In 2024, money market funds in Kenya have gained popularity among investors looking for safe and profitable ways to grow their money. These funds invest in short-term, low-risk financial instruments, making them a great option for those who want to earn better returns than traditional savings accounts. This article highlights the top 15 money market funds in Kenya, showcasing their features and returns to help you make informed investment decisions.
Key Takeaways
- Money market funds are a safe investment option for earning higher returns.
- The Lofty Corban Money Market Fund currently offers the highest yield in Kenya.
- Most funds have low minimum investment requirements, making them accessible to many.
- Investors should consider the daily average yields when choosing a fund.
- Liquidity is a key feature, allowing quick access to funds when needed.
1. Etica Money Market Fund
The Etica Money Market Fund is a top choice for investors looking to earn a good return while keeping their capital safe. The fund aims to provide a high level of current income while protecting the investor’s capital. With a daily average yield of 16.62%, it stands out among other funds in Kenya.
Key Features:
- Minimum Investment: You can start investing with as little as Ksh 100.
- Liquidity: The fund offers high liquidity, allowing you to access your money easily.
- No Lock-in Period: You can withdraw your funds whenever you need them.
- Daily Compounding: Interest is credited daily, helping your investment grow faster.
Performance Overview:
| Feature | Details |
|---|---|
| Daily Average Yield | 16.62% |
| Minimum Investment | Ksh 100 |
| Lock-in Period | None |
| Interest Compounding | Daily |
Investing in the Etica Money Market Fund can be a great way to start your investment journey, especially for beginners.
Considerations:
- While the fund offers attractive returns, it’s important to remember that all investments come with risks. The value of your investment can fluctuate based on economic factors.
- Larger investments may yield higher returns, so consider your financial goals when investing.
- Always assess your risk tolerance before making investment decisions.
2. Lofty Corban Money Market Fund
The Lofty Corban Money Market Fund has consistently been a top performer in Kenya’s financial landscape. For the third month in a row, it achieved an impressive average daily yield of 16.92%, leading to a net return of 14.38% after tax deductions.
Key Features
- Low minimum investment: You can start with just KES 1,000.
- High accessibility: Withdrawals can be made on short notice.
- Capital preservation: Your initial investment is safeguarded.
- Interest compounding: Earnings grow over time.
- Diverse investments: The fund invests in various interest-bearing instruments, including bank deposits, Treasury bills, and commercial papers.
Performance Overview- Comparing To Other Top MMFs.
| Fund Name | Daily Average Return (%) | Net Return (%) |
|---|---|---|
| Lofty Corban Money Market Fund | 16.92 | 14.38 |
| Etica Money Market Fund | 16.62 | 14.13 |
| Cytonn Money Market Fund | 16.19 | 13.76 |
The Lofty Corban Money Market Fund stands out for its strong performance and investor-friendly features. It is an excellent choice for those looking to grow their savings with minimal risk.
3. Apollo Money Market Fund
The Apollo Money Market Fund is a popular choice among investors, offering a solid average daily return of 15.65%. This fund has some attractive features that make it appealing for both new and experienced investors.
Key Features:
- Low entry barrier: You can start investing with just KES 1,000.
- Flexible top-up options: Investors can add funds through cheques, cash deposits, standing orders, or direct debit orders.
- Investment strategy: The fund focuses on low-risk investments, including fixed deposits, T-bills, commercial paper, government bonds, and corporate bonds.
Performance Overview:
| Fund Name | Daily Average Return (%) | Net Return (%) |
|---|---|---|
| Apollo Money Market Fund | 15.65 | 12.84 |
Investing in the Apollo Money Market Fund can be a smart way to grow your savings while keeping risks low.
Overall, the Apollo Money Market Fund is a great option for those looking to earn a steady return with minimal risk. Its low minimum investment and flexible top-up options make it accessible for many investors.
4. Cytonn Money Market Fund
Cytonn Money Market Fund is a popular choice among investors, holding a strong position in the market. With an average annual yield of 11.09%, it offers a solid return on investment. To start investing, you need a minimum of KES 1,000, and you can make additional contributions from as low as KES 100.
Key Features:
- No entry or exit fees: This makes it easier for investors to manage their funds without worrying about extra costs.
