The Britam Money market fund is an arm of the Britam Asset Managers. The unit trust was launched to meet the growing demand by new and existing customers who were interested in money market funds.
The Market Fund seeks to provide investors with a competitive interest rate and capital preservation in the short term.
The fund mainly invests in short term deposits which include: Government Treasury Bills, Treasury bonds, Commercial paper and bank deposits of less than 12 months maturity.
Once the registration is completed, investors have the flexibility to participate via the MPesa USSD code *778#.
Previously, investors had to invest a minimum of Kshs. 10,000 to get into the money market fund, with top-ups of Kshs. 5,000.
The fund mainly invests in short-term instruments. Investors earn a monthly interest depending on the principal amount of the investment.
The savings plan is also suitable for investors who have short-term savings goals.
Benefits of the Britam Money Market Fund.
The Fund preserve shareholders’ principal investment by investing in a diversified portfolio of high-quality.
Ordinarily, short-term money market investments provide current income. Investors to access their cash anytime they need through to the MPesa accounts.
The fund is convenient with flexible withdrawals within 48 hours through to your MPESA account.
There is transparency, investors have access to all the information they need on the underlying portfolio, including portfolio holdings.
The fund is also convenient for investors who would wish to diversify from single issuer risk, and access professional asset management and operational expertise.
Investors earn a daily compounding interest of 9- 11 per cent.
The Britam money market fund is an ideal investment. The cash invested can meet short term goals, for instance, paying school fees, paying car, mortgage or land.
The savings can pay for Chama or investment funds, family emergencies, welfares, weddings and other short-term projects.
The fund invests in money market instruments such as commercial papers, fixed deposits and treasury bills.
Read Also: Unit Trusts in Kenya Investment Guide 2019
How to Join The Britam Money Market Fund
There are two types of savings plan for the Britam Money Market Fund:
Individual Investment
To join as an individual investor in the money market fund you need a filled-in the individual application form.
Copy of ID or a current passport.
Your active bank details which comprise of a bank statement not more than three months old, a cheque leaf or a certified letter from the bank confirming the provided bank details are valid.
Valid residential address or a filled-in address verification letter provided by Britam.
Group/ Company Investment.
As a company or group investment, the following are requirements to join the fund:
A Filled-in company application form.
A certificate of incorporation of the company.
Resolution to invest in a particular plan.
The company’s active bank details which comprise of a bank statement not more than three months old, a cheque leaf.
Provide a certified letter from the bank for clarification as well as an Investment Funds cheque or deposit slip in the correct fund.
A copy of the original ID/Current Passport for all the authorized Representatives of the company.
Provide the Residential Addresses for all the authorized Representatives: Utility bill, not more than 3 months old(Water or Electricity Bill) or a filled-in Address Verification Letter provided by Britam.
Why You Should Consider The Britam Money Market Fund
It’s suitable for investors who are keen on low risks with high-interest portfolio.
The fund guarantees capital stability and immediate liquidity for investors.
Income accrues daily and can be reinvested. Investors have the freedom to opt-out of the fund whenever they are pleased with the assurance of getting their market value.
Investors can top-up and make partial or full withdrawals
Withdrawals take between 2-5 working days.
High annual yields of up to 15 per cent per annum. For instance, the annual yield for the period ended March 2019 accrued up to 10.31 per cent, proof that the investment offers good returns.
The published returns are net of 2% Annual Management fees but gross of 15% withholding tax
Minimum initial investment and the top amount is Ksh1000.00 which is easily achievable.
Britam often invests funds from money market pool in certain securities like bonds, near cash instruments, shares, treasury bills, bank deposits, and so forth.
Read also; Hedge Funds in Kenya: The Ultimate Guide
The money market unit trust is regulated and controlled by the Capital Markets Authority
The Britam money market fund has proven to be perfect for investors who are looking to invest money they intend for short-term purposes.
Other Money Market Funds include:
Hi Val,
I am a Kenyan living and working in the UK and would like to invest back home. How do I go about investing from a far distance. It will be my first time doing this and so would like your advice. I know the market is unstable at the moment but am interested and would like to have a go. I am interested in long, medium and long term investment.