The NCBA Money Market Fund is among the investment solutions of NCBA Bank, one of the biggest commercial banks in Kenya.
In summary, a money market fund is a low-risk investment option that invests in high-quality securities of short maturities, and the NCBA’s is no different;
In financial markets, such money market instruments with a near guarantee of capital preservation to the investor may include a portfolio of short-term cash deposits alongside debt securities such as treasury bills and bonds issued by the government.
For that, money market funds are considered a more stable investment, though lacking long-term growth potential like that of shares and stocks, which is why they are said to be a fit for those seeking to fulfil their short-term money plans like purchasing an asset, saving for a holiday or financing their education.
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How does the NCBA Money Market Fund work?
NCBA Money Market Fund seeks a high current income while preserving capital and maintaining liquidity to meet its financial obligations, including interest and dividend payments to investors as they come due. That is the investment objective of the fund.
With NCBA Equity Fund and NCBA Dollar Investment Fund, it is one of the NCBA Unit Trusts Funds but accepting investments in Kenyan shillings.
Upon opening an NCBA Money Market Fund account, the minimum initial investment is Ksh5,000, while additional investments shall be from Ksh1,000, the minimum amount to withdraw when dividends get paid on the last day of the month and you don’t reinvest them.
Per day, the number of top-ups you can make to your account is subject to the Ksh999,999 maximum amount to either invest or withdraw from the fund at any given time.
As of the first quarter of 2024, NCBA Bank, in its NCBA Unit Trusts Funds to which the money market fund belongs, had total assets under management of around Ksh31.3 billion after seeing a 1.1% change from the Ksh30.9 billion posted in the financial year ending December 2023.
What is the interest rate of the NCBA Money Market Fund in 2024?
As of May 2024, NCBA Bank is offering an average 12% interest rate on money market accounts, which have investment tenures ranging from 3 to 12 months but allow instant liquidation.
However, that yield is only indicative but not inclusive of the taxes and annual management fees, which are subject to deduction.
When you factor in all the fund expenses, the real rate of that NCBA Money Market Fund will fall between 8% and 10%.
How can I join the NCBA Money Market Fund?
As seen, when you open a money market account with NCBA Bank, you’ll get access to competitive yields and earn monthly income on your cash reserves while preserving capital. That is why you might have asked yourself how you can join and start investing in the fund:
Well, to get the best return on your funds, you can register through the lender’s website at ke.ncbagroup.com/investment-solutions/, then fill in the contact form with your name, email and phone number.
Next, a bank representative will contact you within 24 hours, if it is on a working day, and guide you through all the processes to finish your free registration.
But if you are an existing NCBA customer, you can start investing in the money market fund directly through the NCBA Now App, which also gives real-time account monitoring of unit trust funds.
All in all, before you invest, know that the value of investments and the income from them can go down as well as up, so you may get back less than you invest.
