Truth about KCB Money Market Fund in Kenya

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Money Market Fund is the best investment to make in Kenya if you want to make passive income.KCB Bank offers you the opportunity to invest as little as Ksh 5,000. Their annual interest rate is 10.50%. The interest is calculated daily. Top up amount is as low as Ksh 1,000.

Even if your monthly salary is Ksh 15,000, you can invest in Money Market Fund. One advantage of investing in Money Market Fund is high interest rate.KCB’s interest rate is 10.50%: if you save in fixed deposit account, the interest rate will be less than 8% per annum.

Another advantage is that your money is safe. Money Market Fund is more secure than investment in shares. Even if the performance of the market is worse, your money will not be touched—the only thing that will change is the interest rate.

You are also allowed to withdraw money at any time.Call the bank or write an email to request for withdrawal. You will get your money within 3 days. When investing for Sacco shares, you won’t be allowed to sell your shares instant, you have to look for someone willing to buy them.

I like an investment where I have authority over my money, where I will ask for it any time and be given.

Amount of money to make from KCB Money Market Fund depends on your invested amount. Since the interest is 10.50% per annum, you’ll earn the following amount:

Ksh 100,000 investment—-Ksh 10,500 income

Ksh 1 million investment—-Ksh 105,000 income

Ksh 10 million investment—Ksh 1,050,000 income

Ksh 50,000 investment—Ksh 5,250 income

Ksh 200,000 investment—-Ksh 21,000 income

To maximize your earnings, invest your money without withdrawing. You can put a standing order where your bank credits your MMF account Ksh 10,000 monthly. This way you’ll make a lot of money.

I always prefer money market fund to Fixed Deposit Account, Shares or rental apartments.

For instance, if you have Ksh 10 million to invest with, Money Market Fund will yield over Ksh 1 million monthly but the same amount will build 1 storey apartment which will generate Ksh 50,000 to Ksh 100,000 per month. It will take you up to 20 years to recover your capital. In 20 years, your MMF investment would have yielded over Ksh 20 million plus the initial capita of Ksh 10 million.

Money Market Fund excludes you from managing your money, you’ll only receive the profits in your account. But when you own an apartment, you’ll incur costs of managing your propery. Income can be Ksh 100,000 but the cost of managing it is Ksh 30,000.

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