Money market funds offer many advantages for novices learning how to invest. They are also popular for invidivuals who prefer to keep their savings safe from various investment risks. Although studies show that younger Filipinos still lack knowledge when it comes to investments, data shows that the money market has high potential to increase one’s savings over time.

Money market funds in the Philippines are short-term, low-risk securities which are ideal for investment newbies or those who want to park their cash and earn returns that are higher than traditional bank accounts. These funds are suited for those who want quick access to their funds, such as young professionals, small business owners or even retirees who need to manage their cash flow efficiently.  Money market funds provide both security and accessibility, as these are placed in low-risk type assets which provide liquidity,

Not yet sure if this is the right investment for you? Here are 3 factors that might help you discover the money market advantage for risk-averse investors:

 

1. Diversification

Keeping your money in the bank is safe but money market funds offer higher potential returns by investing in low-risk instruments that typically yield more than traditional bank accounts.

Also, you can improve your savings strategy and achieve even higher potential returns if you invest monthly, quarterly, or whenever you have excess cash, given the effect of compounding interest.

2. Liquidity

Another benefit of investing in money market funds is that you can access your savings within a short period. Unlike some investment products that have long lock-in periods, money market funds have short holding periods, giving the flexibility you’ll need in times of unexpected expenses.

3. Professional Fund Management

Investing in a money market fund also means entrusting your money to professional fund managers with the expertise and experience to make informed investment decisions. You eliminate the guesswork in finding where to best put your savings as these experts ensure that your money is managed to maximize its potential growth.

 

Secure Your Financial Future with Money Market Funds

Sun Life offers the highest-quality money market funds in the Philippines. The Philippine-peso denominated Sun Life Prosperity Peso Starter Fund and the USD denominated Sun Life Prosperity Dollar Starter Fund offer affordable initial investments – only PHP 100 for the Peso Starter Fund and USD 500 for the Dollar Starter Fund.  Holding period is also short at 7 days only – giving you quick access to your funds!

Open an account here or talk to an advisor if you wish to know more.

 

ALSO READ: 5 Financial Wisdom Tips for a Brighter Future