8 Best Money Market Fund in Kenya (2024)
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By Michel Akili Last updated: July 23, 2024 10 Min Read
Table of Content
Introduction
How to build a Capital
Avantages of a money market Fund account.
Top 6 Money Market Fund that can help you to save your Money
Etica Money Market Fund
Cytonn Money Market Fund
Introduction
The first step in wealth building is to establish a goal and decide the purpose of your savings. That might be for a new automobile, a new home, or a specific investing goal. In this article, we will discuss how to save for investment goals and other basic goals.Whether you want to fosters a sense of togetherness and unite within your family
Consider to set up a savings goal in your family.
Family goals are important and more than important, because settings family goals creates a shared purpose and strengthens family bonds,that is the good way, you can pay yourselfves. For instance involving children in family goal-setting sessions teaches them teamwork, ambition, perseverance, and positive self-belief from a young age. That is not good? It also encourages a strong work ethic and a sense of responsibility.
Don't let you back. Saving for your health has many benefits. First, it helps cover out-of-pocket medical costs, especially if you have a high-deductible health insurance plan (HDHP). Contributions to a Health Savings Account (J CARE) are tax-free, and the account's earnings grow tax-free as well. Additionally, unspent money in a J CARE rolls over each year, making it available for future health expenses.
By prioritizing health savings, you not only protect your well-being but also enjoy financial advantages.
The second step is to Write down what you want to achieve on a piece of paper. Whether you already have an investment projet or not, learn continuously about personal finance, investment strategies, and wealth-building techniques.
When we talk about investment, there are many options or investment vehicles, including stocks, bonds, real estate,Cryptocurrency & mutual funds.
Research and choose investments vehicle based on your risk tolerance and financial goals.
How to build a Capital
Having capital involves accumulating savings or investments over time
Start by creating a budget. Track your income and expenses to identify areas where you can save money. Here the priority will be to save a portion of your income regularly.
Remember that building capital is a gradual process. Start small and stay disciplined.
Advantages of a money market Fund account
Money market fund Invest in short-term debt instruments. They are low-risk and provide stability.
In the Money Market Fund, interest is usually compounded daily and credited monthly.
With compound interest in an MMA, you earn interest not only on your initial deposit but also on the interest your account has already earned. It’s a powerful way to grow your savings.
Use money market funds to temporarily park funds before investing elsewhere or making anticipated cash outlays; they are not suitable for long-term investments.
8 BEST MONEY MARKET FUNDS IN KENYA
1.Etica Money Market Fund
The Etica Money Market Fund in Kenya aims to provide a high level of current income while protecting investors’ capital.
It seeks to outperform yields available on short-term fixed income instruments while ensuring liquidity.
What is the advantages of Etica Money Market Fund for investors:
High Yield
The fund aims to obtain a high level of current income while protecting investor capital. It consistently outperforms yields available on short-term fixed income instruments, with an impressive Effective Annual Yield of 18.29%
Liquidiy
Etica ensures liquidity, allowing investors to access their funds when needed and anywhere
Low Minimum Investment
You can start with a minimum investment of just 100 Kenyan Shillings,the value of 0.8 american dollar
Daily Compounding
The fund compounds interest daily, contributing to incremental growth.
2. Cytonn Money Market Fund (CMMF)
Cytonn Money Market Fund (CMMF) is a product of Cytonn Asset Managers Limited (CAML), the regulated affiliate of Cytonn Investments Management Plc. CMMF invests in high-quality interest-bearing investments, fixed deposits, and near cash holdings in the Kenyan market.
Let us explore the advantages of Cytonn Money Market Fund (CMMF) for investors:
Good Returns
According to Cytonn, the average effective annual rate for its MMF is 11%. This yield rate is impressive compared to some of the best money market funds.
Liquidity
Cytonn allows you to withdraw up to Ksh 300,000 in minutes via MPESA or bank
Safety of Capital
CMMF mainly invests in short-term debt securities with high credit quality, such as treasury bills and commercial paper. This makes it ideal for conservative, low-risk investors who prioritize stability and security for their invested capital.
