Everything you need to know about Faulu bank’s new money market fund with high returns
Faulu Microfinance Bank has launched its highly anticipated Money Market Fund (MMF), providing customers with flexible and profitable investment opportunities.
The collective investment scheme, registered with the Capital Markets Authority, invests in money-market instruments such as short-term government securities, bank deposits, and high-grade corporate issues.
Offering an impressive annual yield of 16.32 percent, the MMF caters to diverse financial goals and preferences, broadening access to previously untapped segments. Customers can start investing with a minimum of Sh1000, making it an inclusive option for a wide range of investors.
This initiative is part of Faulu’s strategic plan to enhance its wealth management portfolio. The bank leverages the expertise and resources of the Old Mutual Investment Group (OMIG), the investment arm of Faulu’s parent company, Old Mutual Group.
Prospective clients need to open MMF accounts and a Faulu transactional account if they are not already customers. A holding account will be created through OMIG’s platforms, funded by deductions from the customer’s account.
Faulu Bank CEO, Julius Ouma, emphasized the MMF’s role in expanding the bank’s financial product suite, strengthening its customer offerings to meet the evolving needs of its growing customer base.
“We are pleased to introduce our Money Market Fund, which is part of the innovative financial solutions we are creating for our customers. This launch broadens the access of our clients to high-quality investment opportunities,” he said.
“We are working with a team of very experienced investment managers who will ensure that our customers get the best returns on their investments.”
Money market funds are known for their safety, liquidity, and investment diversification benefits. Old Mutual Investment Group MD, Anthony Mwithiga, highlighted that investors could benefit from competitive interest returns while maintaining accessibility to their funds, balancing profitability with financial flexibility.
“The Old Mutual Group has extensive experience in money market fund management stretching over decades, and we bring this expertise to ensure that Faulu customers get competitive returns on their investments,” Mwithiga said.
The launch of the Faulu MMF follows a significant capital injection of Sh900 million from the Old Mutual Group, which has strengthened the bank’s financial position, enabling it to increase its lending capacity and broaden its range of products and services.
