The Cytonn Money Market Fund in Kenya

Cytonn money market fund is a product of the Cytonn Asset Managers Limited (CAML). An affiliate company to Cytonns Investments PLC.

The money market fund invests in high-quality interest-bearing investments such as fixed deposits and near cash.

It is ideal for the risk-averse investors who lean towards stability and security for capital invested.

See also Money Market Funds in Kenya.

The main objective of the fund is to, obtain a high level of current income while protecting the investors’ capital and liquidity.

The funds are a powerful way to secure your financial future. Ranging from the relatively high levels of investment security and rates of return, the low investment risk, zero-entry fees and benefits of professional management.

Cytonn Money market Fund Features

There are no entry or exit fees applied. Investors are at free will to join or leave the investment.

Interest is calculated on daily basis and credited to the client’s account

Like an investor, you are guaranteed competitive rates based on the market.

The minimum investment amount is KSh1000 with no minimum top-up applied.

Only a 2 percent annual management fee is applied.

The client can invest via MPesa playbill 775093 through a client code given by the fund.

You can invest or withdraw up to an amount of KSh70,000 on a 24-hour system USSD code *809#

The fund provides capital preservation for investors.

How to Join The Cytonn Money Market Fund

You can join as an individual or joint application.

Below is a list of requirements you ought to fulfill to join the fund.

Individual Application

For individual application, the following is required:

  1. Personal information- this includes Name, contact details, ID/passport number, and residence.
  2.  Your employment status- this includes the present occupation and employer’s name or for the self-employed, state the business sector you are in.
  3. Select your preferred mode of contact and payment.
  4. Ksh1000 for investment.

You may also be interested to know about Government bonds and how they work.

Joint Application

A joint application applies to two or more people. The following are requirements to join the fund as joint investors.

  1. Personal information includes the names of both applicants, email addresses, ID/Passport, gender, physical location, and contact details.
  2. Employment information for both applicants
  3. Explain the source of funds to invest.
  4. Give out bank details, payment, and withdrawal methods.
  5. Identify the fund you want to invest in as well as the investment period.
  6. Disclose optional email indemnity.
  7. Do a risk assessment test
  8. Select signatories.
  9. Give financial advisor details.

Benefits of The Cytonn Money Market Fund

1. Low risk

Most importantly, the goal of planning for your future is. To create a favorable balance between the safety of the principal investment and generating an adequate return from it.

The key features of the Cytonn money market fund are that the principal is relatively secure.

Unlike other investment avenues such as equities that are typically high risk, a money market fund bears the low risk which makes it more secure.

2. High returns

The Cytonn money market funds offer high returns on investments.

The fund compounds investors’ interest daily which translates to competitive returns on investment.

Related reading: M-Akiba Bond: How to get started.

The fund generated an average return on investments of about 11.0 percent per annum over the last 12 months.

3. Economies of scale

The fund pools money from several investors

It puts money in different investments that would otherwise be out of reach for individuals. Thus, they benefit from the economies of scale created.

4. Professional management

Professional fund managers control the money market. They provide expert information that benefits investors for instance,  on how to secure future financial stability.

Professional fund management relieves investors of the burden of research and decision-making. That then leaves the investors free to concentrate on other pursuits.

5. Liquidity

Money market funds are typically highly liquid.

The money you invest in the fund goes to trading in securities that are in fairly high demand.

This means as an investor, you can get your money within a few business days as well as buy and sell them with comparative ease

6. Funds Preservation

As a low-risk fund, It seeks to preserve the Investor capital.

They as well get above-average returns a outperforms the yield on all available money market instruments like Treasury bills and fixed deposits.

Through this, they are able to maintain a healthy diversified portfolio.

Other types of money market funds that are available in Kenya include:

  1. UAP Old Mutual money market fund.
  2. The CIC Group money market fund.
  3. Zimele
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