![Faulu Microfinance Bank Launches Competitive Money Market Fund](https://metropoltv.co.ke/wp-content/uploads/2024/07/Photo-3-780x470.jpg)
Faulu Microfinance Bank has officially launched its highly anticipated Money Market Fund (MMF), offering customers flexible and profitable investment opportunities.
The MMF is a collective investment scheme registered with the Capital Markets Authority, investing in money-market instruments such as short-term government securities, bank deposits, and high-grade corporate securities.
As of July 18, 2024, Faulu’s MMF boasts a competitive effective annual yield of 16.32%, making it one of the top-performing funds in its category.
Investment Limit
The fund caters to diverse financial goals and preferences, allowing customers to start investing with as little as Ksh.1,000.
This initiative is a key part of Faulu’s strategic plan to expand its wealth management portfolio. It leverages the extensive expertise and resources of the Old Mutual Investment Group (OMIG), the investment arm of Faulu’s parent company, Old Mutual Group.
To invest, prospective clients need to open MMF accounts and a Faulu transactional account if they are not already customers. A holding account will be created through OMIG’s platforms and funded through deductions from the customer’s account.
Also Read:Â How to Plan for your Future Using a Money Market Fund
The introduction of the MMF strengthens Faulu’s suite of financial products, enhancing its offerings to meet the evolving needs of its growing customer base.
“We are pleased to introduce our Money Market Fund, part of the innovative financial solutions we are creating for our customers. This launch broadens access to high-quality investment opportunities,” said Faulu Bank’s CEO, Julius Ouma.
“We are working with a team of experienced investment managers who will ensure our customers get the best returns on their investments.”
Ksh.900 Million Capital Injection
Money market funds are known for their benefits, including enhanced safety, liquidity, and investment diversification. Investors can enjoy competitive interest returns while maintaining easy access to their funds, balancing profitability with financial flexibility.
“The Old Mutual Group has extensive experience in money market fund management, and we bring this expertise to ensure Faulu customers get competitive returns on their investments.
Our team of fund managers is available to provide guidance across a diversified portfolio of money market instruments,” said Old Mutual Investment Group Managing Director, Anthony Mwithiga.
The launch of the Faulu MMF follows a significant capital injection of Ksh.900 million from the Old Mutual Group, bolstering the bank’s financial position and enabling it to increase its lending capacity and expand its range of products and services.