Money market funds are mutual funds that invest in short-term securities. They are not as risky as stocks, but they still offer the potential for growth. Money market funds are also low-risk investments that can help you build your savings for retirement or emergencies.
Kenya’s money market funds are a good choice for people who want to save money and earn interest on their deposits, but don’t have time to actively manage their portfolio.
Money Market Funds in Kenya offer investors the safety of bank deposits, with the added bonus of higher returns than traditional savings accounts.
They are ideal for those who want access to their funds without having to withdraw them all at once, or who want the ability to take out small amounts of cash as needed.
Money Market Funds also allow you to earn interest on your entire deposit balance rather than just the amount you’ve invested: As long as you have at least one Ksh in your account each month, you can continue earning interest on your entire balance.
Advantages of Investing In Money Market Funds
Investing in a Money Market Fund is one of the safest and most secure ways to grow your money. Here are the top four reasons why you should consider investing in a Money Market Fund:
1. Money Market Funds are CMA-insured, which means that even if your bank goes under, your money will be protected by the Capital markets authority (CMA).
2. Money Market Funds are very liquid—you can withdraw or transfer your funds at any time with no penalty—and they pay dividends that are typically higher than other investments like CDs or savings accounts.
3. Money Market Funds have low fees and minimums, making them easy to get started with even if you don’t have much money to invest yet (or if you’re just starting out).
4. The interest rates on Money Market Funds are fixed and do not fluctuate like other types of investments (like stocks or bonds)
The Kenyan money market is one of the most stable in Africa. As a result, it has become a haven for investors from all over the continent who are looking for a safe place to put their money.
However, when it comes to choosing the best money market funds in Kenya, there are many different options. This post will review some of the top money market funds in Kenya and help you make an informed decision about which one is right for you.
Sanlam Investments Limited
Sanlam Investments Limited is a Kenya-based investment firm that offers a range of investment products, including money market funds.
Sanlam Investments’ money market funds are available as either an SIT Mutual Fund or through the Sanlam Mutual Fund Platform. The Sanlam Money Market Fund is managed by the Sanlam Asset Management Limited,
The Sanlam money market fund is listed on the Nairobi Securities Exchange and trades under the stock symbol SLM.
-Sanlam Investments Limited has a good track record of consistently paying monthly dividends at a rate higher than that of its peers, demonstrating a commitment to shareholders’ interests.
-The company has a very low level of non-performing loans (NPLs) compared with other providers in the industry and maintains a sound risk management system that helps manage credit risks effectively on all types of loans extended to customers including retail, corporate and commercial customers as well as financial institutions such as banks or microfinance institutions (MFIs).
-Sanlam Investments Limited offers competitive interest rates compared to other providers in the industry
-Sanlam Investments Limited maintains close relationships with clients through many channels including its countrywide network of branches, call centers and online services like e-banking, e-broking and Smartphone App.
CIC Asset Management Ltd
CIC Asset Management Ltd is a company that offers various services to its customers. The company specializes in the provision of wealth management products and services, including investments and bonds. Today, it has grown into one of the largest financial institutions in Kenya with over 1 billion US dollars under management.
1. Guaranteed returns
3. Low brokerage fees and other charges
4. Easy access to funds
5. 100% principal guarantee at maturity (plus dividends)
6. Flexible investment periods that can be extended if required
7. Competitive interest rates
UAP Old Mutual
UAP Old Mutual which is now Old Mutual is a money market fund that has been in business for years. It has a 4.5 star rating on MFI Fund Research’s website, which rates the funds based on financial strength and performance.
The fund invests in high-quality securities with long-term maturity dates, such as government bonds, corporate bonds, and mortgage-backed securities. The fund is open to anyone who wants to invest
– High-yielding bank account with a minimum balance of Ksh. 2,000
– Automatic transfers from your current account to the UAP Old Mutual Key account
- Free deposits
– Access to service providers anywhere
- ICEA Lion Group
ICEA Lion Group is a leading financial services firm in Kenya. They have been helping our clients invest in and grow their businesses formany years.
They offer a wide range of investment services and products, including:
-Mutual Funds: Their mutual fund portfolios allow you to diversify your risk while maximizing your gains.
-Fixed Deposits: Fixed deposits offer you a guaranteed return on your investment, with no need to worry about market fluctuations or interest rate changes.
-Bonds: Bonds are an excellent way to lock in a fixed rate of return on your investment for a specific period of time, making them ideal for short-term goals like saving up for an upcoming vacation or car purchase.
-Stocks: Stocks are considered some of the most volatile investments out there, but they also offer the highest potential returns over time if managed correctly.
