ICEA Lion Asset Management on Wednesday, January 13 launched a new online money market fund as it encouraged customers to easily invest and keep track of their financial goals.
Known as DigiTrust, the service is accessible via a web portal and mobile USSD code. One requires a minimum deposit of Ksh500 to sign up for the service.
Promising a low risk investment, the fund offers customers the ability to preserve capital by maintaining the value of their initial investment while still benefitting from compounded interest. It is regulated by the Capital Markets Authority (CMA).
It also serves as a no fuss savings account and has no lock in period – meaning customers can withdraw their money at any time and still receive interest.
“There are also no penalties for withdrawal or monthly account maintenance charges. Instead, the fund awards you a monthly income. This level of income is typically higher than your conventional savings bank account,” ICEA lion noted.
ICEA Lion urged customers to sign up for the fund, noting that it would introduce more stable returns to their portfolios.
“We (money market fund) spread your risk to ensure minimal impact to your investments. Additionally, the unit trust in itself is diversified. This is due to the fact that it is also invested across various issuers,” the firm noted.
The service also incorporates various digital tools to enable customers to keep track of their investments and set goals.
Among the features is an online calculator that provides an estimation of the amount one stands to gain from their investment.
Present at the launch, Nairobi Securities Exchange (NSE) Chief Executive Geoffrey Odundo welcomed the adoption of technology by key players in the financial sector, noting that the benefits would trickle down to investors.
He further observed that client onboarding had been a major challenge affecting uptake of investment products in the country.
“Access has been one of the key challenges to the uptake of personal investment schemes. Technology can be the game changer in increasing touch points between asset managers and customers to scale up adoption
“Adoption of technology will enable investment sector players offer services at much affordable prices reducing the overall investment cost for retail investors and institutional investors,” he stated.