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Fixed income funds outperform short-term unit trusts
MMFs remain the most popular class of unit trusts based on the ease of entry and exit for individual investors, with most of the funds allowing immediate withdrawals.
Fixed income funds beat returns from money market funds (MMFs) over the 12 months to March 2025, thanks to higher returns from the sale and revaluation of long-dated bonds in a falling interest rate environment.
According to data from the Fund Managers Association (FMA), which shows the yields on select fixed income funds and MMFs, the average return for unit trusts primarily investing in Treasury bonds stood at 16.94 percent, compared with 12.96 percent for MMFs in the review period.
