Sharp Daily
No Result
View All Result
Friday, June 27, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Opinion

How Merry-Go-Rounds can grow wealth with money market funds

Huldah Matara by Huldah Matara
January 30, 2025
in Opinion
Reading Time: 2 mins read

Merry-go-rounds and chamas have long been pillars of financial empowerment in Kenya, offering a reliable way for groups to pool resources, save, and invest collectively. While these setups are effective, many groups still rely on traditional savings accounts, which provide limited growth opportunities. To maximize their financial potential, merry-go-rounds and chamas should consider investing in money market funds (MMFs).

Money market funds are low-risk investment vehicles that pool money from investors and place it in short-term, high-quality financial instruments such as Treasury bills, fixed deposits, and corporate bonds. These funds not only ensure the safety of members’ contributions but also generate higher returns than conventional savings accounts.

One of the key benefits of MMFs is liquidity. Unlike fixed deposits or other long-term investments, MMFs allow groups to access their funds quickly, often within 24 to 48 hours of a withdrawal request. This makes them ideal for chamas and merry-go-rounds that may need to access funds regularly to meet members’ needs or finance group projects.

MMFs also offer significant safety advantages. Managed by professional fund managers and regulated by the Capital Markets Authority (CMA), these funds invest in low-risk instruments, ensuring that the group’s money is secure while still earning returns. This security makes MMFs a better alternative than keeping funds in cash form or relying solely on traditional banks.

RELATEDPOSTS

Navigating the money market and fixed income funds landscape

June 3, 2025

Celebrate women this International Women’s Day with a smart investment boost

March 7, 2025

Additionally, MMFs provide transparency and convenience. Most fund managers offer digital platforms where groups can monitor their investments, view statements, and make withdrawals with ease. This level of accountability helps reduce the risks of mismanagement or disputes within the group.

The affordability of MMFs is another compelling reason for chamas to invest. With minimum contributions as low as KES 1,000, any group can start building a robust investment portfolio. Over time, the compounded returns can enable the group to fund larger initiatives like buying land, starting a business, or financing higher-value projects.

In conclusion, money market funds are a powerful tool for merry-go-rounds and chamas looking to grow their savings while maintaining safety and flexibility. By transitioning from basic savings to MMFs, these groups can unlock greater financial growth and take their collective investments to the next level.

 

Previous Post

Police halt Lari Nyakinywa women’s meeting amid land tensions

Next Post

Wahome responds to Gachagua’s affordable housing allegations

Huldah Matara

Huldah Matara

Versatile multimedia journalist with a keen interest in compelling stories that resonate with my audience. Reach out on huldahmatara12@gmail.com

Related Posts

Economy

What happened to president Ruto’s economic dream?

June 27, 2025
Opinion

Opinion: Populism feeds votes, not growth

June 27, 2025
Opinion

Unlocking the power of REITs: A path for retail investors

June 26, 2025
Opinion

How Kenyan banks can bridge the cybersecurity talent gap

June 25, 2025
Opinion

How companies can prevent administration through early intervention

June 25, 2025
Opinion

How dormant assets could be a hidden economic engine

June 25, 2025

LATEST STORIES

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 2025

The importance of internships and mentorship for young graduates: Insights from Cytonn Young Leaders Programme

June 26, 2025

Kenya must tame stock market volatility to unlock corporate growth

June 26, 2025

Unlocking the power of REITs: A path for retail investors

June 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024