Faulu Microfinance Bank has launched its Money Market Fund (MMF), which offers a competitive effective annual yield of 16.32%.
The Faulu MMF, which is registered by the Capital Markets Authority, invests in money-market instruments such as short-term government securities, bank deposits and high-grade corporate issues securities.
Faulu Microfinance Bank, CEO, Julius Ouma says customers can invest as low as Kshs 1,000.
To begin investing, prospective clients are required to open MMF accounts and a Faulu transactional account (if not an existing customer). A holding account will then be created through the OMIG’s platforms, and furnished through deductions from the customer’s account.
“We are pleased to introduce our Money Market Fund, which is part of the innovative financial solutions we are creating for our customers. This launch broadens the access of our clients to high-quality investment opportunities,” said Ouma.
Money market funds are renowned for their advantages, including enhanced safety, liquidity, and the ability to diversify investments. Investors can benefit from competitive interest returns while maintaining accessibility to their funds, thereby balancing profitability with financial flexibility.
“The Old Mutual Group has extensive experience in money market fund management stretching over decades. Our teams of fund managers will be fully available to give guidance across a diversified portfolio of money market instruments,” said Old Mutual Investment Group Managing Director, Anthony Mwithiga.
The Faulu MMF has been launched a month after receiving a capital injection of Kshs 900 million from the Old Mutual Group.