By Chris Firth

What do financial advisers do with their own money that most individuals don't do? I can't speak for advisers as a group, but I can give you a selection of insights into my own strategies. But bear in mind that these approaches may not be suitable for everyone.

I don't use fixed deposits

Almost everyone has a need for a safe place for cash. However, fixed deposits are not on my shopping list. I would use a money market fund instead. A unit trust that calls itself a 'money market fund' must comply with strict guidelines on quality, issuer and tenure. The result is a low-risk investment that easily outperforms a fixed deposit if you can live without a guaranteed return. Currently, a 12-month fixed deposit promises you a paltry 0.45 per cent or so. In contrast, the LionGlobal SGD Money Market Fund is averaging around 1.3 per cent and the Phillip Money Market Fund around 1 per cent.

Next >>