ICEA Lion Group Launches Online Money Market Fund

ICEA Lion Group Launches Money Market Fund

ICEA Lion Group has launched its online “Money Market Fund” dubbed DigiTrust and is open for subscription with a minimum of Ksh 500.

The scheme will allow investors to create and track their investment goals online.

Money Market Funds are liquid and low-risk because of the instruments your cash is invested in. 

MMF earns interest daily and it is compounded and annualized. The rate of interest is known as daily yield and effective annual yield. The daily yield is the daily interest which is computed on the funds daily and credited to your account and the effective annual yield is the compounded rate for the period. The Yields fluctuate on day today.

“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.

The fund has an annualised interest rate of 8.3 per cent.

Nairobi Securities Exchange (NSE) Chief Executive Geoffrey Odundo welcomed the adoption of technology by key players in the financial sector besides the onboarding challenges.

“Access has been one of the key challenges to the uptake of personal investment schemes. Technology can be the game-changer in increasing touchpoints between asset managers and customers to scale up adoption

“Adoption of technology will enable investment sector players to offer services at much affordable prices reducing the overall investment cost for retail investors and institutional investors,” he stated.

In Q2 2020 results for money market funds, they made up 89.6% of the total Unit Trust Fund market according to assets under management. Equity Fund and Balanced Fund made up 4.1% and 1.4% respectively.

The industry’s overall assets under management grew to KSh 88.1 Billion from KSh 76.5 Billion in Q1 2020.