At GrabInvest, our mission is to help you achieve your savings goals by providing investment solutions that make your cash work harder.
When you set aside money with AutoInvest or Earn+, your money is invested in diversified portfolios made up of money market funds and/or short-term bond funds to deliver stable returns* with low risk.
What are money market funds?
Money market funds are highly stable funds holding securities with a residual maturity typically not exceeding 1 year. They tend to be made up of high-quality deposits or government securities and follow specific MAS guidelines.
What are short-term bond funds?
Short-term bond funds are funds that invest in bonds for a duration of shorter than five years.
What are the differences between money market funds and short-term bond funds?
While both funds aim to provide stable returns with low risk, there are differences between money market funds and short-term bond funds.
Due to the very short maturity of the assets, money market funds serve to limit risks while maintaining a high standard of liquidity.
Compared to money market funds, short-term bond funds offer a higher potential yield because they have greater degrees of freedom: they typically invest in bonds that have a residual maturity ranging from a few weeks to a few months and those bonds can be investment-grade corporate bonds that typically offer a higher yield than same-maturity government-guaranteed bonds.
By harvesting that risk premium, investors can achieve higher returns than money market funds. Naturally, with higher returns, these funds have slightly higher risk, but a well-diversified portfolio of short term bonds typically outperforms money market portfolio over the short-to-medium term while drawdowns (if any) are usually mild and short-lived.
By having the right mix of money market funds and short-term bond funds, we can construct a diversified portfolio that offers stable returns with low risk that help you to grow your wealth.
Composition of portfolios
The underlying funds are managed by our expert partners – Fullerton Fund Management, and UOB Asset Management Ltd. You can see a breakdown of the composition of the portfolios split across four different funds in the table below:
| Money Market Funds | AutoInvest | Earn+ |
|---|---|---|
| Fullerton SGD Cash Fund: The investment objective of the Fund is to provide investors with liquidity and a competitive return. | 28% | - |
| United SGD Money Market Fund: The investment objective of the Fund is to provide a competitive return. | 25% | - |
Fullerton SGD Cash Fund:
Fact sheet | Prospectus | Product Highlights | Annual Report
United SGD Money Market Fund:
Fact sheet | Prospectus | Product Highlights | Annual Report
| Type Of Short-term Bond Funds | AutoInvest | Earn+ |
|---|---|---|
| Fullerton Short-term Interest Rate Fund: The investment objective of the Fund is to achieve medium-term capital appreciation for investors. The investments of the Fund will be broadly diversified with no specific industry or sectoral emphasis. | 15% | 50% |
| United SGD Fund: The investment focus of the Fund is to invest substantially all its assets in money market and short-term interest-bearing debt instruments and bank deposits with the objective of achieving a yield enhancement over Singapore dollar deposits. | 32% | 50% |
Fullerton Short Term Interest Rate Fund:
Fact sheet | Prospectus | Product Highlights | Annual Report
United SGD Fund:
Fact sheet | Prospectus | Product Highlights | Annual Report
Investing is a balance between risk and return. We believe that a diversified portfolio managed by experts with a track record of success is the key to creating the best investment and money management tools for you.
It takes a few simple steps in the Grab app to get started. You can also onboard via Singpass.
On an ongoing basis we monitor the behaviour and performance of the underlying funds and may replace and invest in other funds which may be managed by other Asset Management Companies.
* Projected yield and returns are not guaranteed or protected. Please refer to our latest projected yield and returns.
