Why should you invest in Old Mutual Money Market Fund ?Here are facts
Old Mutual Money Market Fund invests only in money market instruments spread between institutions of repute. The fund aims to provide steady growth of income, reasonable level of current income and provide stability for capital invested.
Fund Objectives
The objective of the Old Mutual Money Market Fund is to generate total return through investing in a range of debt securities, fixed deposit instruments and near cash in the Kenyan market, while providing conservative risk exposure for investors.
Investment Portfolio
The securities to be invested in the Old Mutual Money Market Fund and their book value limits as authorised by the Act are:
- Securities issued by the government of Kenya – up to 80%
- Securities listed on a stock exchange in Kenya – up to 80%
- Off-shore deposits – up to 10% (this includes debt securities held in Dollar, Euro or Pound currencies)
- Near cash deposits – up to 10%
Risk Profile
This fund is suitable for the conservative low risk investor who would like a safe parking place for their funds. It is ideal during times of stock market turbulence and uncertainty and perfect for investors who would like to benefit from the yield / interest earned. The client is advised to invest their money for at least a year.
Fund Prices
- The price of the Old Mutual Money Market Fund is KShs 1 and remains static.
- The yield changes on a daily basis and is the interest portion earned daily by the assets purchased by the fund for the investor.
- Interest is calculated on a daily basis, and credited to the investor’s account monthly.
Distribution
The Old Mutual Money Market Fund will distribute income on a monthly basis. Income distributed in the Money Market Fund consists of interest accrued from the purchased assets of the fund.
For more information on this fund, please view the Fund Fact Sheet. Please note that the minimum lump sum investment for this fund has been reduced to KShs 1,000.
I am actually one of many Kenyans who invested in Old Mutual Money Market Fund, and here is my experience.
In 2015 I wanted to buy a car but didn’t have enough cash to buy one.My friend advised me to save the money as I planned to top up until it was enough to import the vehicle. At first I thought he would suggest Fixed Deposit Account but he surprised me when he said Money Market Fund.
Since I used to hear nasty stories about Insurance companies, I resisted. Two days later, he again approached me, this time with a statement from Old Mutual. What I saw shocked me.For one year he had earned Ksh 123,000 from his Ksh 1 million investment. If this money was invested in a savings account, I am sure he couldn’t earn more than Ksh 20,000 in interests.
I decided to give old Mutual a benefit of doubt. I saved Ksh 20,000 in the Money Market fund. After I received the first month’s statement, I ordered that they send me interest earned on the money so that I can confirm it’s not a pyramid scheme. Indeed I receive the interest one day after I wrote the email. That was when I decided to save all my savings in the insurance company.
Surprisingly, after six months my Ksh 600,000 had earned Ksh 70,000 in interest alone. I decided to withdraw the Ksh600,000 and left the Ksh70,000 to earn additional interest. Until now I am strongly glued to Old Mutual and made several millions.
