Zimele Money Market Fund (What You Need to Know)

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Zimele money market fund or Zimele savings plan is licenced and regulated by the Money markets Authority.

The society allows investors to save in a flexible and convenient way through fund pooling.

The company operates as a collective investment scheme for investors. The money saved in the Trust Unit is channelled into various investments.

The money market fund is suitable for investors who are reluctant to take risks with a motive of investing capital, generating regular interest income and provide liquidity.

Benefits of saving with Zimele Money Market Fund.

1.Professional investment management.

As a unit of trust, Zimele has a team of investment managers who are competent to deliver the best portfolio for investors.

Investors are guaranteed good returns from the savings made.

2.Diversification

Saving with Zimele allows funds diversification. In that, the savings are pooled together with that of other investors which are spread across several investments in different markets.

Funds diversification widens the chances of obtaining good returns. Risks are minimal.  your earnings don’t depend on the performance of only one market.

3.Liquidity

The savings can be sold back to society as shares whenever you need finances back. The society then calculates the share prices based on the market value.

As an investor,  you have the flexibility of searching for new markets without limitations.

4. Security and Operational convenience

The unit trust operates a custodial account with standard chartered securities limited.

The organization holds all the assets of the unit trust. As an investor, your investment is secure and whatever risks may occur your funds will be refunded.

Also, Zimele allows investors to save regular contributions, which helps them gradually build a substantial capital base.

Types of Zimele money market fund Income plans

Zimele income plans are classified into:

1.Regular Income

Based on the principle amount, interest earned from the savings can quickly convert into a steady income paid every month.

Alternatively, you can continue to top up to increase your subsequent earnings.

the monthly income amount has no minimum. Investors can top up their account anytime by entering the target savings. From there, the monthly incomes will generate.

To join the Zimele regular income plan, you must be 18 years of age with an ID or passport. Have a minimum amount of Ksh100 for saving.

withdrawals once processed,  payments sent directly to member bank accounts within one week.

A member is free to either liquidate all or part or of their income.

Interfund transfers are allowed in writing dated and signed by the account holder.  chargeable administration fees may apply.

To place a standing order, you must fill in a standing form order form and a copy fo instructions given to the bank.

Hidden charges and withdrawal fees do not apply to the plan.

Funds send via mobile transfer services will attract standard charges applied by the service providers.

The principal amount in the money market fund is not subject to fluctuations during the investment period.

Read also: Money Market Funds In Kenya 

2. Retirement income

This plan is available to people at least 50 years of age or more to start saving.

The minimum period of the income is 10 years subject to renewal if not opted out from the plan.

A lump sum amount of Ksh600,000 income-tax-free after a successful saving.

Members are eligible to a monthly interest from the initial amount while keeping the capital for future events.

Features and benefits of the zimele money market savings plan.

The minimum amount of deposit is Ksh100 payable through the bank or Mpesa pay bill.

There is full transparency in service delivery no member is subject to hidden charges from the unit trust.

Bank statements and withdrawals are available online. Members can access them both online and at Zimele Unit Trust’s physical location.

Read also: Mutual Funds in Kenya

Advantages of the Zimele Income Plans

The savings can step in for emergencies such as hospital bills or even funerals if any occurs.

Family short-term financial needs, such as paying school fees, holidays, household goods, rent and many more can be met easily.

The Savings cater for long term goals, such as a deposit for homeownership, buying land or even a new car.

The earnings can manage business cash flow or even boost the business.

Building savings for chamas and other investments

The savings plan guarantees a 9.5 per cent interest rate per annum for the regular plan while the pension or retirement plan earn up to 11.5 per cent per annum.

As an investor, you can easily track the performance of your investment through the financial markets pages on the dailies, through the Zimele website or at their offices.

Saving is flexible, you can invest on regular intervals or lump sum amount in any frequency.

Read Also: Unit Trusts in Kenya

How to Join The Zimele Money Market Fund

There are three ways to join the Zimele money market fund:

  1. Children’s savings plan

To join this fund, you need to present the child’s full names, date of birth and birth certificate or passport.

The parents or guardians name, ID/Passport and phone number.

A minimum of Ksh1000 for investment.

2. Joint Application

For joint application, all you need is:

Present the names of both applicants, their ID/Passport numbers, email addresses and passport size photos.

Secondly, select the savings plan of your preference.

The initial investment amount of Ksh1000 or more.

3. Group Application

To join as a group the following is required:

A group name, a primary phone number and email address.

Select fund type and a present number of signatories.

A minimum of Ksh2500 for the principal investment.

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