- Quick withdrawals: Investors can access their money when they need it.
- Daily interest accrual: Interest is earned daily and compounded monthly, allowing your investment to grow steadily.
- Easy mobile sign-up: You can register by simply dialing *809#.
Performance Overview:
| Month | Average Yield (%) |
|---|---|
| September 2024 | 16.72% |
| August 2024 | 16.21% |
| July 2024 | 16.04% |
Cytonn Money Market Fund is a great option for both new and experienced investors looking to grow their savings with minimal risk.
In summary, Cytonn Money Market Fund stands out for its competitive yields and user-friendly features, making it an attractive choice for anyone looking to invest in money market funds in Kenya.
5. Nabo Money Market Fund
Nabo Money Market Fund is a great choice for those looking to grow their portfolio steadily. With an average daily yield of 15.35%, it stands out among other funds. Here are some key features:
- Minimum Investment: KES 100,000 for new investors.
- Top-Up Amount: Subsequent investments can be made with a minimum of KES 10,000.
- Liquidity: The fund offers high liquidity, making it easy to access your money.
Key Features
| Feature | Details |
|---|---|
| Daily Interest Accrual | Yes |
| Compounding | Monthly |
| Initial and Redemption Fees | None |
| Recommended Investment Period | At least 3 months for optimal returns |
| Investment Type | Short-term debt securities and instruments |
Nabo Money Market Fund is best suited for individuals who seek to grow their portfolio gradually. It provides a safe and reliable way to invest your money while earning daily interest.
6. GenAfrica Money Market Fund
GenAfrica Money Market Fund has shown a strong performance, currently offering an impressive average effective annual yield of 15.26%. This fund is known for its flexibility and user-friendly features, making it a popular choice among investors.
Key Features:
- No initial fees: Investors can start without any upfront costs.
- Unlimited withdrawals: You can access your funds whenever you need them.
- Monthly email statements: Stay updated with your investment through regular statements.
- Easy sign-up and top-up: The GenAfrica Unit Trust portal allows for simple account management.
Performance Overview:
| Feature | Details |
|---|---|
| Average Annual Yield | 15.26% |
| Minimum Investment | No minimum |
| Withdrawal Limitations | None |
Investing in GenAfrica Money Market Fund can be a great way to enhance your financial growth while maintaining liquidity. This fund is designed to cater to both new and experienced investors.
7. Enwealth Money Market Fund
Enwealth Money Market Fund is a popular choice among investors, offering a daily average yield of 14.75%. This fund is managed by Enwealth Financial Services and is known for its accessibility and liquidity.
Key Features:
- Low Entry Barrier: You can start investing with a minimum of KES 1,000.
- High Liquidity: Quick liquidations are available, usually within 2 days.
- No Initial Fees: There are no preliminary charges or redemption fees.
- Daily Interest Declaration: Interest is declared daily and credited monthly.
Benefits of Investing in Enwealth MMF:
- Safety: The fund invests in low-risk assets, ensuring the safety of your capital.
- Flexibility: Investors can make top-ups easily, enhancing their investment.
- Transparency: Daily interest declarations keep investors informed about their earnings.
Investing in a money market fund like Enwealth can be a smart way to grow your savings while keeping your money safe and accessible.
8. Kuza Money Market Fund
The Kuza Money Market Fund is a popular choice among investors, known for its strong performance and reliability. It has an average effective annual return rate of 10.16%, making it a competitive option in the market.
Key Features
- Minimum Investment: The initial investment required is KES 5,000, with subsequent top-ups starting at KES 1,000.
- High Liquidity: Investors can access their funds easily, ensuring flexibility.
- Investment Strategy: The fund primarily invests in short-term, interest-bearing securities, including T-bills, corporate bonds, and bank deposits.
Performance Overview
| Fund Name | Average Daily Return (% p.a.) |
|---|---|
| Kuza Money Market Fund | 15.73 |
| Other Competitors | Varies |
Why Choose Kuza Money Market Fund?
- Preservation of Capital: The fund focuses on maintaining the value of your investment.
- Accessibility: With a low minimum investment, it’s suitable for new investors.
