The 9 Best Money Market Funds In Kenya -2022

Money market fund in Kenya. I will be providing you with the best 9 money market funds in Kenya and I know You have probably heard about investing and tried some investment options

Perhaps you’ve stumbled across what I call online scums disguised as investments, and maybe you have been attempting to make profits but in vain ,don’t worry the 9 Best marketing funds discussed here are sure and tested in Kenya and beyond

I think it’s high time for people to learn about investments and investment options before they dig deep into things they don’t know and fall prey to cons and online scams. It is essential to learn about investments and investment options before trying them.

In this article, I will talk about the 9 best money market funds in kenya and their benefits; specifically, I will talk about investing in the most profitable money market funds in 2022, all proven and legit

Today you will learn about

What is a Unit Trust

Money Market Fund

Equity Fund

Balanced Fund

Bond Fund

How to Invest in Money Market Funds (MMF)

Pick a professional Money manager to manage your MMF

Zimele

Britam

CIC Asset Management Ltd

UAP Old Mutual

ICEA Lion Group

Cytonn Money Market Fund

LEGACY MONEY MARKET FUND

Stanbic IBTC Money Market Fund

Vanguard Treasury Money Market Fund

Money Market Funds are a great way to save your money.

The security of your investment.

You only need a small amount of money to start.

Ease of access to your funds

Money market fund is your ideal investment option for cash you intend to use to meet your short term goals.

What is a Unit Trust?

Before digging into the 9 Best Money Market Fund In Kenya, let’s talk about Unit Trusts because we cannot speak about Money Market Fund without talking about Unit Trust.

Unit Trust is a type of investment that joins individuals with common goals of investment and saving in an investment scheme that a professional investment manager manages. In this type of investing, all individuals who have invested benefit from the economies of scale that the investment scheme provides.

Who regulates the Unit trusts in Kenya?

In Kenya, Unit trusts are regulated by CMA (Capital Markets Authority).

Types of unit trusts

  • Money Market Funds

So, let’s get to it; first of all, let us know what Money Market Fund is.

Money Market Fund is a type of Unit Trust fund which invests in low-risk investments. This type of MMF invests in interest-bearing assets like fixed deposits, treasury bills, commercial bonds, short-term bonds, etc. A money market fund is suitable for investors looking to easily access their savings (Liquidity), who want to preserve their capital, and those looking for monthly income because they accumulate interests added to their initial and subsequent savings.

  • Equity Fund

Equity Fund is another type of Unit Trust that joins individuals with common goals of investment and saving in an investment scheme that a professional investment manager manages.

In this type of investing, all individuals who have invested benefit from the economies of scale that the investment scheme provides. It is a medium high-risk investment that investments are mainly made in listed companies on the NSE (Nairobi Security Exchange), which is the leading African Exchange based in Kenya. Equity Fund is suitable for those looking for long-term investments.

However, Equity Fund has no guarantee on returns because the funds vary daily; you have to be prepared for good returns or significant losses. For more information about Equity Fund, click here.

  • Balanced Fund

It is also called a Growth Fund and is a medium high-risk investment that investments are mainly made in listed companies on the NSE (Nairobi Security Exchange), fixed deposits, and bonds. Balanced Fund is suitable for those interested in quickly accessing their savings (Liquidity) and growing their capital. Although it is less risky than an Equity fund ( because your investment is invested in certain interest-earning assets), it has no return guarantee. The funds vary daily; you have to be prepared for good returns or significant losses. 

Balanced Fund is suitable for balancing returns and risks, investing in the medium to long term. And those who want to grow their capital and earn income.

  • Bond Fund

It is also referred to as Fixed Income Fund and is a medium high-risk investment that investments are mainly treasury and corporate bonds and other fixed deposits. It is designed to minimize losses. It is suitable for investors who want regular income, better returns than those in Money Market Funds, and those who want to invest for short to medium terms. ( a minimum of 2 to 3 years)

Now that we know about Unit Trust and types of Unit Trusts, let us dig deep and talk about Money Market Fund ( as said earlier, this article will talk about Money market Funds and their benefits).

So let us look at the benefits of Money markets and how to invest in them.

How to Invest in Money Market Fund in 2022

Now that you know what the Money market is, let’s look at how we can invest in it and the benefits of investing.

