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Why investors are turning to Singapore-focused equity and debt funds

Investors turned to Singapore-focused equity and debt funds amidst global volatility.

Investors are turning to Singapore-focused equity and debt funds for their defensive, high-quality appeal amidst global volatility, an analyst said.

Singapore’s fund industry saw a sharp rise in demand for money market funds in the second quarter of 2025, according to a FundSingapore/Morningstar Q2 report.

“At the same time, many chose to stay on the sidelines, leading to sizeable inflows into money market funds,” Arvind Subramanian, senior analyst, manager research at Morningstar

Net inflows into the asset class reached $2.8b, tripling compared with the previous quarter.

The strong flows into money market products accounted for almost 60% of the $4.1b in total unit trust inflows recorded during the period. By comparison, fixed income funds drew $918.7m whilst allocation strategies gained $318.51m.

Equity funds lagged, with inflows falling to $80.89m from $397.11m in the first quarter.

On a half-year basis, money market funds held their lead with $3.69 billion in inflows, reinforcing their dominance within Singapore’s fund landscape.

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