Quick summary: Money market funds (MMFs) in Malaysia are Securities Commission-regulated funds that invest in short-term, low-risk instruments such as deposits and money market securities. Traditional unit trust MMFs and app-based cash funds both fall into this category. Indicative annualised returns across providers currently range from roughly 2.9% to just over 4%, before accounting for promotional rates. Returns are variable and not capital guaranteed.
What are Money Market Funds?
A money market fund invests in short-term, high-quality instruments — Treasury bills, negotiable instruments of deposit, commercial papers, and bank deposits — rather than equities or long-term bonds. Most MMFs hold at least 90% of their portfolio in deposits and money market instruments, which is what gives them their liquidity and relatively stable value.
MMFs are not the same as a savings account or fixed deposit. They are licensed capital market products regulated by the Securities Commission Malaysia, and units are not PIDM-insured, unlike deposits at a licensed bank.
How Money Market Funds Returns Work
Returns on Malaysian MMFs move with the Overnight Policy Rate (OPR) set by Bank Negara Malaysia and with broader money market liquidity conditions. When OPR moves, fund yields generally follow with some lag, since the underlying instruments reprice as they mature and are reinvested. This is why MMF rates are described as indicative or projected rather than fixed for a set term, in contrast to a fixed deposit.
Money Market Funds Providers in Malaysia
| Provider / Fund | Underlying Fund Manager | Indicative net yields | Fees | Minimum Investment | Shariah Option |
| Maybank Retail Money Market-I Fund | Maybank Asset Management | 3.2% – 3.8% | Annual Management Fee – 0.25% p.a. Annual Trustee Fee – 0.02% pa.a Switching Fee – RM10 per switch Transfer Fee – RM10 per transfer | RM0.01 – RM1,000 depending on platform | Yes |
| Principal Islamic Money Market Fund (Class D) | Principal Asset Management | 2.96% – 3.69% (trailing 12 months) | Management Fee – up to 0.40% p.a. Trustee Fee – up to 0.02% p.a. Transfer Fee – up to RM50 per transfer | RM10 initial / RM10 additional | Yes |
| Public Money Market Fund (PMMF) | Public Mutual | 3.40% (1-year return, FYE 31 Jan 2026) | Management Fee – 0.375% p.a. Trustee Fee – 0.02% p.a. (min RM18,000 / max RM300,000 p.a.) Transfer Charge – up to RM50 | RM1,000 initial / RM100 additional | Yes |
| Hong Leong Money Market Fund | Hong Leong Asset Management | 3.26% (1 Year Annualised Returns) | Management Fee – 0.35% p.a. Trustee Fee – 0.01% p.a. (min RM10,000 p.a.) | RM1,000 initial / RM100 additional | No |
| RHB Money Market Fund | RHB Asset Management | 3.21% (1 Year Annualised Returns) | Management Fee – 0.4% p.a. Trustee Fee – 0.08% p.a. | RM100 initial investment / RM100 subsequent investment | No |
| Versa Cash / Versa Cash-i | AHAM Capital | Promotional Fixed Rate Quest currently offers 4.2% p.a. (Versa Cash) or 3.9% p.a. (Versa Cash-i) fixed for 210 days on fresh funds | Management Fee – 0.30% p.a. Trustee Fee – 0.05% p.a. (Cash) / 0.02% p.a. (Cash-i) | RM10 | Yes (Cash-i) |
| KDI Save | Kenanga Investors | Base Interest Rate of 2.88% p.a.Tier 1 of 3.88% p.a. (requires a minimum RM5,000 KDI Invest balance); Tier 2 of 3.38% p.a. (minimum RM50,000 KDI Invest balance), effective 16 June 2026 | 0.00% (Up to RM50k) | RM100 initial investment/ RM10 subsequent investment | No |
| StashAway Simple | AmInvestment Bank | 3.50% – 3.60% p.a. | Management fee of 0.15% p.a | RM1 | No |
| Touch ‘n Go GO+ | Principal Asset Management | ~ up to 3.2% p.a. | Management Fee – up to 0.45% p.a.Trustee Fee – up to 0.03% p.a. | RM10 initial investment | Yes |
| Moomoo Cash Plus | United Overseas Bank (Malaysia) Bhd / UOB Asset Management (for United Money Market Fund – Class R), Maybank Asset Management (for Maybank Retail Money Market-I Fund), and Eastspring Investments (for Eastspring Investments Islamic Income Fund) | Promotional rate of up to 6% p.a. for a limited period; base rate without promotion hovers around 3.5% p.a. | No Fees | From RM0.01 | Yes |
Rates for app-based products are variable, promotional in some cases, and subject to change. The figures above reflect indicative rates reported as of mid-to-late 2026 and should be checked against each provider’s own app or site for the current figure. Past performance is not indicative of future performance.
