Much as you say the customer deposits may not be insured,they are not held by the fund manager.They are held by an independent custodian eg Equity bank.In case of collapse of the fund manager,the deposits are safe and can be transferred to a different fund manager.This is in addition to the fund having an independent Trustee as well as an Auditor.CMA also clearly outlines and enforces the law governing the fund.
Ken, this video is a fantastic deep dive into the world of money market funds! Your clear explanations and real calculations make it so much easier for us to understand how our money can work for us💰
@marynjuguna9434 haha I guess there is a hairstyle for those who speak about money. I'm also certain that someone who takes time to make this comment is poor for sure. I can bet 1M on it. Anyways thanks for engagement.
He didn't compound the interest, yet the fact sheet clearly says that the amount is compounded daily. His calculation was wrong, 100,000 compounded daily for a year would yield about 47k.
Just to clarify, since the performance shown is net of management fees, does that mean the fees have already been deducted, and the only adjustment left is to account for withholding tax (WHT)?
Hallo Ken,thanks for the wonderful insight . I would like you to expound on what they mean by compounding interest.i.e there is a daily interest on the 100k and that interest will earn more interest the mext Day and the cycle goes on like that.
That's exactly what compounding means. That 100k will be 101k tomorrow and the 101k will earn interest as well. So they will not restrict your new interest to 100k you started with.
This is what I was about to say. The averages in all my MMFs is around this. A little less or more is expected depending on the MMF. Not so complicated
@collinscotienoh2517 yes! It is likely your shylock averages a higher interest rate after all this is a different investment. However, he is also likely to make some losses and loss of capital.
Exactly.He actually read that 'the interest quoted is net of 2% management fee' in the disclaimer, yet he went ahead to deduct it again.This math is inaccurate
Hi Ken, Question 1: Since interest rates change frequently, and as of now, they stand at 11% in CBK treasury bills, does the interest rate change on MMF over time or stay the same as what one signed for when joining MMF? Question 2: You have mentioned that MMFs are not guranteed by Capital Markets Authority, and if the company collapses, you are left on your own. This is very scary, especially if a company makes people believe that it’s genuine but, their mindset is a pymid scheme. Does this mean one has to insure the MMF investment?
Your math is inaccurate. The interest quoted is net of 2% management fee.Don't deduct it. The 2% management fee is calculated & charged daily based on the capital + interest in the account on that day divided by 365.Please correct these,otherwise you may mislead those who are unaware.
Boss, if you feel uneasy why don’t you just withdraw your money and take it elsewhere so that you don’t loose your sleep? It’s better if you have it where you feel relaxed
Much as you say the customer deposits may not be insured,they are not held by the fund manager.They are held by an independent custodian eg Equity bank.In case of collapse of the fund manager,the deposits are safe and can be transferred to a different fund manager.This is in addition to the fund having an independent Trustee as well as an Auditor.CMA also clearly outlines and enforces the law governing the fund.
Are bank deposits not insured by KDIC
MMFS , all of them big or small are secure
Ken, this video is a fantastic deep dive into the world of money market funds! Your clear explanations and real calculations make it so much easier for us to understand how our money can work for us💰
🙏🏽🙏🏽🙏🏽
Is mmf compounded monthly or do they use simple interest??
In Tanzanian money markets, no deductions are applied, not even taxes. Therefore, you would receive the full amount of 117,200 without any reductions.
How do you build your country then?
Hii tunaipata vipi
Can I invest there from Kenya
@@jedidahnthenya the have a lot of minerals, like we also do but here we rather tax citizen to make sure their wallet remains thin.
How can a Kenyan buy tanzanian mmf?
This is very informative. I have never known how these amounts are calculated. No one like you brooooo👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼
I got you. More is coming!
Stay tuned for new videos, Ann.
@kensmoneymatters thank you
Hey, did you consider daily compound interest?
i also dint see the compound interest
He didn't consider it, if he had the compound interest after one year would have been about 47,000.
Do the calculation for the 100k in the wealth fund and let's compare the better one
Hio ndio style ya nywele ya mtu anaongelelea pesa mingi😮
@marynjuguna9434 haha I guess there is a hairstyle for those who speak about money. I'm also certain that someone who takes time to make this comment is poor for sure. I can bet 1M on it. Anyways thanks for engagement.
Please if you can make a video on procedures of investing in Etica mmf.
👌
i thought ukisema compound you calculate using compound interest and not simple interest. Is there any investment wanatumia compound interest?
MMFS accrue your interest on a daily basis and reinvest to compound daily or on monthly basis.check yours if it compounds daily or monthly
He didn't compound the interest, yet the fact sheet clearly says that the amount is compounded daily. His calculation was wrong, 100,000 compounded daily for a year would yield about 47k.
How do I invest in etica, any link lead?
Sign up on their website. Then download the app for easy access.
If it's 17% then they take 15% withholding and 2.5 management fee what will you get
This is brilliant, Ken
Glad you found it so!
Just to clarify, since the performance shown is net of management fees, does that mean the fees have already been deducted, and the only adjustment left is to account for withholding tax (WHT)?
Yes
First time here and i like your 'straight forwardness'. Good video
Thank you, Kwameh.
Kindly tell how do they calculate mmf to pay me interest monthly
I love that intro 😂😂😂. I love that you didn't delete the false start.
Sometimes I have as many as 5- 10 false starts.
So relatable.
Wueh! The struggle is Real! 😅😂
@kensmoneymatters 😂😂😂
We thrive regardless. 🤣
Good job with that analysis 👏🏿
Karibu, James. Which is your best MMF?
