“Alex, should I invest in the Acorn I-REIT or just stick to my Money Market Fund?”
That’s a question I get almost every week — and for good reason.
Both REITs and Money Market Funds are regulated investment vehicles in Kenya.
Both promise good returns. But they serve very different purposes in your financial journey.
Let’s break this down.
1) Money Market Funds (MMFs): For Short-Term Stability
Think of MMFs as your financial parking lot. They are ideal for:
- Emergency funds
- Sinking funds
- Short-term projects
- Temporary holding for capital before a major investment
They invest in short-term, low-risk instruments like:
- Treasury bills
- Fixed deposits
- Commercial papers
These assets mature in less than 18 months, giving you liquidity, stability, and consistent returns, typically between 11% and 17% per annum (as of 2025).
But here’s the truth: MMFs won’t make you wealthy.
They’ll keep you safe while you build wealth elsewhere.
They preserve your capital, protect your liquidity, and ensure you can respond to emergencies or opportunities quickly.
2) Real Estate Investment Trusts (REITs): For Long-Term Growth
Now, step into the world of REITs, a good example being the Acorn I-REIT. This is not a parking lot. It’s a real asset-backed investment vehicle.
The Acorn I-REIT pools money from investors to own and manage income-generating real estate, in this case, student accommodation housing across Nairobi.
These are Qwetu and Qejani brands.
Your returns come from two streams:
- Dividends: semiannual income distributed from rental profits.
- Capital appreciation: growth in the value of your units as property values rise.
Over time, a well-managed REIT like Acorn I-REIT allows you to build wealth tied to real assets, not paper promises.
Unlike MMFs, REITs are for:
- Long-term wealth creation
- Passive income from real estate
- Inflation protection through tangible assets
Access Acorn I-REITS via Vuka Investment Club Platform.
3) The Wise Strategy
You don’t have to choose one over the other. You need both, but in the right order.
- First, secure your short-term safety with a Money Market Fund. This ensures you have liquidity and peace of mind.
- Then, channel your long-term growth through REITs like Acorn I-REIT. This is where you build generational wealth: steady dividends, real assets, and capital appreciation.
MMFs protect your today. REITs build your tomorrow.
Final Thought
The mistake most people make is treating every investment as if it serves the same goal. Money Market Funds are your defense: safety and stability.
REITs are your offense: growth and ownership.
Wealth isn’t built by choosing one or the other. It’s built by mastering sequence and strategy.
So, before you decide, ask yourself:
“Do I need safety right now or growth over time?” Both answers are right, as long as you know which step you’re on.
Alex Mwangi | WhatsApp 0703472299
