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Best Money Market fund in Kenya
S.Mutaga III
#1 Posted : Wednesday, January 08, 2014 11:31:56 PM
Rank: Member


Joined: 3/26/2012
Posts: 809
Which is the best money market fund in Kenya? Anyone with experience with either cic,britam or old mutual?
A successful man is not he who gets the best, it is he who makes the best from what he gets.
Chaka
#2 Posted : Thursday, January 09, 2014 2:55:45 PM
Rank: Veteran


Joined: 2/16/2007
Posts: 2,077
S.Mutaga III wrote:
Which is the best money market fund in Kenya? Anyone with experience with either cic,britam or old mutual?


I have experience with cic and old mutual
and judging from the daily yields as given in the daily papers old mutual would come in last..I would vouch for cic..
grolut
#3 Posted : Friday, January 10, 2014 8:33:55 AM
Rank: Member


Joined: 9/2/2010
Posts: 559
Location: Embakasi
I hear Amana isn't too bad.
In a place where thought is abandoned, freedom can become a curse.
ecstacy
#4 Posted : Friday, January 10, 2014 3:08:44 PM
Rank: Elder


Joined: 2/26/2008
Posts: 4,449
If you are not in a hurry, you are better off buying NSE blue chips to the end of time..
mkonomtupu
#5 Posted : Friday, January 10, 2014 3:48:56 PM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,000
Location: River Road
ecstacy wrote:
If you are not in a hurry, you are better off buying NSE blue chips to the end of time..


why buy shares with dividend yields of 1-5% when you can get 8-10% on the money market without risking your capital
mchambuzi
#6 Posted : Friday, January 10, 2014 3:57:58 PM
Rank: New-farer


Joined: 11/17/2013
Posts: 80
Location: Juja
mkonomtupu wrote:
ecstacy wrote:
If you are not in a hurry, you are better off buying NSE blue chips to the end of time..


why buy shares with dividend yields of 1-5% when you can get 8-10% on the money market without risking your capital


8-10%? Thats low, inflation is at 7.15% although in actual sense its usually much higher. That means you are making 2-3% gain. In shares you can make more from capital gains not just the dividends. I would opt for a portfolio of blue chip companies if I was risk averse
On a long enough timeline, the life expectancy of everyone drops to zero.
ecstacy
#7 Posted : Friday, January 10, 2014 4:04:03 PM
Rank: Elder


Joined: 2/26/2008
Posts: 4,449
mchambuzi wrote:
mkonomtupu wrote:
ecstacy wrote:
If you are not in a hurry, you are better off buying NSE blue chips to the end of time..


why buy shares with dividend yields of 1-5% when you can get 8-10% on the money market without risking your capital


8-10%? Thats low, inflation is at 7.15% although in actual sense its usually much higher. That means you are making 2-3% gain. In shares you can make more from capital gains not just the dividends. I would opt for a portfolio of blue chip companies if I was risk averse


To make it easier, assume you had been buying SCOM, BAT and KCB shares over the past three years.

Look at the share price appreciation and dividend yield and that money market fund is exposed as a joke.
mkonomtupu
#8 Posted : Friday, January 10, 2014 4:14:21 PM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,000
Location: River Road
ecstacy wrote:
mchambuzi wrote:
mkonomtupu wrote:
ecstacy wrote:
If you are not in a hurry, you are better off buying NSE blue chips to the end of time..


why buy shares with dividend yields of 1-5% when you can get 8-10% on the money market without risking your capital


8-10%? Thats low, inflation is at 7.15% although in actual sense its usually much higher. That means you are making 2-3% gain. In shares you can make more from capital gains not just the dividends. I would opt for a portfolio of blue chip companies if I was risk averse


To make it easier, assume you had been buying SCOM, BAT and KCB shares over the past three years.

Look at the share price appreciation and dividend yield and that money market fund is exposed as a joke.


At that point the dividend yield was good 7-10% but right now the same stocks are over-valued e.g SCOM has p/e of 36(overvalued highest should be 18). That means you to wait 36 years. It's unlikely that company earnings will match up with those prices any time soon. For the record i bought my shares at rock bottom prices KCB 21, NIC 24, kengen 8.3 but I have taken capital gains and re-invested in money market. It depends on timing
XSK
#9 Posted : Friday, January 10, 2014 4:28:28 PM
Rank: Veteran


Joined: 12/8/2009
Posts: 950
Location: Nairobi
mkonomtupu wrote:
ecstacy wrote:
mchambuzi wrote:
mkonomtupu wrote:
ecstacy wrote:
If you are not in a hurry, you are better off buying NSE blue chips to the end of time..


why buy shares with dividend yields of 1-5% when you can get 8-10% on the money market without risking your capital


8-10%? Thats low, inflation is at 7.15% although in actual sense its usually much higher. That means you are making 2-3% gain. In shares you can make more from capital gains not just the dividends. I would opt for a portfolio of blue chip companies if I was risk averse


To make it easier, assume you had been buying SCOM, BAT and KCB shares over the past three years.

