For all rounded financial wellness and growth, a good savings culture should go hand in hand with making informed investments and having the right financial partner to safeguard your money. In this article, we will have a look at Absa’s Unit Trusts which the bank describes as ‘a set of uniquely designed investment products, purposefully built to address the different return expectations, liquidity needs and risk tolerance levels of investors.’ Understanding investment options is crucial for anyone looking to grow their wealth responsibly and Absa Unit Trusts is a reputable financial institution that offers a range of investment products, including money market funds.
In line with the bank’s new proposition of having financial solutions for everyone, Absa has a comprehensive suite of Unit Trust investment options, including the Absa Fixed Income Fund, the Absa Shilling Fund, the Absa Dollar Fund Absa Balanced Fund and Absa Equity Fund. These money market funds are characterized by low volatility against market fluctuations, liquidity allowing for easy conversion of holdings into cash, and income generation through interest.
Here are the facilities in deeper details.
The Absa Shilling Money Market Fund
The Absa Shilling Money Market Fund is simply a Money Market Fund dominated by the Kenya Shilling. With this, Absa aims to generate income for investors through short term securities by participating in a varied portfolio of thoughtfully chosen and strictly managed money market securities. Investors get to enjoy immense gains like expert management of invested funds, good returns through monthly compounded interest, quick accessibility to invested funds within three working days and the assurance of safety of funds through oversight by the Capital Markets Authority (CMA).
The Absa Dollar Money Market Fund
The Absa Dollar Money Market Fund is pretty much like the Kenya Shilling one except it is US Dollar dominated. This is a low-risk investment with a minimum initial investment of 100 USD and a minimum additional investment of 100 USD. It is quite affordable with a management fee of up to 1% per annum on invested funds and there are no charges for initial startup, redemption, or transactions.
The Fixed Income Fund
As the name suggests, this option is for those who wish to go the fixed income securities way. The primary goal of the fixed income fund is to offer investors a combined return of interest income and capital gains through long-term interest-bearing securities such as treasury bonds, corporate bonds, and other securities generating interest. It is a good income earner and an entry into treasury and corporate bonds. The facility has no specific lock up timeframe and has minimum volatility. The Fixed has a 3% management fee, a minimum of Ksh.1000/- investment amount and a minimum top-up amount of Ksh.1,000/-
Absa Balanced Fund
This is an investment facility that offers investors an array of investable securities across different assets through a consolidated fund. Investors therefore get their returns from different channels like interest income, dividends, and capital gains. This is achieved through a mix of long and short interest-bearing securities, as well as stocks/shares.
To understand the dynamics of money market funds, consider the offerings of Absa Unit Trusts that employ experienced fund managers to oversee their money market funds, ensuring an informed selection of securities to optimize returns. The Money Market Funds are run by experienced fund managers, and this is an assurance safety and transparency.