Money market funds in Kenya have become increasingly popular as they provide investors with a low-risk investment option that still generates returns. Money market funds are a type of unit trust fund that pools funds from different investors and invests them in short-term debt instruments such as Treasury Bills and Commercial Papers, as well as money market instruments such as call and fixed deposits.
Currently, the top 5 money market funds in Kenya offer impressive yield percentages, with the 364-day and average yields increasing by 4.6 bps and 11.6 bps to 11.2 and 10.8 percent, respectively. Cytonn Money Market Fund has the highest pack with an impressive 11 percent effective annual rate followed closely by Etica Money Market Fund, which also offers an 11 percent yield. GenAfrica Money Market Fund is not far behind with an effective annual rate of 10.9 percent, while Dry Associates Money Market Fund and Apollo Money Market Fund offer yields of 10.8 and 10.6 percent, respectively.
These high yield percentages make money market funds an attractive investment option for individuals and institutions looking to generate returns on their short-term investments without exposing themselves to too much risk. Additionally, the fact that these funds are managed by professional fund managers who invest the pooled funds in a portfolio of securities with the aim of generating returns in line with the specific fund objectives, means that investors can be assured that their funds are in good hands.
Investing in money market funds in Kenya can be done with ease, as most of these funds have relatively low minimum investment requirements, making them accessible to a wide range of investors. With their low-risk investment options and impressive yield percentages, money market funds have become an increasingly popular investment option in Kenya, offering investors a chance to generate returns on their short-term investments without putting their capital at risk.