Look at the share price appreciation and dividend yield and that money market fund is exposed as a joke.


At that point the dividend yield was good 7-10% but right now the same stocks are over-valued e.g SCOM has p/e of 36(overvalued highest should be 18). That means you to wait 36 years. It's unlikely that company earnings will match up with those prices any time soon. For the record i bought my shares at rock bottom prices KCB 21, NIC 24, kengen 8.3 but I have taken capital gains and re-invested in money market. It depends on timing


@Mkonomtupu

Thanks for that education on the money market fund. Its basically a place to keep/park your money as you wait for an opportunity to strike! Meanwhile the money will not be losing value.
You will know that you have arrived when money and time are not mutually exclusive "events" in you life!
ecstacy
#10 Posted : Friday, January 10, 2014 5:11:53 PM
Rank: Elder


Joined: 2/26/2008
Posts: 4,449
XSK wrote:
mkonomtupu wrote:
ecstacy wrote:
mchambuzi wrote:
mkonomtupu wrote:
ecstacy wrote:
If you are not in a hurry, you are better off buying NSE blue chips to the end of time..


why buy shares with dividend yields of 1-5% when you can get 8-10% on the money market without risking your capital


8-10%? Thats low, inflation is at 7.15% although in actual sense its usually much higher. That means you are making 2-3% gain. In shares you can make more from capital gains not just the dividends. I would opt for a portfolio of blue chip companies if I was risk averse


To make it easier, assume you had been buying SCOM, BAT and KCB shares over the past three years.

Look at the share price appreciation and dividend yield and that money market fund is exposed as a joke.


At that point the dividend yield was good 7-10% but right now the same stocks are over-valued e.g SCOM has p/e of 36(overvalued highest should be 18). That means you to wait 36 years. It's unlikely that company earnings will match up with those prices any time soon. For the record i bought my shares at rock bottom prices KCB 21, NIC 24, kengen 8.3 but I have taken capital gains and re-invested in money market. It depends on timing


@Mkonomtupu

Thanks for that education on the money market fund. Its basically a place to keep/park your money as you wait for an opportunity to strike! Meanwhile the money will not be losing value.


I assume I am talking to Wazua veterans here.

And where do we imagine these fund managers take your money? HAHA

Let us put this in perspective. After waiting 12 solid months, the fund promises me 8-10% in a country with 7% inflation at best and we are happy?

To put this to rest.

Buy KQ today 13.50, sell on 2015 FY announcement.

Buy NBK today 31.75, sell by March 2015.

Buy HFCK today 33.75, sell March 2015.

NB: Any negative NSE reaction on sign of fed tapering and sell the above before Sept 2014 for a lower re-entry.

We shall compare notes at this time next year OR before Sept 2014.

And just to hammer the point closer home, buy SCOM TODAY at 11.70/= and sell by this 2014 full year results in June therabouts. Between now and then, price appreciation estimate is 13.50, that is 15% up from TODAYs 'over valued' price for this GROWTH stock!! HAHA

Magnate
#11 Posted : Sunday, January 12, 2014 8:17:01 PM
Rank: Member


Joined: 11/1/2013
Posts: 256
ecstacy wrote:
XSK wrote:
mkonomtupu wrote:
ecstacy wrote:
mchambuzi wrote:
mkonomtupu wrote:
ecstacy wrote:
If you are not in a hurry, you are better off buying NSE blue chips to the end of time..


why buy shares with dividend yields of 1-5% when you can get 8-10% on the money market without risking your capital


8-10%? Thats low, inflation is at 7.15% although in actual sense its usually much higher. That means you are making 2-3% gain. In shares you can make more from capital gains not just the dividends. I would opt for a portfolio of blue chip companies if I was risk averse


To make it easier, assume you had been buying SCOM, BAT and KCB shares over the past three years.

Look at the share price appreciation and dividend yield and that money market fund is exposed as a joke.


At that point the dividend yield was good 7-10% but right now the same stocks are over-valued e.g SCOM has p/e of 36(overvalued highest should be 18). That means you to wait 36 years. It's unlikely that company earnings will match up with those prices any time soon. For the record i bought my shares at rock bottom prices KCB 21, NIC 24, kengen 8.3 but I have taken capital gains and re-invested in money market. It depends on timing


@Mkonomtupu

Thanks for that education on the money market fund. Its basically a place to keep/park your money as you wait for an opportunity to strike! Meanwhile the money will not be losing value.


I assume I am talking to Wazua veterans here.

And where do we imagine these fund managers take your money? HAHA

Let us put this in perspective. After waiting 12 solid months, the fund promises me 8-10% in a country with 7% inflation at best and we are happy?

