20 Best Money Market Funds In Kenya For 2023
Money market funds are mutual funds that invest in short-term debt instruments such as treasury bills, commercial paper, certificates of deposit, etc.
Investing in money market funds has become popular amongst Kenyan investors, who are continually seeking avenues to enhance their wealth and reduce risk. This form of investment provides a balance of stability, liquidity, and competitive returns, making it an excellent choice for individuals looking for a reliable and hassle-free way to expand their financial reserves. This comprehensive guide highlights the 20 best money market funds in Kenya, underscoring their characteristics, advantages, and prospective yields.
Understanding Money Market Funds
A money market fund is an investment scheme that channels resources into short-term debt securities, often maturing in less than a year. These can include government bonds, treasury bills, commercial paper, cash equivalent securities, and certificates of deposit. The aim is to safeguard capital and generate income. The Capital Markets Authority (CMA) regulates these funds in Kenya. They are regarded as low-risk investments, ideal for preserving cash in a liquid, safe environment.
Why Consider Money Market Funds?
1. Safety
Money market funds are generally considered one of the safest investment options available, as they invest in short-term debt instruments backed by government entities' full faith and credit.
2. Liquidity
These funds offer high liquidity, allowing you to convert your investment into cash quickly. This feature is particularly beneficial for investors needing quick access to their funds.
3. Yield
Money market funds offer relatively higher yields than secure investments such as savings accounts, making them attractive for investors looking for higher returns.
4. Tax Advantages
Money market funds generally attract lower taxes than other investment types, such as stocks and bonds.
Top 15 Money Market Funds in Kenya
1. Cytonn Money Market Fund
Known for its high yield and low fees, the Cytonn Money Market Fund has positioned itself as one of Kenya's highest-performing money market funds.
2. Adam Money Market Fund
This fund, managed by Africa Diaspora Asset Managers (Adam Capital), offers accessibility and flexibility, providing a high return rate and the freedom to borrow against your units.
3. Britam Money Market Fund
Britam Money Market Fund is a top contender offering high yields with daily compounding.
4. Absa Money Market Fund
Though relatively new, this fund has quickly gained popularity due to its safety, liquidity, and competitive interest rates.
5. Madison Money Market Fund
Ideal for emergency funds, capital preservation, or short-term investments, the Madison Money Market Fund offers stability and flexibility.
6. Sanlam Money Market Fund
With higher returns than average bank fixed deposit accounts, Sanlam invests in money market securities, offering competitive yields.
7. CIC Money Market Fund
The CIC Money Market Fund offers low-risk investments in near-diversified cash, interest-bearing instruments in the Kenyan market.
8. CBA Group Money Market Fund
CBA Group Money Market Fund offers stability and security and is an excellent choice for low-risk investors.
9. Zimele Money Market Fund
This fund provides:
- Flexibility.
- Allowing you to save according to your needs.
- Investing in safe high-yielding assets.
10. Alpha Africa Asset Managers' Alpha Imaara Fund
Offering competitive interest rates and quick access to your funds, Alpha Imaara Fund is a great choice for investors who prioritize liquidity and security.
11. Old Mutual Money Market Fund
Old Mutual, a veteran in the investment sector, offers a money market fund that guarantees excellent returns and capital safety. The fund invests in short-term, high-quality debt instruments, making it an ideal choice for risk-averse investors.
12. Dry Associates Money Market Fund
Dry Associates' fund stands out with its ease of access and attractive returns. The company's experience and strategic investment approach provide a sturdy platform for healthy financial growth.
13. Stanlib Money Market Fund
Stanlib Money Market Fund provides a high-yield, low-risk investment option. This fund is known for its robust portfolio of government securities and financial instruments from top-tier companies.
14. ICEA Lion Money Market Fund
With a focus on maintaining capital stability, providing liquidity, and generating income, the ICEA Lion Money Market Fund offers investors a secure option to grow their wealth.
15. Apollo Money Market Fund
Rounding out our list, Apollo Money Market Fund presents an excellent opportunity for individuals and corporates alike to earn high returns on investments while enjoying the benefits of instant access and minimum risk.
TABLE: Top 20 Money Market Funds in Kenya
| Fund Name | Minimum Investment | Annual Interest Rate | Annual Management Fee |
|---|---|---|---|
| Cytonn Money Market Fund | Ksh 1,000 | 11.0% | 1.5% |
| Adam Money Market Fund | Ksh 100 | Up to 10% | N/A |
| Britam Money Market Fund | Ksh 1,000 | 8-10% | 2% |
| Absa Money Market Fund | Ksh 1,000 | 9.63-9.91% | 1.75% |
| Madison Money Market Fund | Ksh 5,000 | 9.62% | 2% |
| Zimele Money Market Fund | Ksh 100 | 9.56% | 2% |
| Sanlam Money Market Fund | Ksh 2,500 | 9.53% | 1.2% |
| Apollo Money Market Fund | Ksh 1,000 | 9.4% | Up to 2% |
| Nabo Africa Money Market Fund | Ksh 1,000,000 | N/A | N/A |
| Old Mutual Money Market Fund | Ksh 5,000 | 9.2% | Up to 3.37% |
| Equity Bank Money Market Fund | Ksh 1,000 | 10-15% | N/A |
| Dry Associates Money Market Fund | N/A | 9.1% | N/A |
| NCBA Bank Money Market Fund | Ksh 5,000 | 9% | N/A |
| Co-op Money Market Fund | N/A | Up to 9% | N/A |
| Genghis Capital Money Market Fund | Ksh 500 | 8.9% | 2% |
| CIC Bank Money Market Fund | Ksh 5,000 | 8.71% | 2% |
| ICEA Money Market Fund Kenya | Ksh 500 | 8.6% | 2% |
| Orient Money Market Fund Kenya | Ksh 5,000 | 8.7% | 2% |
| African Alliance Kenya Shillings Fund | N/A | 8% | 1% |
| Amana Money Market Fund Kenya | N/A | N/A | 0.00% |
READ ALSO: Treasury Bills in Kenya: How to Register, Invest, and Available Interest Rates
Conclusion: Choosing the Right Fund for Your Needs
Choosing the right money market fund requires careful consideration of your financial goals, risk tolerance, and the time you have to invest. All the funds on this list are reputable and regulated by Kenya's Capital Markets Authority (CMA), ensuring your investments are safe. However, returns can fluctuate, and it's crucial to understand that past performance does not guarantee future results.
To make an informed decision, consider speaking with a financial advisor who can provide tailored advice based on your financial situation and goals. With the proper guidance and strategic investment, a money market fund can be a rewarding way to secure and grow your wealth in Kenya.
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