- Regular Updates: Investors receive monthly statements to track their investments.
The Kuza Money Market Fund is an excellent option for those looking to grow their savings while keeping their investments safe and accessible.
9. Madison Money Market Fund
Madison Money Market Fund is a popular choice for investors looking for a safe place to grow their money. With an average annual yield of 14.50%, it offers competitive returns. This fund is managed by Madison Investment Managers Limited and is known for its reliability and performance.
Key Features:
- Minimum Investment: You can start with as little as KES 1,000.
- Liquidity: The fund allows easy access to your money, making it a flexible option.
- Daily Compounding: Interest is compounded daily, which helps your investment grow faster.
Performance Overview:
| Fund Name | Daily Average Return (% p.a.) | Net Return (% p.a.) |
|---|---|---|
| Madison Money Market Fund | 14.50 | 12.33 |
Why Choose Madison Money Market Fund?
- Stability: It invests in low-risk assets, ensuring your capital is safe.
- Accessibility: You can easily withdraw your funds when needed.
- Growth Potential: Daily compounding means your money can grow quickly.
Madison Money Market Fund is a great option for those who want to earn better interest than a regular savings account while keeping their money safe.
10. Co-op Money Market Fund
The Co-op Money Market Fund, managed by the Cooperative Bank, has shown a solid performance with an average annual yield rate of 9.95%. This fund is a great option for investors looking for a reliable place to grow their money. Here are some key features:
- Minimum Initial Investment: KES 2,000
- Management Fees: 0.9%
- Access to Funds: Withdrawals can be made within 2-3 business days
- Investment Options: Funds are primarily invested in T-bills, corporate notes, bank fixed deposits, and bank call deposits.
Key Benefits of Co-op Money Market Fund
- Liquidity: Investors can access their funds quickly, making it a flexible option.
- M-Pesa Deposits: The fund allows deposits via M-Pesa, making it convenient for many users.
- No Limit on Top-Ups: Investors can add more funds without restrictions, allowing for growth over time.
Investing in the Co-op Money Market Fund can be a smart choice for those seeking a balance between safety and returns. The fund aims to provide a steady income while preserving capital.
11. Jubilee Money Market Fund
Jubilee Money Market Fund is a popular choice among investors looking for a safe and reliable investment option. With an average effective annual yield of 10.25%, it ranks sixth among money market funds in Kenya. Here are some key features of the fund:
- Safety of initial capital: Your investment is protected.
- High liquidity: You can access your funds easily.
- Monthly compounded interests: Earnings are added to your investment every month.
Performance Overview
| Fund Name | Daily Average Return (% p.a.) | Net Return (% p.a.) |
|---|---|---|
| Jubilee Money Market Fund | 14.98 | 12.73 |
Investing in money market funds like Jubilee can be a smart way to grow your savings while keeping your money safe.
In summary, Jubilee Money Market Fund offers a solid option for those looking to invest in a low-risk environment while enjoying decent returns. It’s a great choice for anyone considering side hustles or additional income streams in 2024.
12. GenCap Hela Imara Fund
The GenCap Hela Imara Fund is a popular choice among investors, offering a solid average daily yield of 14.47%. This fund is designed for those looking to grow their savings with a minimum initial investment of KES 500. Here are some key features:
Key Features:
- Minimum Investment: KES 500, with additional top-ups starting at KES 500.
- Capital Preservation: Investments are made in secure, short-term assets.
- Daily Interest Computation: Interest is calculated daily and credited monthly.
- Management Fee: 2% per year of funds under management.
- Easy Sign-Up: You can register via the G-Kuze app or by dialing *895#.
Benefits of Investing:
- Accessibility: Low minimum investment makes it easy for new investors.
- Liquidity: Quick access to your funds when needed.
- Safety: Focus on secure investments helps protect your capital.
Investing in the GenCap Hela Imara Fund can be a great way to earn returns while keeping your money safe. It’s ideal for those who want to start small and grow their investments over time.
Overall, the GenCap Hela Imara Fund stands out for its balance of accessibility and potential returns, making it a strong contender in the Kenyan money market fund landscape.