First, you need to understand that Money Market Fund is the most common type of Unit Trust in Kenya, and a professional money manager manages it.

Money Market Funds invests in three Money market Instruments (These are called asset classes) as listed below:

  • Fixed deposit – deposits are made in commercial banks
  • Commercial paper- this is one of the assets that corporations issue to finance their short-term cash flow needs.
  • Treasury bills – This is when the government borrows money from the public. For example, through M-Akiba

Think of a Money Market Fund as a big cake. When you buy a unit or units of the Money Market Fund, you are essentially cutting a piece of the cake.

Remember,  a Money Market Fund investor is called a Unitholder.

I have highlighted ways in which you can invest in MMF below

  1. Our list is approved and safe to invest
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Investing in Money Market Funds In Kenya

The 9 Best Money Market Fund In Kenya and beyond

The easiest and most used ways are choosing companies that deal with Money Market Fund; some of the companies that offer Money Market Funds in Kenya include:

Zimele is an Asset Management Company. It has been licensed by the Retirement Benefits Authority (RBA). It provides pension scheme fund management services and is licensed by the Capital Markets Authority (CMA) as a fund manager and investment advisor. Zimele was founded in August 1998. it manages funds under the Zimele Unit Trust and the Zimele Pension Schemes. It also offers investment advisory services to individual and corporate clients.

The good thing about Zimele is that it allows a unitholder to grow their savings in a flexible and convenient setting and at their own pace(you can save at any time).

One can save any amount from as low as Ksh.100 and earn interest at 9.56% per year on all deposits. You can also Withdraw at any time and get your cash through  M-Pesa or bank. You can also make deposits via M-Pesa or Bank channels.

Here. Funds are invested in safe, interest-bearing assets such as Treasury bills, bonds, and bank deposits. The interest income is credited to members’ accounts (after deducting fees and taxes).

One can join Zimele by filling out this form online.

Britam is a leading financial services group that operates in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi and is also listed on the Nairobi Securities Exchange.

It offers a wide range of financial products and services in Insurance, Asset management, Banking, and Property.

The Britam Money Market fund under The Britam Unit Trust helps an investor to plan for their financial goals. 

The good thing is that one can invest from as low as Kshs. 1,000, earn between 8-10% p.a (daily compounding interest) in interest as they build their savings. You can also track your savings and transact in real-time via their app, USSD, or portal and withdraw straight to your M-Pesa or Bank account within 48 hours.

You can create an account in Britam by signing up via the MyBritam App ( available in Google Play). MyBritam Portal or USSD *778#.

CIC Group provides flexible insurance and financial services built around investors’ needs. They have innovatively created customized products that have positioned them as a trusted insurance and financial services provider.

The CIC Money Market is a low-risk fund that invests in short-term interest-earning instruments.

It is suitable for investors who want capital preservation, stability, and a short-term parking bay for surplus funds, particularly market volatility.

The key features of CIC Money Market Funds are that there are zero initial fees, there is a 0% initial fees per annum, the minimum investment fees is Kshs 5,000, minimum additional fees (investment) is Kshs 1,000, and has a low-risk profile. You can join CIC Money market here.

The UAP Old Mutual Group comprises UAP Holdings PLC and Old Mutual Holdings’ (Old Mutual Life Assurance Company, Old Mutual Investment Group, and Faulu Microfinance Bank.). It is one of the largest in East Africa and offers customers insurance, investment, banking, and savings solutions. It operated an integrated financial services business model and was formed in 2015 after Old Mutual PLC acquired a controlling stake in Faulu Microfinance Bank in 2014 and UAP Holdings PLC in 2015.

UAP Old Mutual Money Market Fund invests in treasury bills, fixed deposits, corporate notes, and bank call deposits. It is suitable for those individuals who want to start their investment journey or build an emergency fund. It is also suitable for corporate or individuals who seek to grow their capital with low investment risk.

The benefit of this fund is that Returns are distributed monthly, and you can decide to reinvest and grow your investment faster or withdraw it to your bank account. You also have the freedom to switch your investment between different funds to maximize your profits without forgetting that you can set up a cash flow plan to cater to your everyday cash needs. You can also start investing using your mobile phone by dialing  *480# or chatting on UAP Facebook messenger, virtual assistant, Arifa to open an account, save, and watch your money grow.

