Every month, the government floats a bond.
Most investors rush to their CDS Dhow accounts — afraid of being left out.
From 10% to 14% returns, bonds feel safe, familiar, and tempting.
But here’s the real question:
Are you missing better opportunities — especially with fixed income funds?
Let’s break it down.
Option 1: Government Bond
FXD1/2018/025 – February 2026
Years to maturity: 17.3 years
Coupon rate: 13.40%
Net return after 10% tax: 12.1%
If You Invest Ksh 1,000,000
Annual income: Ksh 121,000
Semi-annual income: Ksh 60,500
Total net interest over 17.3 years: Ksh 2,093,300
Capital returned in full at maturity
Pros
Predictable income
Strong capital preservation
Very low risk
Cons
Money locked in for over 17 years
Limited flexibility
This option is ideal if you want certainty and discipline.
Option 2: Fixed Income Funds
Fixed income funds work like MMFs — but invest in longer-term securities (18+ months):
Government bonds (major portion)
Corporate bonds
Cash and call deposits
Because they’re liquid, you can access your money anytime.
Yes, there’s a chance of touching capital during extreme market stress.
But this cuts both ways.
Advantages
Emergency liquidity beyond insurance
Ability to seize new opportunities
Trade-Off
Requires discipline — otherwise, you’ll “eat” the capital
Returns Comparison
Ksh 1,000,000 Over 17.3 Years
1. Average Fixed Income Funds
Approximately 12% net long-term return
Total value: Ksh 7,890,730
Net gain: Ksh 6,890,730
2. Arvocap Almasi Fixed Income Accumulation Fund
Active secondary bond trading advantage
Projected gross return: 17%
After 15% withholding tax:
Total value: Ksh 9,919,015
Net gain: Ksh 8,919,015
That’s a huge gap.
The Real Question
What would you choose — and why?
Personally, if my goal is long-term growth with flexibility,
I would choose Arvocap Almasi Fixed Income Fund — any day, any time.
Structure beats emotion.
Returns follow strategy.
WhatsApp “ALMASI” and I’ll guide you step by step on how to open an account and start investing.
Alex Mwangi | WhatsApp 0703472299
