Madison Money Market Fund is one of the money market funds in Kenya. It is owned by Madison Group Limited, a locally owned financial services holding company specialising in wealth management services and insurance through its Madison General and Madison Life, underwriting in the life insurance business in Kenya.
Started in November 2011, Madison Money Market Fund is a low-risk, short-term savings alternative that provides easy access to your cash.
“The fund objective is to ensure that there is capital preservation and competitive returns to beat inflation whilst ensuring sufficient liquidity of withdrawal on short notice,” it says.
To manage the short-term cash surplus of investors while providing optimal returns, the fund invests in money market instruments with short maturities and minimal credit risks, such as government Treasury bills (T-bills), commercial papers, bank deposits and certificates of deposit (CDs).
How does the Madison Money Market Fund work?
Madison Money Market Fund is an open-ended investment scheme that allows investors to pool their capital together for investing in the mentioned securities like T-bills, commercial papers and bank deposits while, at the same time, permitting ongoing new contributions and withdrawals.
Opening a Madison MMF account is free, but it requires one to invest Ksh5,000 as the first deposit and Ksh1,000 minimum when making subsequent top-ups. On their part, withdrawals and exits attract no penalties.
Because its objective is to generate optimal returns consistent with moderate levels of risk and liquidity, it is designed specifically for investors who want a steady income stream over a short range of time.
What is Madison’s money market fund rate in Kenya?
Madison Money Market Fund yield is 15.25% as of July 2024, compared to 15.42% last month and 15.55% in May. Although it is reducing due to inflation bites and other market factors, the current interest rate is higher than its long-term average annual percentage yield (APY) of 13%.
In the top 5 list of best schemes of money market mutual funds sorted by returns in Kenya, Madison does not appear because it pays below the average interest rate of 364-day Treasury bills, which is now 16.73%.
How to join Madison MMF
To join Madison Money Market Fund, visit their website and follow their account opening procedure by choosing ‘Click to Invest.’ You’ll typically need to provide some personal information like name and email address and submit identification documents, which is either a National ID or passport.
After opening your investment account, you’ll need to deposit money into it, a Ksh5,000 minimum initial investment as stated. That can be done via bank transfer or mobile money, usually Mpesa.
Madison’s MMF fund manager is Madison Investment Managers Ltd, its custodian is Equity Bank Kenya, and KCB Bank is the fund’s trustee.
The fund is licensed and regulated by the government financial regulatory entity Capital Markets Authority (CMA).