To put this to rest.

Buy KQ today 13.50, sell on 2015 FY announcement.

Buy NBK today 31.75, sell by March 2015.

Buy HFCK today 33.75, sell March 2015.

NB: Any negative NSE reaction on sign of fed tapering and sell the above before Sept 2014 for a lower re-entry.

We shall compare notes at this time next year OR before Sept 2014.

And just to hammer the point closer home, buy SCOM TODAY at 11.70/= and sell by this 2014 full year results in June therabouts. Between now and then, price appreciation estimate is 13.50, that is 15% up from TODAYs 'over valued' price for this GROWTH stock!! HAHA


@ecstacy ...am in agreement with you on NBK,HFCK & KQ.sell by march 2015
No diagnosis,no pragnosis,no pragnosis no profit......Jesse livermore
mukiha
#12 Posted : Monday, January 13, 2014 3:42:08 PM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
S.Mutaga III wrote:
Which is the best money market fund in Kenya? Anyone with experience with either cic,britam or old mutual?


I concur with @Chaka on CIC. I've had good returns with them. I also had an acc at ICEA and BAAM. These two [plus] OMAM have had quite a bad two years. But BAAM is now waking up.

At one point last year, CIC was returning better than T-Bills.... so I moved my cash from CBK to CIC.

Be careful with the rates quoted in the press. They are not reliable at ALL! Some funds quote pre-tax rates while others quote after-tax. Others do not update the figures and the newspapers are not responsible enough to ignore outdated rates.

On Amana, i recall wazuans trying to figure out who's behind the fund and nobody had an idea! You see, we know CIC is the daughter of CIC Ins, which, in turn, is the niece of Co-Op Bank;
ICEA is the daughter ICEA-Lion, which is the sister of NIC Bank;
BAAM is the daughter Britam, which is a cousin of EQTY;
OMAM is the daughter of Old Mutual which has some very tall uncles in SA.

What about Amana?

For the likes of @Chaka who are telling you to put your money in stocks; they don't understand the element of risk. You can lose money with stocks - ask those who bought CMC at 33 and are no being offered 13 in a take-over; or those who bought ACCESS at 45 and were bought out at [was it?] 34.... and those holding a monkey called Olympia - bought at 28 bob upon announcement of some "serious" investments in SA and is trading at 4bob today!

Money market funds are the place you put the kind of money you'd have in a normal savings account - you earn 8% instead of 1.5% and your money is available on demand [well withing 4 working days].

Considering the rates offered and the speed of availability, I'd conclude that they are better than fixed deposits and T-Bills.

Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
kaka2za
#13 Posted : Monday, January 13, 2014 4:45:25 PM
Rank: Elder


Joined: 10/3/2008
Posts: 3,431
Location: Gwitu
I don't know who is behind Amana but they have served me very well.They have the best rates and you can redeem within four days by just emailing the redemption form.
Aguytrying
#14 Posted : Monday, January 13, 2014 4:55:50 PM
Rank: Elder


Joined: 7/11/2010
Posts: 5,023
At any particular time, at least 25% of a portfolio should be in bonds. in a bull run a maximum of 50% should be in stocks and a maximum of 75% in bonds.

stocks are volatile and a portfolio with bonds is the way to reduce this risk.

no wonder seasoned investors are now rushing to bonds. stocks are becoming overvalued
The investor's chief problem - and even his worst enemy - is likely to be himself
Goldilocks Reloaded
#15 Posted : Wednesday, February 12, 2014 10:41:06 PM
Rank: Member


Joined: 1/14/2014
Posts: 178
@Aguytrying its interesting you have said the "seasoned investors" are moving to bonds. Now will the "unseasoned" investors become wealthy (grow their capital) from bonds? #JustWondering. Dont you think there are still some great bargains in stocks to give better gains? In my view a calculated balance based on individual goals and risk appetites is the key.
Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it – Peter Lynch
maka
#16 Posted : Wednesday, February 19, 2014 7:44:55 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,000
Location: Nairobi
kaka2za wrote:
I don't know who is behind Amana but they have served me very well.They have the best rates and you can redeem within four days by just emailing the redemption form.

I know....smile
possunt quia posse videntur
XSK
#17 Posted : Wednesday, February 19, 2014 8:05:58 AM
Rank: Veteran


Joined: 12/8/2009
Posts: 950
Location: Nairobi
ecstacy wrote:
XSK wrote:
mkonomtupu wrote:
ecstacy wrote:
mchambuzi wrote:
mkonomtupu wrote:
ecstacy wrote:
If you are not in a hurry, you are better off buying NSE blue chips to the end of time..


why buy shares with dividend yields of 1-5% when you can get 8-10% on the money market without risking your capital


8-10%? Thats low, inflation is at 7.15% although in actual sense its usually much higher. That means you are making 2-3% gain. In shares you can make more from capital gains not just the dividends. I would opt for a portfolio of blue chip companies if I was risk averse


To make it easier, assume you had been buying SCOM, BAT and KCB shares over the past three years.