They also provide corporate finance solutions for businesses seeking expansion, acquisition or initial public offerings.
Zimele is a provider of funds transfer services in Kenya. They offer a range of services and features that are tailored to meet the needs of our customers, including:
– Instant fund transfers at competitive rates
– A wide range of payment methods
– Online account management with real-time notifications and alerts
– 24/7 customer support
Features and Benefits:
- You require a minimum deposit of Ksh. 100
- The fund offers competitive interest rates and enhanced generally keeps the funds safe.
- There are no hidden charges while dealing with this fund.
- You can use M-Pesa for deposits (Paybill number 501101) and withdrawals.
- The interest is compounded annually.
- You can request online statements.
- No minimum balance requirement
Stanlib is a full-service financial institution in Kenya that provides banking, wealth management and insurance services. The company has over 50 branches across the country, including key locations such as Nairobi, Mombasa and Kisumu.
The company offers a wide range of solutions for individuals and businesses. Stanlib’s investments, insurance and retirement fund services include equity and debt products, mutual funds, unit trusts, pension plans and individual retirement plans. It also offers loans for both individuals and businesses as well as insurance products designed specifically for individuals or families.
Britam is a leading insurance group in Kenya that offers a wide variety of financial products and services. Among them are endowment policies, life assurance policies, pension plans, and unit linked investments.
Britam was established as a life assurance company. It has grown to become an investment house that offers retail and corporate customers a wide range of products and services in banking, securities brokerage, insurance, mutual funds, asset management, pension fund management and employee benefits management.
The company has a network of over 100 branches across Kenya and offers its products and services through its subsidiaries: Britam Asset Managers Limited (BAML), Britam Life Assurance Company Limited (BLAC), Britam Bank Limited (BBL), Britam Insurance Company Limited (BILIC), Britam Investments Limited (BIL) and other subsidiaries.
Britam’s fund requirements are pretty simple. This include
- It would be best to have a mobile phone, a national I.D. card/Passport, and Ksh 1,000 on your MPesa account to start investing.
- You will manage all account features on your phone; this includes deposits, withdrawals, and investments.
- Clients can also top up your account anytime using your MPesa account.
African Alliance is a great option if you’re interested in investing in a money market fund, but you don’t want to risk losing your money. It’s one of the most secure options on the market, and it has a track record that speaks for itself.
African Alliance’s goal is to provide investors with a safe place for their money and give them an opportunity to earn some interest on their investment. They do this by investing in short-term bonds and other securities. These investments are guaranteed by the government underwriting agency, so there’s no risk involved—you can rest assured that your money is safe with African Alliance.
Factors To Consider When Choosing a Money Market Fund
Money market funds are a type of mutual fund that invests in short-term debt instruments, such as certificates of deposit, commercial paper and Treasury bills. Because they’re considered to be low-risk investments, they offer higher interest rates than money market accounts.
Money market funds are typically used by investors who want to earn more interest on their savings without taking on additional risk. However, you should carefully consider the following factors when choosing a money market fund:
Money market funds invest in short-term debt instruments, which means that they’re subject to volatility just like any other investment vehicle. If you’re trying to balance your portfolio with different types of investments, such as stocks and bonds, then you may want to choose a money market fund that has a different asset allocation than what’s recommended by your financial planner or advisor.
Money market funds have an expense ratio of about 0.5%. This means that for every Kshs 1000 invested in one of these funds, $0.50 will be deducted from it each year as expenses related to managing the money market fund itself (including overhead costs). The lower this number is, the better—but don’t overlook other important factors like liquidity!
The fees charged by a money market fund will vary depending on the type of account you have. The fees charged by the fund itself may be higher than those charged by some banks or credit unions. However, if you have an account with a bank or credit union that uses the same fund manager as the one managing your money market fund, then there may not be much difference between the two options when it comes to fees.
Minimum Deposit Requirements
Some funds require that you have at least Ksh.100,000 invested before they will allow you to open an account with them. Other funds require only Ksh. 20000 or Kshs.10,000 or below per month in order to open up an account.
Money Market Funds vs. Savings Accounts
One of the biggest differences between money market funds and savings accounts is risk. A money market fund invests in short-term debt securities that are considered to be relatively safe because they’re backed by collateral like government bonds or mortgages.
A savings account, on the other hand, is Kenya Deposit Insurance Corporation (KDIC)-insured. So if one bank fails, your savings are protected up to the limit. But if the entire banking system fails
When choosing between a money market fund and a savings account, it’s important to consider how much risk you’re willing to take on in order to get more interest on your investments. If you’re looking for something safer than what a typical savings account offers but don’t want to lose out on potential gains from stocks or bonds either: then consider investing in a money market fund instead!