What is the difference between Stashaway Simple and Philip SMART Park?

Hi Elijah Lee,

​

Phillip Smart Park give 3.63% p.a. (11 January 2023) which is quite high. How can they achieve it?
​

How safe Smart park is?

If Smart Park were to invest in corporate bonds, what would happen to our funds if a bond price falls?

Hi Alfred,

Phillip SMART Park is indeed MMF.

The holdings are short term, high quality money market instruments and debt securities. The average maturity timeline is less than 40 days. In other words, they are instruments that will mature in less than a year, and hence capital appreciation from price movement is close to zero.

Stashaway Simple is part LGI MMF, part LGI ELF. The average maturity duration of LGI MMF is 90 days, that of LGI ELF is almost a year. So in LGI ELF, there is a better chance of gain from capital appreciation since some of the debt instruments inside have more than a year to maturity (factsheet will show some holdings mature in 2021)

So you can't compare the two. LGI MMF and Phillip MMF, sure. But not with LGI ELF. Different mandates.

By the way, check out the LGI MMF and Phillip MMF price charts. You'll be able to see something in the price movements which although small, but might make a difference in how you perceive the two funds :)