13. Sanlam Money Market Fund
The Sanlam Money Market Fund is a solid choice for investors looking for a reliable option. It offers an average daily yield of 14.11%, making it competitive in the market. To start investing, you need an initial deposit of KES 2,500, with subsequent top-ups of KES 1,000.
Key Features:
- No initial fees: Setting up an account is free.
- Easy liquidity: You can access your funds quickly.
- Capital retention: Your initial investment is safe.
- Daily interest calculation: Interest is calculated daily and compounded monthly.
- Investment in quality assets: Funds are placed in high-quality interest-bearing assets, fixed deposits, and near-cash holdings in Kenya.
- Monthly updates: You receive statement updates via email.
Investing in the Sanlam Money Market Fund can be a great way to grow your savings while keeping your capital secure.
Summary Table
| Feature | Details |
|---|---|
| Average Daily Yield | 14.11% |
| Initial Deposit | KES 2,500 |
| Subsequent Top-ups | KES 1,000 |
| Interest Calculation | Daily, Compounded Monthly |
| Account Setup Fee | None |
14. Absa Shilling Fund
The Absa Shilling Fund is a great choice for those looking for a low-risk investment option. It offers an average return of 13.58%, making it appealing for conservative investors. Here are some key features of the fund:
- Minimum Investment: KES 2,000 to start, with no limit on additional deposits.
- Liquidity: Investors can access their funds within 2-3 business days.
- Investment Strategy: Funds are primarily invested in T-bills, corporate notes, and bank deposits.
Performance Overview
| Fund Name | Average Daily Return (%) |
|---|---|
| Absa Shilling Fund | 13.58 |
The Absa Shilling Fund is designed for those who prioritize safety and steady returns over high-risk investments. It’s a solid option for anyone looking to grow their savings with minimal risk.
15. African Alliance Kenya Money Market Fund
The African Alliance Kenya Money Market Fund (AAKMMF) is a popular choice among investors, offering a competitive average annual yield of 10.09%. This fund has seen a slight drop in its ranking but remains a solid option for those looking to invest in money market funds.
Key Features:
- Minimum Investment: KES 100,000 to start, with no limit on additional top-ups.
- No Entry Charges: Investors can enter the fund without any initial fees.
- Investment Strategy: The fund primarily invests in Treasury bills issued by the Kenyan government, along with other short-term securities like banker’s acceptance and commercial papers.
Benefits of Investing:
- Liquidity: The fund allows for easy access to your money when needed.
- Tax Efficiency: Income earned is distributed to unit holders and taxed according to individual tax status, avoiding direct tax liabilities for the fund itself.
- Safety: Investments are made in low-risk securities, providing a level of security for your capital.
Investing in the African Alliance Kenya Money Market Fund can be a wise choice for those seeking a balance between risk and return.
Overall, the African Alliance Kenya Money Market Fund is a reliable option for investors looking to grow their savings with minimal risk.
Conclusion
In summary, the money market funds in Kenya for 2024 present a great opportunity for investors looking to earn better returns on their savings. With options like the Etica Money Market Fund leading the way, there are many choices available that cater to different investment amounts and risk levels. It’s important to remember that while these funds can offer good returns, they also come with some risks. Therefore, potential investors should carefully consider their options and choose a fund that aligns with their financial goals. Overall, investing in money market funds can be a smart way to grow your money in a safe and effective manner.
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Frequently Asked Questions
What are money market funds?
Money market funds are a type of investment that pools money from many people to invest in safe, short-term financial assets like bank deposits and government bonds.
How do I invest in a money market fund?
To invest in a money market fund, you usually need to open an account with a fund manager and deposit a minimum amount of money, which can vary by fund.
Are money market funds In Kenya safe?
Yes, money market funds are generally considered safe because they invest in low-risk assets. However, there is still some risk involved.
What returns can I expect from money market funds?
Returns from money market funds can vary, but they often provide better interest rates than regular savings accounts. As of 2024, some funds in Kenya are offering yields around 14%.
Can I withdraw my money anytime from a money market fund?
Most money market funds allow you to withdraw your money at any time, but some may have specific rules or fees.
What should I consider before investing in a money market fund?
Before investing, consider the minimum investment amount, the fund’s fees, its historical performance, and your own financial goals.