So our money is not insured? So we stand a risk of loosing our money?
Not at all, external risks like default exists
What about Ziidi
Here is a video on it: th-cam.com/video/pIN7_B7qdjc/w-d-xo.html
Great insight indeed
📌 📌 📌
Hallo Ken,thanks for the wonderful insight .
I would like you to expound on what they mean by compounding interest.i.e there is a daily interest on the 100k and that interest will earn more interest the mext Day and the cycle goes on like that.
That's exactly what compounding means. That 100k will be 101k tomorrow and the 101k will earn interest as well. So they will not restrict your new interest to 100k you started with.
Daily compounding interest gives you 118,762.97 in 1 yr.
@@erickprimus is this after the deductions?
No.
100 gives u 1bob/month
1k gives u 10bob/month
10k gives u 100bob/month
100k gives u 1k/month
1m gives u 10k/month
That's the average
My man! You know these things🤑🤑🤑🤑🤑
you have gone over board in terms of jokes 😆🤣
But this is not far from the truth actually is the fact.
This is what I was about to say. The averages in all my MMFs is around this. A little less or more is expected depending on the MMF. Not so complicated
In other words you are saying that shylock in my neighborhood makes way more money than me.
@collinscotienoh2517 yes! It is likely your shylock averages a higher interest rate after all this is a different investment. However, he is also likely to make some losses and loss of capital.
How can i get the fax sheet
@@Fordolskey go to individual company websites
Reclarify; The effective rate has already covered the fees thus it is Net of fees and gross of tax thus there will be no fee deduction again
My thinking too....
Exactly.He actually read that 'the interest quoted is net of 2% management fee' in the disclaimer, yet he went ahead to deduct it again.This math is inaccurate
Sure. Only tax should be diducted.
However ZIIDI reflects net of all deductions
so instead of them simply saying 12% like others, they say 17 and hide a lot of detials
All MMFS interest are shown net of management fees
How much do you have in your Money Market Fund?
Hi Ken, Question 1: Since interest rates change frequently, and as of now, they stand at 11% in CBK treasury bills, does the interest rate change on MMF over time or stay the same as what one signed for when joining MMF?
Question 2: You have mentioned that MMFs are not guranteed by Capital Markets Authority, and if the company collapses, you are left on your own. This is very scary, especially if a company makes people believe that it’s genuine but, their mindset is a pymid scheme. Does this mean one has to insure the MMF investment?
Invest in these schemes at your own risk. These systems have been created in such a way that they don't loose.
How can i join etica?
Hey Nancy, go to their website.
what if you factor in inflation, how will it change this calculations
There definitely will be a change. Maybe not as much, though.
calculation is for simple interest
❤ thanks Ken. Actually i joined Etica coz of your mmf's videos. Thanks.We are hoping for the best in year 2025
So glad to hear this!!! Great job, Mary.
Keep investing.
How do you join Etica?
@@successniche apload their app
@@successnicheyou can do it online through an Etica app ,after registering everything you can start investing
Sure same here 2025 be good ,few months to end of 2024 imekua chini kidogo
But there companies that gives you 15% of your deposit.
You investing with one of them? Which one?
What do you think of ziidi
I will be uploading a video on this next week on Saturday at 11 30am
Hey kindly study and let us know about scl Kenya. Is it a scam?
Your math is inaccurate. The interest quoted is net of 2% management fee.Don't deduct it. The 2% management fee is calculated & charged daily based on the capital + interest in the account on that day divided by 365.Please correct these,otherwise you may mislead those who are unaware.
Also, did he incorporate the compounding factor of the daily interest?
@@benjaminkyalo4464He did not, his math is very incorrect
I have Etica, Cytonn and Kuza.
But with the unfolding story about cytonn in court of appeal i feel uneasy. What do you think?
I made a video on this. Here is the link👇🏽
th-cam.com/video/TxDjrhXCigE/w-d-xo.html
Boss, if you feel uneasy why don’t you just withdraw your money and take it elsewhere so that you don’t loose your sleep? It’s better if you have it where you feel relaxed
Etica mmf
As simple as you have put it. @@thomasorungo6898
Do we have real Halal MMFs, and what products portfolio do they engage in?
What do you mean by Halal
He means the sharia product for the Muslim friends @@kensmoneymatters
My friend go to studio and start rapping not coming here to teach what earn won't hear, you forgot to know you are educating people
@EdwardEbhohimen too early to have so much bile. Drink some water, get some sleep. You sound sick.
Your calculations is not compounded.. Ulikosana na mwalimu wa maths lol
🤔Uko sure? 😁
Yap it is usually compound interest
Which Money Market Fund do you invest in?
I invested in Cytonn and Etika mmf at the moment I can't complain I'm okay with both
Etica & Nabo capital
@@nelsonkirwa7410 this is great to hear.
Keep up the good work.
@@margretmwikali4898how are you finding them so far?
So far it's a best deal expecially the compounding effect I like it here😊@@kensmoneymatters
3 minutes of introduction 😢, get to the point
Boss, relaaax... Ni end year bana.
Wrong math
What's the right math, boss? According to you.
Money market is just bulshit 10k cant make more than 10bob per day waste of time
Boss, what happened to you?
Huyu anataka returns kama za aviator in real life
Opened zimele last yr now trying to open etica and 2nd step in personal information it's not going through,
How are you finding Zimele?
About Etica, what device are you using?
@kensmoneymatters my phone,smart phone
Very well explained 🫡
📌 🤑