Money Market Funds Vs. Fixed Income Funds Performance Update (As at 31st July 2026)

If you do not have either a Money Market Fund (MMF) or a Fixed Income Fund (FIF),

Come here and tell us…

Where are you saving your money for your short-term and long-term financial goals?

Truth be told…

These are two of the most important savings and investment accounts every investor should have.

You should not have your cash sitting in a bank account earning 0% return…

Or locked in a fixed deposit paying 5%, while inflation is running at 6.5%.

Now…

Let’s address the elephant in the room.

How did these two low-risk investments perform?

Here is how the Top 7 Fixed Income Funds and Top 7 Money Market Funds performed as at 31st July 2026.

FIXED INCOME FUNDS (Net Return After Tax)

1. Arvocap Almasi Fund — 16.24%
2. Sanlam Fixed Income Fund — 13.46%
3. Etica Fixed Income Fund — 12.63%
4. ICEA Fixed Income Fund — 11.45%
5. Nabo Fixed Income Fund — 10.91%
6. Zimele Fixed Income Fund — 10.35%
7. Kuza Fixed Income Fund — 9.84%

MONEY MARKET FUNDS (Net Return After Tax)

1. Nabo Money Market Fund — 9.98%
2. Cytonn Money Market Fund — 9.50%
3. Etica Money Market Fund — 9.13%
4. Lofty Corban Money Market Fund — 9.00%
5. Madison Money Market Fund — 8.96%
6. Enwealth Money Market Fund — 8.93%
7. Kuza Money Market Fund — 8.90%

What Do The Numbers Tell Us?

The results are quite revealing.

Fixed Income Funds comfortably win the return battle.

Out of the top seven Fixed Income Funds, six delivered net annual returns above 10% after tax.

By comparison, none of the top seven Money Market Funds crossed the 10% net return mark, although Nabo came very close at 9.98%.

That means investors in the leading FIFs are currently earning significantly higher returns than most MMFs investors.

But does that automatically make FIFs better?

Not necessarily.

The right choice depends on your financial goal—not just the return.

Which One Should You Choose?

Choose a Money Market Fund if your goal is:

• Building an Emergency Fund
• Creating Sinking Funds
• Parking idle cash
• Managing short-term cash needs
• Accumulating capital before making larger investments

Choose a Fixed Income Fund if your goal is:

• Children’s Education
• Home Construction or Purchase
• Buying a Car
• Retirement Planning
• Building a Financial Freedom Portfolio
• Business Expansion
• Wedding Planning
• Long-term Wealth Growth
• Generating higher passive income

That said, there is no rule that says you cannot use a Fixed Income Fund for certain short-term goals—

Provided you understand its investment strategy, liquidity features, and interest rate risk.

WhatsApp me “BEST MMF” or “BEST FIF” on 0703472299, for my best recommendations.

Alex Mwangi | The Cent Warrior | WhatsApp: 0703472299