3. GenAfrica Money Market Fund
The GenAfrica Money Market Fund is a fund managed by GenAfrica, a seasoned fund manager with over 25 years of experience and USD 3.5 billion in assets under management. The fund aims to provide a reasonable investment retur while preservings investors capital and it primarily invests in low-risk assets like other money market funds
Let's evaluate some benefits that the GenAfrica Money Market Fund provides for its investors.
Stability and Safety
The fund primarily invests in low-risk money market instruments such as fixed deposits, treasury bills, and short-term bonds.
Offers stability and capital preservation.
Reasonable Returns
Historically, the Apollo Fund has shown impressive returns. As of January 2024, it boasts an annual yield of 12.6%.
Affordability
The MMF has no initial fee limit or withdrawal limitations.
No initial fees.
Monthly Income Distribution
Investors receive income generated from interest income by the fund. And they can choose between periodic payouts or automatic reinvestment of interest ,which can be very profitable in long-run.
Regulated and Transparent
Regulated by the Capital Markets Authority.
GenAfrica provide Monthly fund factsheets and client statements.
The MMF has an easy sign-up process and top-up via the GenAfrica Unit Trust portal.
4. Apollo Money Market Fund
The Apollo Money Market Fund is a type of unit trust managed by the Apollo Group in Kenya. With the objective aims for a reasonable investment return while preserving capital. the apollo money market fund invests in low-risk money market instruments such as treasury bills, Fixed deposits, Corporate bonds and Government bonds .
Let's look at the advantages of Apollo Money Market Fund for investors.
Stability and Safety
The fund primarily invests in low-risk money market instruments like treasury bills and fixed deposits. In addition the fund Offers stability and capital preservation.
Reasonable Returns
Historically, the Apollo Fund has shown impressive returns. As of August 29th, 2023, it boasts an annual yield of 12.6%.
Affordability
The minimum investment requirement is only Ksh 1,000, making it accessible to a wide range of investors.
Liquidity
Withdrawals are processed within three business days which provides flexibility for short-term needs.
Low Entry Barrier
The minimum investment is KSh 1,000, and top-ups of KSh 1,000. But you can gradualy increase your investment.
5. Lofty-Corban KSH Money Market Fund
The Lofty-Corban KSH Money Market Fund is a specialized unit trust managed by Lofty Corban Investments Limited. Here’s what you should know:
Objective
The fund aims to provide a reasonable investment return while preserving capital. It primarily invests in low-risk money market instruments denominated in Kenyan Shillings (KES).
Yield Rate (As of February 1st, 2024)
The Lofty-Corban Special Money Market Fund has an impressive yield rate of 15.9%. Higher than the KSH Money Market Fund (at 13.16%) and the USD Money Market Fund (at 5.21%).
Why Lofty-Corban KSH Money Fund is so Special?
The Special Money Market Fund offers attractive returns due to its specific investment strategy.
✅The minimum investment is KSh 1000, and the interest is compounded.
6. Madison Money Market Fund
The Madison Money Market Fund is a collective investment scheme managed by Madison Group Limited in Kenya. It invests in money market securities, aiming for steady income streams and high liquidity.
Initial Minimum Investment: KES 5,000.
Minimum Top-Up Amount: KES 1,000.
No Restriction on Tenor.
Withdrawals Processed in 3 Working Days.
Monthly Distribution of Interest.
Effective Annual Returns: 13% - 15%.
Madison Money Market Fund had an average daily yield of 13.05%.
7. Nabo Money Market Fund (KES)
The Nabo Money Market Fund is a unit trust managed by Nabo Capital. It aims to maximize current income by investing primarily in a diversified portfolio of short-term debt securities and instruments, all while preserving capital and maintaining a high degree of liquidity. Investors seeking steady returns and accessible liquidity may find this fund appealing.
The Nabo MMF offered an average daily yield of 14.11% in December, with daily interest compounded monthly.
New investors entering the fund must make an initial minimum investment of KSh 100,000, with additional top-ups of KSh 10,000 for subsequent investments in the fund.
8. Sanlam Money Market Fund
The fund boasted an impressive average daily yield of 13.57% in December, and interest is calculated daily and compounded monthly.
New investors need an initial deposit of KSh 2500 and top-ups of KSh 1000.
Conclusion
Whether you're saving for short-term goals or seeking stability, money market funds offer a clear path to financial growth. Remember always to research thoroughly and choose a fund that aligns with your investment objectives and risk tolerance.
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