Money Market Funds vs Fixed Income vs Special Funds in Kenya: Which Investment Makes the Most Money?
If you’re looking for smart ways to grow your money without exposing it to high risk, you’ve probably heard of Money Market Funds (MMFs), Special Funds, and Fixed Income Investments. Many people confuse these three, yet each serves a different purpose in wealth creation . Understanding the difference can help you choose the best place to invest your savings and earn consistent returns . Let’s break them down in a simple and exciting way. 1. Money Market Funds (MMFs) A Money Market Fund is a type of investment that pools money from many investors and invests it in very safe, short-term financial instruments such as treasury bills, bank deposits, and commercial papers. In Kenya, MMFs are managed by licensed investment companies under the regulation of the Capital Markets Authority. How MMFs Work You deposit money into a fund. The fund manager invests it in safe short-term securities. You earn daily interest , which accumulates in your account. Examples of MMFs in Kenya Some...