Look at the share price appreciation and dividend yield and that money market fund is exposed as a joke.


At that point the dividend yield was good 7-10% but right now the same stocks are over-valued e.g SCOM has p/e of 36(overvalued highest should be 18). That means you to wait 36 years. It's unlikely that company earnings will match up with those prices any time soon. For the record i bought my shares at rock bottom prices KCB 21, NIC 24, kengen 8.3 but I have taken capital gains and re-invested in money market. It depends on timing


@Mkonomtupu

Thanks for that education on the money market fund. Its basically a place to keep/park your money as you wait for an opportunity to strike! Meanwhile the money will not be losing value.


I assume I am talking to Wazua veterans here.

And where do we imagine these fund managers take your money? HAHA

Let us put this in perspective. After waiting 12 solid months, the fund promises me 8-10% in a country with 7% inflation at best and we are happy?

To put this to rest.

Buy KQ today 13.50, sell on 2015 FY announcement.

Buy NBK today 31.75, sell by March 2015.

Buy HFCK today 33.75, sell March 2015.

NB: Any negative NSE reaction on sign of fed tapering and sell the above before Sept 2014 for a lower re-entry.

We shall compare notes at this time next year OR before Sept 2014.

And just to hammer the point closer home, buy SCOM TODAY at 11.70/= and sell by this 2014 full year results in June therabouts. Between now and then, price appreciation estimate is 13.50, that is 15% up from TODAYs 'over valued' price for this GROWTH stock!! HAHA




You missed the point; this thread is on "the best money market fund in Kenya". I don't think there is anyone claiming that MMF give the highest ROI assuming they can be considered as an investment. However just so that you know in my book keeping money in MMF is not really investing
You will know that you have arrived when money and time are not mutually exclusive "events" in you life!
jawgey
#18 Posted : Wednesday, February 19, 2014 11:29:52 AM
Rank: Member


Joined: 1/13/2014
Posts: 357
Location: Ngong road
mukiha wrote:
S.Mutaga III wrote:
Which is the best money market fund in Kenya? Anyone with experience with either cic,britam or old mutual?


I concur with @Chaka on CIC. I've had good returns with them. I also had an acc at ICEA and BAAM. These two [plus] OMAM have had quite a bad two years. But BAAM is now waking up.

At one point last year, CIC was returning better than T-Bills.... so I moved my cash from CBK to CIC.

Be careful with the rates quoted in the press. They are not reliable at ALL! Some funds quote pre-tax rates while others quote after-tax. Others do not update the figures and the newspapers are not responsible enough to ignore outdated rates.

On Amana, i recall wazuans trying to figure out who's behind the fund and nobody had an idea! You see, we know CIC is the daughter of CIC Ins, which, in turn, is the niece of Co-Op Bank;
ICEA is the daughter ICEA-Lion, which is the sister of NIC Bank;
BAAM is the daughter Britam, which is a cousin of EQTY;
OMAM is the daughter of Old Mutual which has some very tall uncles in SA.

What about Amana?

For the likes of @Chaka who are telling you to put your money in stocks; they don't understand the element of risk. You can lose money with stocks - ask those who bought CMC at 33 and are no being offered 13 in a take-over; or those who bought ACCESS at 45 and were bought out at [was it?] 34.... and those holding a monkey called Olympia - bought at 28 bob upon announcement of some "serious" investments in SA and is trading at 4bob today!

Money market funds are the place you put the kind of money you'd have in a normal savings account - you earn 8% instead of 1.5% and your money is available on demand [well withing 4 working days].

Considering the rates offered and the speed of availability, I'd conclude that they are better than fixed deposits and T-Bills.



Access was taken over at 14/-.. Laughing out loudly . I still think stocks is the way to go if you have a balanced portfolio and knowing when to exit/enter..
Seeing is believing
Chaka
#19 Posted : Wednesday, February 19, 2014 1:37:14 PM
Rank: Veteran


Joined: 2/16/2007
Posts: 2,077
maka wrote:
kaka2za wrote:
I don't know who is behind Amana but they have served me very well.They have the best rates and you can redeem within four days by just emailing the redemption form.

I know....smile

@maka,
Who?
maka
#20 Posted : Wednesday, February 19, 2014 4:06:53 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,000
Location: Nairobi
Chaka wrote:
maka wrote:
kaka2za wrote:
I don't know who is behind Amana but they have served me very well.They have the best rates and you can redeem within four days by just emailing the redemption form.

I know....smile

@maka,
Who?


A substantial shareholding was bought by the fellow and his business associates not long ago....

Think makaburi...
possunt quia posse videntur
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