The whole point of placing your money in any investment is to earn interest and get good returns at the end of a certain period; be it daily, weekly, monthly or yearly.
In Kenya, currently and all over the world, when investment managers sell their investment products, they “entice” you with a common saying that goes, “Your investment will earn you interest daily”.
So, what exactly does your investment manager mean when he/she tells you that you will earn you interest daily?
In lay man’s language what it means is that the money you place in any investment option you choose accumulates or increases on top of the account balance every day.
A good scenario where your investment earns interest daily is the case of money market funds where interest is calculated on a daily basis and credited to your account net of costs.
Take, for example, the Cytonn Investments’ Money Market Fund (CMMF).
It is a low-risk fund that seeks to preserve your capital as you get above-average returns on a daily basis which are then compounded.
The fund seeks to outperform the yield on all available money market instruments like Treasury bills and fixed deposits by maintaining a healthy diversified portfolio.
Investors who decide to place their money in the CMMF earn an interest of 11 percent per annum.
CMMF has the following key features:
- Minimum initial investment – 1,000 shillings
- Top-ups – 1,000 shillings
- Interest earned daily
- Ease of entry and withdrawal of funds
Also,
- No entry or exit fee is charged.
- Interest earned is compounded on a daily basis.
- Your capital will remain safe.
- You will get competitive rates based on the market.
- For first time investors, this would be the best starting point
When you decide to invest in a money market fund, you earn interest on a daily basis and you can verify this by checking your account on a daily basis.
Are you interested in earning interest on a daily basis on your investment? Then sign up for Cytonn’s Money market fund here
Read Also: Is Your Money Safe In The Money Market Fund?