Have you been looking for a reliable place to invest your money? If yes, have you thought about investing in a Money Market Fund (MMF)?
A money market fund is a safe and secure investment vehicle in which you can grow your wealth or put your money in the short term.
The beauty of money market funds is that they are not only low risk, but they also offer principal protection and the likelihood of enjoying higher interest rates as compared to savings accounts.
Anyone can invest in a money market fund – be it individuals, chamas, corporates, saccos, NGO’s, SME’s and any other entity that seeks to achieve a good return on their funds in a professionally managed environment.
How does it work?
The funds from many investors are pooled together and invested in low-risk money market instruments and sometimes, liquid alternative investments.
The fund manager is in charge of overseeing the operations of the fund for a fee that varies from manager to manager.
They decide where to invest their client’s money in order to get the best returns.
Benefits of a Money Market Fund
MMFs are a great investment vehicle since they are low risk, meaning that you have a greater likelihood of getting your investment back once the investment term ends.
Most MMFs usually require very little initial investment but normally vary from one MMF to another.
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For most MMFs, they are easily accessible, meaning that you can easily invest or withdraw.
MMFs are cost-effective and therefore, they are a simple and effective way of investing small amounts of money
Your funds are usually managed by a professional fund manager meaning you let your investment work for you without any extra charges.
Risks
As money market funds are considered safer than other investments, the only major risk remains inflation.
The nominal returns on the fund during a certain period may be impacted by material changes in the inflation rate.
So why invest in Cytonn Money Market Fund (CMMF)?
The CMMF offers a unique investment vehicle since interest is earned daily, it offers capital preservation, it provides its investors with high-interest returns on their low-risk investment and there is ease of entry and withdrawal of funds for their investors.
How to start investing in CMMF?
1. Select Create Account
2. Enter your name and ID number
3. Select Source of funds
4. Confirm detailsYou’ll receive SMS with a temporary PIN
Dial *809#
1. Enter the temporary PIN
2. Select Invest
3. Enter amount
4. Enter M-Pesa PIN.
That’s it!
You’ll receive SMS acknowledging receipt of your funds.
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