App-Based Cash Funds: How Fees Typically Work
For app-based products such as Versa Cash, KDI Save, StashAway Simple, Touch ‘n Go GO+, and Moomoo Cash Plus, management and trustee fees are generally embedded in the underlying unit trust fund rather than charged as a separate, visible line item to the retail user — the rate quoted in-app is typically already net of these fees. This differs structurally from buying a traditional unit trust fund directly through an agent or bank, where a sales charge may apply in addition to the ongoing management fee.
Why a Small Fee Difference Compounds
Fee differences that look small on paper can add up over time and at scale. A fund charging 0.40% per annum in management fees versus one charging 0.25% represents a 0.15 percentage point annual difference. On a RM100,000 investment held for a full year, that difference works out to roughly RM150 — a figure that scales up with a larger balance or a longer holding period.
Risk and Regulatory Notes
- Money Market Funds are not capital guaranteed or capital protected. Principal values can fluctuate, even though the underlying instruments are considered low-risk.
- Units in Money Market Funds are not the same as a bank deposit and are not covered by PIDM, Malaysia’s deposit insurance scheme — this applies whether the fund is accessed through a traditional unit trust platform or an app.
- All the funds and platforms referenced above are licensed or regulated by the Securities Commission Malaysia.
- Returns depend on OPR movements, money market liquidity, and the credit quality of the underlying instruments, and will change over time.
FAQ
Are money market funds the same as fixed deposits?
No. A fixed deposit is a bank product with a fixed rate for a fixed term and is PIDM-insured up to the applicable limit. A Money Market Fund is a capital market product with a variable, non-guaranteed return and no fixed lock-in period, and is generally not PIDM-insured.
Is my money in a money market fund guaranteed?
No. Money Market Funds are not capital guaranteed. While the underlying instruments are considered low-risk, principal values can still fluctuate.
What’s the difference between a traditional unit trust MMF and an app-based cash fund?
Both typically invest in similar underlying instruments and are regulated the same way. The main practical differences are distribution channel, minimum investment amount, and how fees are presented — app-based products generally quote an all-in net rate, while traditional unit trusts may separate out management and trustee fees, and in some cases a sales charge.
Do all money market funds have a Shariah-compliant option?
Not all. Some funds, such as Principal Islamic Money Market Fund, Versa Cash-i, and the underlying fund used by Touch ‘n Go GO+, are structured to be Shariah-compliant. Others are conventional funds without a Shariah-compliant version.
Summary
Money market funds in Malaysia span both traditional unit trust products distributed through banks and agents, and app-based cash management features. Both categories are regulated by the Securities Commission Malaysia, invest in similar short-term, low-risk instruments, and produce variable, non-guaranteed returns tied to OPR movements. Fee structures differ by distribution channel — traditional unit trusts may itemise management, trustee, and sales charges, while app-based products typically quote a net rate. Current rates and fees for any specific fund should be checked directly against the provider’s own materials, since both are subject to change.
This article is for general informational purposes only and does not constitute financial or investment advice. The indicated rates, fees, and fund availability are based on the latest available information as at the date of publication of this article, and subject to change; readers should verify current figures directly with the relevant provider or fund prospectus before making a decision.