A money market funds are a type of unit trust fund or a mutual fund that invests in low-risk and short-term debt securities. It is an investment that is ideal for low-risk investors who desire stability and security for the capital invested.
Money market funds in Kenya are regulated by the Capital Markets Authority (CMA).
In no particular order, here is a list of the best money market funds in Kenya.
1. Cytonn Money Market Fund
It is a product of Cytonn Asset Managers Limited, an affiliate of Cytonn Investments. Cytonn Money Market Fund invests in high-quality interest-bearing investments, fixed deposits, and near cash holdings in the Kenyan market.
Features of Cytonn Money Market Fund (KES)
It is the best starting point for first-time investors.
- No entry or exit fee
- Interest is compounded on a daily basis
- Capital is safe
- Competitive rates based on the market
Features of Cytonn Money Market Fund (USD)
It is an ideal investment option for investors who wish to invest directly using the US Dollar currency.
- No entry or exit fee
- Interest is compounded daily
- Capital is safe
- It provides a stable hedge against the depreciation of the Kenyan shilling.
2. CIC Money Market Fund
CIC Money Market Fund invests in highly liquid near cash interest-bearing instruments. The fund is ideal for investors looking to preserve their capital, earn daily interest on their low-risk investment, invest for a period of less than 1 year, and those looking for a safe place to park their funds for future projects.
- The minimum investment amount is Kshs. 5,000. The minimum additional amount is Kshs 1000.
- Zero initial fees.
- Access to your money is when required with a short notice of 2 to 4 working days.
- Monthly statement.
3. UAP Old Mutual Money Market Fund
- You can sign up for the UAP money market fund if you are 18 years and above.
- Minimum investment of Kshs 1000 and monthly contributions of at least Ksh 1000, without any restrictions to the maximum contributions.
- There is no fixed period for investing with the money market fund. The recommended period is however 2 to 3 years.
UAP calculates interest on investment daily and allocates it monthly. It also sends monthly statements with advice on progress and how to keep growing your investment.
4. Britam Money Market Fund
Britam money market fund helps one to plan for financial goals, either for setting up an emergency fund, saving for school fees or saving for business projects. An investor earns between 8-10% in interest as he or she builds savings.
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One can invest with Britam from as low as Kshs. 1000 and earn daily compounding interest. It is also easy to withdraw from Britam, usually within 48 hours and the money is sent to Mpesa or your bank account.
5. Zimele Money Market Fund
It is also called the savings plan. It allows one to save in a flexible and convenient setting at your own place.
Members’ contributions are usually pooled and invested in safe and high-yielding interest-bearing assets such as fixed deposits, treasury bills, and bonds.
- A minimum deposit of Ksh 100
- Competitive interest rates and enhanced safety of funds
- M-Pesa option for deposits and withdrawals.
- Interest compounded annually
- Online statements
- No minimum balance requirement
Location: Ecobank Towers, Muindi Mbingu Street, Nairobi.
Contacts: 0733 111 106, 0734 207 662, 0722 207 662
6. Sanlam Money Market Fund
Sanlam money market fund is an ideal investment option for individuals, corporates and joint investors.
It is suitable for customers who wish to invest their money over a short period (1-12 months), through regular or once-off savings.
- The minimum investment for an account is Ksh 2500.
- No initial fees are charged. It is free to set up an account.
- Funds are invested in high-quality interest-bearing assets, fixed deposits, and near cash holdings in the Kenyan market.
- The fund consists of compound interest that is calculated daily and distributed monthly into the client’s account.
- It is a low-risk fund with a risk rating of 0-1.6, based on Sanlam’s rating of 0-3.
7. Nabo Africa Money Market Fund
This fund seeks to maximize current income by primarily investing in a diversified portfolio of short-term debt securities and instruments while aiming to preserve capital and maintain a high liquidity degree.
Nabo recommends a minimum investment period of 3 months for your capital to experience optimal return impact.
8. Genghis Capital Money Market Fund
This is a conservative risk fund that is ideal for clients who have a low-risk appetite. Interest is computed and earned on a daily basis and credited to the client’s account monthly.
The minimum investment amount and additional top-up are Kshs 500.
9. NCBA Money Market Fund
This fund invests in high-quality interest-bearing investments, fixed deposits, and near-cash holdings in the Kenyan market.
- The minimum investment for each unit trust fund is Kshs 5,000
- The minimum investment additional amount is Kshs 5,000
- No joining fee is required
- A management fee of 2% per annum is charged
- The option of reinvesting into the fund to maximize returns through compounded growth is allowed.
- Interest is calculated daily and credited to the investor’s account on a monthly basis.
10. Stanlib Money Market Fund
Stanlib is a leading fund manager in East Africa. It is owned by Liberty Holdings Limited, one of the firms listed on the Nairobi Securities Exchange.
The Stanlib money market fund is a collective investment scheme that aims to maximize income while preserving capital and ensuring the liquidity of invested funds.
It invests in a wide range of highly marketable short-term debt securities such as treasury bills, and corporate financial instruments such as bankers’ acceptances.
The minimum initial investment is Kshs 10,000 and the minimum additional investment is Kshs 5,000.