To build wealth, you need not only save but invest your money to generate more. One way of investing is by joining a money market fund like CIC and watching as your money grows. If you are a beginner investor, it might seem difficult, but it doesn’t have to be. Here is a guide to the CIC money market fund to get you started.
How CIC Money Market Fund Works
CIC money market is an investment fund investing in high liquid and near cash that bear interests. The CIC money market fund was launched in 2011 with CIC Asset Management Ltd managing it. The fund is audited by PWC and its custodian and trustee are co-op custodial services and Kenya Commercial Bank respectively.
The fund allows investors to deposit a minimum of KES. 5,000 as the initial deposit. After the deposit, the fund calculates your interest daily, and you can receive the total at the end of the month.
After the initial deposit, you need to regularly top up your account with a minimum of KES. 1,000. According to the fund, the maximum average weighted tenure is 13 months.
However, the interests are recorded daily and the interests are deposited to the investor’s fund monthly.
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The table below summarizes everything you need to know about the CIC Money Market Fund:
|Fund Manager||CIC Asset Management Limited|
|Custodian||Co-op custodian services|
|Trustee||Kenya Commercial Bank (KCB)|
|Risk Profile||Low Risk|
|Minimum Investment||Ksh. 5,000|
|Minimum Top Up||Ksh. 1,000|
|Effective Annual Yield||8.71%|
|Annual Management Fee||2%|
Benefits of Investing in the CIC MMF
Here are some of the pros of investing in the CIC Money Market Fund:
- Liquidity – some MMFs will penalize you for withdrawing cash on short notice. Some will even penalize you for withdrawing more than once in a month. CIC Money Market Fund does not penalize you and you can withdraw your money on short notice.
- Flexibility – if you have other funds within the CIC Group you are free to transfer the funds to another fund.
- Security – This fund invests in secure bodies such as the government and is saved in banks regulated by the Central Bank of Kenya.
- Good returns – the fund has competitive interests that are recorded daily and transferred to the investor’s bank account every month.
Where Does CIC MMF Invest the Deposited Money?
Many people would love to know where their money is being used after it is deposited into the MMF. This fund, like most of the other funds, is invested in government securities, saved in banks regulated by the Central Bank of Kenya.
The fund is also invested in treasury bills, trusted company documents, and other government securities. This means that you will eventually get an interest and you are sure that your investment is safe because it is managed by different and legitimate bodies.
Who Can Invest With CIC Money Market Fund?
If you are looking to save for something in a year then CIC Money Market Fund is a good choice. Saving with CIC MMF allows you to save and still get some returns every month before the funds mature after 13 months. The fund is great for people with a low income looking to save as low as Ksh. 1,000 regularly.
How to join the CIC Money Market Fund
Here’s the signup process for the CIC Money Market fund;
- Step 1: To start investing in the fund you need to visit the CIC money market fund official website on this link.
- Step 2: From here you will use the form to start with the signup process. On the form, you can fill in your details and choose what you are interested in. In this case, you need to check the savings and investments option. You will also add your email address and your number. You can then decide whether you want a callback still on this form.
- Step 3: After filling in the required information, you must now wait for a response via your email or phone call.
- Step 5: After receiving the membership number, you can now deposit what you initially indicated in the application form. The CIC money market pay bill number is 600111. The account number is your membership number.