a money market fund in Singapore

There are three main routes: a cash management product from a robo-adviser or app, a fund platform or brokerage where you choose the fund yourself, or the fund manager directly.

Cash management accounts

Robo-advisers and investment apps — Endowus, StashAway, Syfe, Tiger, moomoo and others — package one or more money market funds into a cash product. They are the simplest route: low or no minimums, a single balance to track, and quick withdrawals. Some also mix in short-duration bond funds to raise the projected yield, which adds interest-rate and credit risk. Before choosing one, check which funds are inside it and what the platform charges on top of the funds' own fees. Our comparison of Endowus, Syfe and StashAway covers how those three platforms differ, and our reviews of Syfe and StashAway look at each in more detail.

Brokerages and fund platforms

Fund platforms and brokerages such as FSMOne, POEMS, iFAST and DollarDex let you pick a specific money market fund and share class, check its factsheet and buy it like any other unit trust. You get more control and can avoid an extra wrapper fee, but you choose and monitor the fund yourself. Some offer automatic sweeps of idle brokerage cash into a money market fund. Direct subscription with a fund manager is also possible but usually comes with higher minimums and paperwork.

What the wrapper costs you: a worked example

Fees take a large bite when the underlying yield is low. The example below uses an illustrative 1.50% gross yield on S$50,000 for one year:

Illustrative figures: the gross yield and platform fee are assumptions for comparison, not quotes for any specific product.

The gap between the cheapest and the most expensive route here is S$140 a year, close to a quarter of the return. At money-market yields, the fee line matters more than small differences between funds.

{{cta-component}}

Can you lose money in a money market fund?

Yes, though large losses are rare. A money market fund is an investment, not a deposit: it is not guaranteed by the manager, the bank or the government, and it is not covered by SDIC deposit insurance. Your units are held by an independent trustee, separate from the fund manager, which protects you if the manager fails but does not protect the value of the investments.

Three risks are worth understanding:

• Credit risk. If an issuer the fund lends to defaults, the fund's value drops. The best-known case is the US Reserve Primary Fund, which wrote off its Lehman Brothers paper in September 2008 and cut its unit price from US$1.00 to US$0.97 — "breaking the buck". Investors pulled money from money market funds across the US, and the US authorities had to step in.
• Liquidity stress. In March 2020, heavy redemptions from US prime money market funds again led the Federal Reserve to launch an emergency liquidity facility on 18 March 2020. Singapore's daily and weekly liquidity minimums exist to make that kind of run less likely.
• Falling rates. Yields follow short-term interest rates down. Money market funds are not a way to lock in today's rate.

Singapore money market funds work differently from the classic US model. Most are accumulating funds with a floating unit price that rises slowly over time — LionGlobal's units trade near S$1.49 and Phillip's near S$1.36 — rather than a price held at S$1.00. So a loss would show up as a dip in the unit price rather than a "broken buck". Such dips have been small: United SGD Money Market Fund's largest peak-to-trough fall was –0.18% on Endowus's data, and FSMOne showed no drawdown for Phillip SGD Money Market Fund over one and three years.

Kilde's view. The bigger practical risk is buying something labelled "cash" that is not a money market fund. Some cash products include short-duration bond funds to lift the projected yield. UOB Asset Management's United SGD Fund — a short-term bond fund, not a money market fund, which makes up half of Endowus's Cash Smart Enhanced portfolio — fell 1.7% in August and another 0.5% in September 2026, and was down about 1.6% over the year to mid-October. Read the list of underlying funds, not just the product name.

Fees, taxes and withdrawal times

Fees. Money market funds charge an annual management fee or total expense ratio, usually between about 0.15% and 0.50%, taken out of the fund's value daily, so published returns are already net of it. Platforms may add their own annual fee. Most funds have no sales or redemption charge, but check the product highlights sheet.

Taxes. Singapore does not tax capital gains, and distributions that individuals receive directly from unit trusts authorised under the Securities and Futures Act are tax-exempt unless they come from a trade, business or partnership. Most SGD money market funds accumulate their income in the unit price, so there is usually nothing to declare.

Withdrawal times. Redemptions are typically paid one to three business days after your request, depending on the fund and the platform; requests after the daily cut-off move to the next business day. Weekends and public holidays don't count, so money requested on a Friday afternoon may arrive on Tuesday or Wednesday. Some platforms offer faster partial withdrawals.

{{cta-component}}

Where money market funds fit, and what sits beyond them

Money market funds belong in the cash part of a portfolio: emergency savings, money with a known short-term use, and cash waiting to be invested. They are built to preserve capital and stay liquid, which is why their return tracks short-term interest rates and no more.

A simple way to think about the options is a ladder, where each step up asks you to accept more of one risk in exchange for more expected return:

The middle steps of this ladder — government paper, bond funds and corporate bonds — are covered together in our guide to fixed income in Singapore, with today's yields for each.

Private credit sits several steps above money market funds and is not a cash substitute. On Kilde, a MAS-licensed platform open only to accredited and institutional investors, investments run for 3 to 36 months and have returned an average of 12.46% net over the past 12 months, with no investor capital lost since launch in 2021 — past performance that does not guarantee future results. Every Kilde investment carries credit and liquidity risk that a money market fund is designed to avoid. Our guide to private credit investing in Singapore explains how the asset class works and what can go wrong.

Kilde's view. Keep the two jobs separate. Cash you may need in the next few months belongs in instruments like money market funds, T-bills or deposits, whatever they pay. Only money you can commit for the full term of an investment, and can afford to see at risk, should move up the ladder for income. For accredited investors with surplus cash that has no near-term use, our page on putting idle cash to work explains how Kilde fits that second job, and our Kilde vs Chocolate Finance comparison sets a cash-management app beside private credit.

Sources

{{sources}}