Interest in money market funds in Singapore falls 44% quarter on quarter to S$1.5 billion in Q3: Morningstar 

[SINGAPORE] Singaporean investor interest in money market funds waned in the third quarter of 2025, with net inflows of S$1.5 billion, down 44 per cent from the S$2.7 billion recorded for the quarter prior, a FundSingapore/Morningstar report has found.

This was despite a 32 per cent quarter-on-quarter rise in total net inflows, to S$5.4 billion for Q3.

Demand for fixed-income funds in Singapore “recovered strongly”, the report noted, pointing out that net inflows grew nearly four times to S$3.3 billion.

Within the fixed-income segment in Singapore, Asia fixed-income funds attracted the largest inflows, at about S$1.8 billion, with “strong investor demand” for Asian credit exposure and regional yield opportunities.

This was followed by global fixed-income funds, with inflows of S$1.5 billion.

“Smaller inflows were observed in fixed-income miscellaneous funds of S$76 million, while US and emerging-markets fixed-income sustained mild outflows of S$46.9 million and S$4.9 million, respectively,” the report said.

Interest in equity funds in Singapore, meanwhile, remained “fairly tepid” in Q3, with net inflows of about S$164 million.

Within the Republic, interest in Singapore equity nearly doubled quarter on quarter to hit net inflows of S$448.5 million.

The next biggest category by net flows was global equity income, with net inflows of S$107.5 million in Q3.

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Notably, Singaporean investors allocated more funds to the sector equity precious metals category, which recorded net inflows of S$87.1 million amid rising interest in gold and rare minerals.

CPFIS-included funds’ performance

FundSingapore/Morningstar also reported that three-month average returns across all Central Provident Fund Investment Scheme (CPFIS)-included funds stood at 7.88 per cent in Q3.

One-year gains came in at 11.78 per cent. Cumulative three-year returns stood at 37.03 per cent, translating to an annualised rate of 10.74 per cent, said the report.

Unit trusts posted average returns of 8.8 per cent over three months and 12.41 per cent over a year, based on Morningstar data. Over a three-year period, they delivered a cumulative return of 40.43 per cent.

As for investment-linked insurance products, they returned 7.18 per cent in Q3, 11.31 per cent over one year and 34.79 per cent cumulatively over three years.