Entrepreneur's Corner

How To Access Various Types Of Money Market Funds In Kenya

BY Getrude Mathayo · April 28, 2022 01:04 pm

KEY POINTS

Money market accounts pay a variable interest rate, so the rate consumers earn on their money can fluctuate over time. It’s common for these accounts to have tiered rates, meaning higher balances are rewarded with a higher annual percentage yield (APY)

KEY TAKEAWAYS

Money market accounts are similar to savings accounts, but they have some transactional features like checking accounts. For example, a money market account may come with a debit card and checks.

Money deposited into a money market account earns interest, an advantage over standard checking accounts, which typically don’t accrue interest on the account balance.

Do you have a dream or goal you wish to achieve within a certain timeframe? The Money Market fund, MMF, will help you plan your financial goals whether it be setting up an emergency fund, saving for school fees, or saving up for a business project

A money market fund is a low-risk mutual fund that invests only in securities that can be quickly converted to cash. These securities include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity.

Money market funds have good interest rates, are highly liquid, very secure, and well managed. Start investing with the best asset fund managers and earn good yields monthly. If you haven’t invested in Money market funds, you’re wasting the opportunity to earn high yields and create wealth.

People are always looking for the best money market funds provider in Kenya. The number of financial institutions that offer this type of investment has increased over the last few years, and it’s possible to find several different providers with more or less the same rates

Money market funds are considered a good place to park cash because they’re much less volatile than the stock or bond markets.

Types Of Money Market Funds in Kenya

Cytonn Money Market Fund
Nabo Africa Money Market Fund
Co-op Money Market Fund
Zimele Money Market Fund
Britam Money Market Fund
CIC Money Market Fund
Sanlam Money Market Fund
CBA Group Money Market Fund in Kenya
Genghis Capital Money Market Fund
Equity Bank Money Market Fund
UAP Old Mutual Money Market Fund
NCBA Money Market Fund
Genghis Capital Money Market Fund
ICEA Money Market Fund
Alphafrica Kasha Money Market Fund
Madison Money Market Fund
Dry Associates Money Market Fund
Apollo Money Market Fund
Dyer and Blair Money Market Fund
African Alliance Kenya Shilling Fund
Diaspora Money Market Fund

How do money market accounts work?

Money market accounts are similar to savings accounts, but they have some transactional features like checking accounts. For example, a money market account may come with a debit card and checks.

Money deposited into a money market account earns interest, an advantage over standard checking accounts, which typically don’t accrue interest on the account balance.

Some money market accounts require a minimum deposit to open and may charge a fee if the balance falls below a specified minimum.

Money can be added or withdrawn to a money market account, but depending on the bank or credit union, there may be a limit on the number of transactions permitted each statement period, typically six, the same as savings accounts.

Money market accounts tend to offer higher yields than typical savings accounts.

Cytonn Money Market Funds

Cytonn is the best money market fund you would like to invest in. Cytonn Money Market Fund (KSH) 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.

This is your ideal investment option if you are looking to build up your savings or for cash, you intend to use to meet your short-term goals. The minimum investment is Ksh 100 with no minimum top-up amount.

To register, dial *809# then Select create an account, enter your details including your name, ID, address, fund your account via M-Pesa or bank. Now you have a CMMF account working

Britam Money Market Fund

It invests in money market securities with a maturity of fewer than 12 months allowing for a higher-than-average rate of return as well as immediate liquidity. The income that the fund earns is accrued daily and distributed to the unit holders’ net of fund costs. With the fund, you get to earn between 8-10%* in interest as you build your savings.

To register, dial *778#, Select create an account and enter your details including your name, ID, and Address. sign up via MyBritam App available on Google Play Store and App Store and earn 8-10% interest annually.

Zimele Money Market Fund

The Zimele fund is flexible, convenient, and allows you to save according to the pace that you choose. In other terms, it’s also called a ‘savings plan.’ Zimele pools members’ contributions and invests them in safe high-yielding interest-bearing assets such as Treasury bills, Treasury bonds, and fixed deposits

You only need a minimum deposit of 100 shillings and the fund offers competitive interest rates and enhanced generally keeps the funds safe.

Returns are in the form of capital gains on units purchased, with a minimum amount of ksh.100. One can invest either at regular intervals or lump sum amounts at any frequency. Charges include a one-off administration fee of 3% for every new investment.

Accounts can be opened online at www.zimele.co.ke/join or through the Zimele app.

Sanlam Money Market Fund

Sanlam money market fund offers monthly compounding of interest. The interest is calculated daily and credited to your money market account monthly. This means that in the next month, you earn interest from the interest earned in the previous month

Sanlam, like many others, invests in money market securities, including higher-yielding fixed and call deposits, treasury bills, and investment-grade commercial paper.

The maturity of this specific fund is usually less than one year after investing in money market instruments.

To register, the process is fully online. No need to meet an agent physically or go to any offices

CIC Money Market Fund

The CIC Money Market fund is a low-risk fund that invests in diversified near cash, interest-bearing instruments in the Kenyan market. The fund invests in high-quality interest-bearing investments, fixed deposits, and near cash holdings in the Kenyan Market.

The process if fully online

CBA Group Money Market Fund in Kenya

The CBA fund invests in fixed deposits, interest-bearing investments, and near-cash holdings in the Kenyan market. If you are a low-risk investor, then this CBA fund is definitely for you, especially if you prefer stability and security at the same time. It is also ideal during times of stock market turbulence.

Interest is calculated on a daily basis and credited to the client’s account monthly. They don’t have a joining fee with a management fee of 2% p. a.

Genghis Capital Money Market Fund

Interest is computed and earned daily and credited to the client’s account monthly for the client’s access. The minimum investment amount and minimum additional top-up are Kshs. 500. The rate, which is published daily, is net of fees (but gross of withholding tax on interest earned).

Co-op Money Market Fund

The Co-op Money market with a daily yield of 8.32% and an effective annual rate of 8.68%. If you invest Ksh 100,000 at a daily yield of 8.32% you will earn Ksh 22.79 daily and Ksh 683.84 monthly. The monthly income is charged a withholding tax of 15%. Net income after withholding tax will be Ksh 581.26.

UAP Old Mutual Money Market Fund

The fund is suitable for individuals who want to start their investment journey or are looking for a place to build an emergency fund – normally considered three to six months of monthly expenses.

This fund is also suitable for a corporate or an individual who seeks to grow their capital while ensuring investment risk is contained.

You can start from the convenience of your mobile phone. Simply dial *480# or visit https://m.me/UAPOldMutualGroup to open an account.

Equity Bank Money Market Fund

Money Market accounts from Equity Bank offer higher interest rates for higher deposits, along with no monthly fees

Madison Money Market Fund

The Fund is an excellent investment option that offers you the opportunity to earn a competitive return as you save to meet your various financial needs. The Madison Money Market Fund invests in short term debt securities with maturities of less than 12 months

To join, dial *828#, Select create an account and enter your details including your name and ID address.