When you plan to invest, where do you put your money? Most people would say the bank, chama, with friends/family, stashed under the mattress… If your answer was any of these, there’s good news for you. You can park your cash in a stable, interest-bearing account in a Money Market Fund (MMF), while you plan your next financial move.
The reasons for this are manifold. First, MMFs give you compounded interest. This means that your money stays safe and grows as you wait to make your next big investment. You end up having more money to invest, or a monthly income for every extra day your money stays in the fund!
Also read: Managing Business Cash Flow with Money Market Funds (MMFs)
Putting your money in MMFs, unlike with chamas and friends/family, can protect you against risk. Giving your money to friends/family, keeping it at home, and sometimes even chamas might mean losing your money in one way or another. You also run a risk of not getting your money back. MMFs must be regulated by the Kenyan Capital Markets Authority (CMA), ensuring investor protection and oversight against fraud or mismanagement.
While banks may not pose significant fraud risk, your money is still at risk of losing value against inflation, not to mention the banking charges. If, say, you plan to undertake a construction project, the building materials will be slightly more expensive one year from now due to inflation.
If (for illustration purposes), you had KES 1M and put it in a bank, it would be worth KES 950K with 5% inflation. If you put the KES 1M in an MMF, you would have KES 1.12M+ at a 12% interest rate.
MMFs give you the flexibility to withdraw your money, unlike putting it in a fixed savings account. Need to access your funds? You can do so without major penalties or hassles. Alternatively, you have the option to reinvest the returns, letting them compound and grow even more. This flexibility allows you to make decisions based on your financial needs, giving you control over how you manage your funds.
When you place your money in an MMF, you’re giving yourself peace of mind knowing that it’s earning interest and not just sitting stagnant. You’re also protecting your cash from the risks of physical theft, inflation, or poor investment decisions. Having your money in a safe, interest-bearing fund provides confidence, reassurance and a sense of financial stability.
You don’t have to choose between security and growth. With the Jubilee Money Market Fund, you get both—a safe place to park your cash while earning attractive returns. It gives you the opportunity to make your next big investment with more money, or even to enjoy some passive income from the interest earned along the way.
The Jubilee Money Market Fund is available in Kenya Shillings and US Dollars and you can start with as little as KES 5,000 or USD 1,000.
To get started on the Jubilee Money Market Fund, SMS the word MMF to 24245 or dial *706*3# to talk to a Financial Advisor.
