Want to preserve your cash?
Access your cash when you need it? and
Get a return that beats inflation
Then money market is your favorable investment 💸
How it works:
The institution collects money from thousands of investors—different amounts ranging from as affordable as Kshs 500.
The institution often a bank then pools the money together and assigns it to a fund manager.
The fund manager will use his knowledge to allocate the money into different assets, often low-risk assets: Commercial paper, Treasury bonds, Government Treasury Bills, and bank deposits.
Then the institution takes its cut for the management fee and will distribute the profits to the unit-holders proportionally.
Visit the company offering the money market.
Often they will explain the different products they have.
After choosing the product of your choice, they will proceed with Know Your Customer( KYC) and account opening.
Documents needed might vary between companies, but here are some standard documents:
i) Copy of ID or Passport
ii) Copy of KRA PIN
iii) Passport picture
iv) Copy of bank details (canceled cheque, ATM card copy or bank statement)
Different institutions have different requirements
Minimum account balance
Typically the bank deposits would track the 91 Day T-Bill rate. Larger banks are likely to price lower than the smaller banks due to their branch network that ensures they have cheap deposits.
Companies offering money market ✅
A good news article that compares the different companies that offer money market check it out.
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Disclaimer: The views expressed in this publication are those of the writers where particulars are not warranted. This publication is meant for general information only and is not a warranty, representation, advice or solicitation of any nature. Readers are advised in all circumstances to seek the advice of a registered investment advisor. Full Disclaimer