Money market funds are a popular investment option in Kenya and are regulated by the Capital Markets Authority (CMA). Money market funds are mutual funds that invest in short-term, low-risk securities such as government treasury bills, commercial paper, and bank deposits. These funds aim to provide investors with a low-risk, low-return investment option that is more liquid than other types of investments.
List of 15 Best Money Market Funds in Kenya
There are several money market funds in Kenya, including those offered by banks, asset management companies, and unit trust schemes.
Some of the popular MMFs in Kenya include:
- Nabo Africa Money Market Fund
- Cytonn Money Market Fund
- Zimele Money Market Fund
- Britam Money Market Fund
- Apollo Money Market Fund
- CIC Money Market Fund
- Sanlam Money Market Fund
- Old Mutual Money Market Fund
- Madison Money Market Fund
- Genghis Capital Money Market Fund
- ABSA Money Market Fund
- NCBA Money Market Fund
- Madison Money Market Fund
- Kuza Money Market Fund
- Britam Money Market Fund
Investors can invest in money market funds through their stockbrokers or directly through the fund managers. The minimum investment amount varies depending on the fund but is typically between Ksh 1,000 and Ksh 10,000.
Benefits of Money Market Funds in Kenya
Money market funds in Kenya offer several benefits to investors, including:
- Low Risk: Money market funds invest in low-risk securities, making them a relatively safe investment option.
- Liquidity: Money market funds are more liquid than other investments, such as stocks or bonds. Investors can easily sell their shares in the fund and receive their money within a few days.
- Diversification: Money market funds invest in various securities, which helps spread the risk.
- Professional Management: Money market funds are managed by professional fund managers with experience managing low-risk investments.
However, investors should still do their due diligence before investing in a money market fund in Kenya. It is important to read the fund’s prospectus and understand its investment objectives, fees, and risks. It is also important to consider the fund manager’s track record and experience in managing money market funds.
Investors should also know the fees associated with investing in a money market fund. Money market funds charge management fees, trustee fees, and custodian fees. These fees can reduce the overall return on investment, so investors should carefully consider the fees before investing.
Final Thoughts
Money market funds in Kenya offer investors a low-risk, low-return investment option that is more liquid than other types of investments. Investors should do their due diligence before investing and carefully consider the fees associated with investing in a money market fund.
Overall, money market funds are a relatively safe and convenient investment option for investors looking to diversify their portfolios.
Besides MMFs, saccos are also great investment vehicles in Kenya. Check out our list of the best saccos in Kenya.
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