Investing In Money Market Fund in Kenya: 6 Advantages and 2 Disadvantages

Investing in Money Market Fund in Kenya is a good business idea. There are more advantages than disadvantages on why you should invest. Find out why you need to invest in this article.

5 Advantages Of Investing In Money Market Fund in Kenya

• Easy way to help you develop a saving culture

Money Market Fund (MMF) is the ideal place to invest your money if you are having a hard time saving. It allows you to top up money anytime you want, either daily, weekly, or monthly, whichever period works for you. It is also a great way to help you avoid much spending because having money in cash encourages a person to spend unlike having it saved. Most important, the Money Market Fund has barriers to stop a person from accessing their money any time they want.

• Requires a small amount for one to start

Investing in money market fund in Kenya require from as low as KES 3,000 or less to have an account with them unlike other types of investments that require more than that to have an account with them. Therefore, it is possible for low-income earners to also invest with the companies. Interestingly, Kenyans with “hand to mouth” jobs have a chance to invest because they can deposit the little they get either on a daily or weekly basis.

• One can easily access his/her funds

Investing in money market fund in Kenya, one can be sure to access his/her funds whenever there is an emergency if they save the money as an emergency fund. With most Money Market Fund companies, you can get your money between 3-5 working days. Some companies even allow free withdrawal once a month, and you get both your money and the interest earned.

• You can easily re-invest your money and interest earned

From your comfort zone, you can reinvest your money. A person just needs to request their Money Market Fund Manager to reinvest the both their initial deposit and the interest earned. It is easier with unit trust because when a person invests in shares, many transactions are involved when reinvesting.

• Money Market Fund are good for short-term goals

If you are planning to save up for a wedding, a vacation, or maybe school fees, these kinds of short-term goals require a highly liquid account. The interest earned in investing in money market fund in Kenya is much higher compared to the one earned when saving up in banks, unless the money is saved in a fixed deposit account.

• Money Market Fund have high liquidity

There is high liquidity in Money Market Fund because for them, they are usually investing their money in short-term assets such as treasury bills, which have maturities of less than a year. This makes Money Market Fund liquid compared to investing in long-term securities such as bonds.

• It is a low-risk type of investment.

• Easier for beginners to start investing.

• It beats inflation, and there is security on your money.

2 Disadvantages Of Investing In Money Market Fund In Kenya

• Higher expenses are incurred

Money Market Fund have higher expenses in terms of the various fees applied. There is a management fee and withdrawal fee when withdrawing your money, and transfer fee. If a company charges higher fees, then you are more likely to have low returns and the investment made will not be of much as expected.

• Has a high purchasing power.

Examples Of Top Companies While Investing In Money Market Fund In Kenya

• Britam Money Market Fund

• Zimele Money Market Fund

• Sanlam Money Market Fund

• CIC Money Market Fund

• Genghis Capital Money Market Fund

• ICEA Lion Unit Trust

• Old Mutual Kenya Unit Trust

• Cytonn Investment Unit Trust  

• Nabo Africa Money Market Fund

• Alphafrica Kaisha Money Market Fund

• Gencaphela Imara Money Market Fund

Read our articles; Money Market Fund In Kenya: A Beginner Understanding and Money Market Funds in Kenya: 5 Factors To Consider Choosing a Perfect Company, to know what is required and the process. The above examples are not arranged in order of their competence or performance in the market. It is just a list of some of the known Money Market Fund companies in Kenya.

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