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Money Markets funds are low- risk short-term mutual investment schemes using instruments such as Securities, Cash and Cash equivalents. All Money Markets Funds Managers must be regulated by The Capital Market Authority.
Money Markets funds are ideal for investors who want to preserve their capital for a short period of time while earning some interest as they buy time for future investments.
Advantages
There are a number of advantages of investing in a Money Market Fund:
Professional Fund Management- as the fund is managed by investment experts
Diversification- With a relatively small investment, investment in a money market fund provides access to a broad spread of securities thus minimizes financial risk
Potential for Higher returns- through pooling of funds and professional investment management, money market funds potentially provide superior returns than comparable products in the longer term
Flexibility- you are able to easily move funds between various other collective investment schemes like the Balanced and Equity Fund
Accessibility- the money market fund is liquid and easily accessible, meaning you can withdraw funds at short notice
Safety- the fund is regulated by the Capital Markets Authority and is also overseen by a dedicated trustee and custodian whose role is to ensure that the fund manager acts in the investors’ best interest and conforms to best practice
Disadvantage
Money markets funds does not have high interest earnings as it involves low- risk investment and short duration of investment.
Investors looking for Best performing Money Market Funds Managers in Kenya , can check at the table below for their perusal. Table source: cytonn
Money Market Fund Yield for Fund Managers as published on 7th May 2021 | |||
Rank | Fund Manager | Daily Yield | Effective Annual Rate |
1 | Cytonn Money Market Fund | 10.01% | 10.53% |
2 | Nabo Africa Money Market Fund | 9.65% | 10.09% |
3 | Zimele Money Market Fund | 9.56% | 9.91% |
4 | Alphafrica Kaisha Money Market Fund | 9.41% | 9.82% |
5 | GenCapHela Imara Money Market Fund | 9.16% | 9.59% |
6 | Madison Money Market Fund | 9.13% | 9.55% |
7 | CIC Money Market Fund | 8.97% | 9.29% |
8 | Sanlam Money Market Fund | 8.98% | 9.22% |
9 | Dry Associates Money Market Fund | 8.60% | 8.95% |
10 | Co-op Money Market Fund | 8.31% | 8.66% |
11 | British-American Money Market Fund | 8.29% | 8.61% |
12 | Apollo Money Market Fund | 8.43% | 8.50% |
13 | NCBA Money Market Fund | 8.04% | 8.36% |
14 | ICEA Lion Money Market Fund | 8.02% | 8.35% |
15 | Old Mutual Money Market Fund | 6.68% | 6.89% |
16 | AA Kenya Shillings Fund | 5.53% | 5.67% |
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