Money Market Funds vs. Special Funds in Kenya - Oak Special Fund

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In recent years, Africa has been positioned as a promising investment destination, with Kenya standing out as a top choice due to its open financial markets, free flow of capital, and strong regulatory framework. Kenya offers a variety of investment opportunities, especially through Collective Investment Schemes (CIS), which include products like money market funds, fixed income funds, balanced funds, and equity funds. Among these, the introduction of "special funds" has provided investors with a more flexible and diversified approach, enabling broader investment options and longer time horizons compared to traditional money market funds.
Money market funds primarily invest in cash and cash equivalents, including call deposits, fixed deposits, and short-term government securities. These funds are highly liquid, allowing investors to withdraw their money quickly, often after just seven days. However, they are restricted in terms of asset classes and investment durations, as they cannot engage in riskier or longer-term investments like real estate or long-term bonds. In contrast, special funds offer greater flexibility by allowing investments in a wider range of asset classes, including international stocks, sovereign bonds, exchange-traded funds (ETFs), and even leveraged products like contracts for difference (CFDs) and derivatives. This makes special funds ideal for investors seeking higher returns and more sophisticated instruments.
Managing special funds, however, requires significant expertise and resources. The complexity of these instruments, including the use of leverage and trading in international markets, demands a skilled team of financial professionals who can assess risks, optimize portfolios, and comply with regulatory requirements. For investors, special funds simplify the investment process by providing access to a diverse portfolio without requiring them to manage the intricate details. This allows individuals to benefit from advanced financial strategies while leaving the complexities of portfolio management to experienced professionals.

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Whether you have questions or are ready to start investing, our team is here to help.
E-mail: [e-mail]
WhatsApp: [phone]
Call: ([phone]
oak.africa/
Head Office
Address: Crawford Business Park,
State House Rd, Nairobi Kenya