A Money Market Fund (MMF) is a type of mutual fund that invests in low-risk, short-term asset classes, such as commercial paper, treasury bills, and fixed deposits, overseen by professional fund managers who aim to provide investors with stable investment returns while preserving capital.
In Kenya, MMFs are regulated by the Capital Markets Authority (CMA) and are considered a low-risk investment option due to their extensive oversight.
MMFs are a convenient and accessible way for individuals to grow their savings in Kenya, with a minimum investment of as low as KES 100.
They are particularly suitable for risk-averse investors who are wary of market volatility and looking for a safe investment option.
The custodian of the fund ensures the safekeeping of investors’ money until investment decisions are made, while the trustee oversees the fund manager and custodian to ensure proper management.