ICEA Lion Group is among the 9 Best Money Market Funds in Kenya, it is a financial service provider offering insurance, trusts, pensions, and investments services. With ICEA Lion Group Money Market Fund, an investor can maintain the value of their initial investment, receive interest and earn additional interest on their interest. That’s the power of compounded interest. The longer you save with them, the more interest you receive. It also allows you to access your money whenever you need it, which means you can withdraw your money and still receive interest. There are also no penalties for withdrawal or monthly account maintenance charges. Instead, you are awarded a monthly income. You can also set a goal, and the ICEA Money Market fund will help you achieve it. They ensure that you have a convenient and safe means of saving and tracking your progress. The additional monthly income that you get encourages you towards saving more and reaching your target.

ICEA Money Market fund is a low-risk investment that enables one to diversify their investment by introducing more stable returns to your portfolio. If you are looking for a new way to invest, you can register with ICEA Money Market Fund.

Cytonn Money Market Fund is a product of Cytonn Asset Managers Limited; it invests in high-quality interest-bearing investments, fixed deposits, and near cash holdings in the Kenyan market. It is an ideal investment option to build up your savings or short-term goals.

Some features of Cytonn Money Market Fund include; There is no entry or exit fee charged, Interest is earned daily, Capital will remain safe, competitive rates based on the market.

This is the best starting point for first-time investors.

To join Cytonn Money Market Fund, you need to fill out this form.

The Legacy Money Market Fund is a low-risk Nigerian mutual fund that invests in Money Market Instruments. It is regulated by the Securities and Exchange Commission, Nigeria. The Fund targets individuals and institutional investors to preserve capital and generate stable income for investors. The Minimum initial deposit is 1,000 units, and the minimum additional deposit is 1,000 units. Register here if you are in Nigeria and want to try the Money Market Fund.

The Stanbic IBTC Money Market Fund aims to achieve capital preservation and stable income generation by investing in high-quality short-term securities such as Treasury Bills, Commercial Papers, and Fixed Deposits. It is very convenient because it allows one to transact from anywhere through their online platforms, i.e., Mobile App and Web Portal. The minimum investment amount one can deposit is N5,000. You can open an Instant Account and start saving with Stanbic IBTC Money Market Fund.

Vanguard Treasury Money Market Fund invests primarily in U.S. Treasury securities. it also invests in other securities including agency debt collateralized by U.S. government securities. The good thing about Vanguard Treasury Money Market Fund is that they help reduce risk through broad diversification by investing in thousands of individual stocks and bonds to help reduce the risk to an investor’s investments.

If you are US citizen and are looking for a place to invest in Money Market funds, you can try Vanguard Treasury Money Market Fund.

Learn more than the 9 Best Money Market Funds In Kenya in the Video

Benefits of Money Market Funds (MMF)

  1. Money Market Funds are a great way to save your money.

Have you seen or heard of people saving their money under the bed, mattress, or walls? MMF is a better alternative than that. It’s also better than having your money in a current account (Bank) because they have better interest rates.

  1. The security of your investment.

The good thing about Money Market Funds is that they are licensed and regulated, which protects your investment. As we talked about before, the function of the fund manager is to make sure that they consider the security of your investment.

  1. You only need a small amount of money to start.

Money Market Funds allow even low-income earners to invest, unlike other investments that require loads of money to start. MMFs like Zimele allows one to invest with as little as Kshs 100

  1. Ease of access to your funds

You can use a Money Market Fund to store your emergency fund and at the same time be assured of ease of access. If you need to withdraw the money, You don’t need to wait for many days or months to access your funds. Some companies, like Cytonn, offer instant withdrawal to Mpesa and a maximum of 48 hours to your bank account. Also, when you withdraw your money, you get your money plus the interest rate earned for ALL the days you had invested.

  1. Money market fund is your ideal investment option for cash you intend to use to meet your short term goals. 

These may include Emergency Fund, Wedding planning, Construction/Project funds, Holiday Planning, School Fees, Car/Mortgage /Land, Chama/Investment Funds. Family and Staff welfare funds. 

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I hope you have learnt more than 9 Best Money Market funds In Kenya In 2022
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You can also  invest by buying shares 

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