With the slumping regional and global economies coupled with surging inflation, we all want a low-risk yet high-yielding short-term investment vehicle, and that’s where money market funds come in. One consideration I’ll discuss is the SC Shilingi Funds, a money market fund product by Standard Chartered and Sanlam.
The SC Shilingi Funds is not your typical money market fund. I’m saying that because unlike traditional money market funds, which run independently, the Shilingi funds is a platform offering money market funds by different providers and not just one.
SC Shilingi Funds employ a ‘Client Execution Only’ mode of operation, which, unlike traditional money market funds, allows you to trade unit shares, but you won’t get investment advice directly from the fund manager.
I’ll explain more about how the Shilingi Funds work later in this post. I’ll also share why this might be your best investment vehicle and what you can expect regarding the returns. You should be familiar with the money market fund after reading this SC Shilingi Funds review.
Overall, here’s what I’ll talk about:
- What’s the SC Shilingi Fund?
- How does the SC Shilingi Fund work?
- Should you invest in SC Shilingi?
- How do you open an SC Shilingi Fund account?
- How do you withdraw from the SC Shilingi Fund?
- Does Standard Chartered have a money market fund?
- What’s the interest rate for SC Shilingi?
- What can you use SC Shilingi Fund for?
Here we go!
In a rush? Below is a fact sheet for the SC Shilingi Money Market Fund.
SC Shilingi Funds Fact Sheet
|Fund Name||SC Shilling Funds|
|Fund Structure||Money market fund platform|
|Regulator||Capital Markets Authority|
|Fund Manager||Standard Chartered Investment Services|
|Base Currency||Kenya Shillings|
|Partners||Standard Chartered, Sanlam Investment and Bambu|
|Minimum Investment||Ksh 500|
|Minimum Top-Up||Ksh 20|
|Effective Annual Yield||9.6% (as of Jan 2023)|
|Arrangement Fee||1% of the investment amount|
Does Standard Chartered Have Money Market Fund?
Standard Chartered has a money market fund, but it’s a joint product between Standard Chartered Investment Services (the fund manager), Sanlam Investment, and Bambu. The money market fund product in question is the SC Shilingi Funds.
What is SC Shilingi Fund?
SC Shilingi Funds is a joint unit trust product between Standard Chartered Investment Services, Sanlam Investment, and Bambu that allows Standard Chartered clients access to a pool of money market investment opportunities.
This product allows you to invest as you save, and you can do it daily, weekly, or even monthly through the Standard Chartered mobile app.
How Does The SC Shilingi Fund Work?
The SC Shilingi Funds is a digital platform, as I mentioned, that features three key players: Standard Chartered Instrument Services, Sanlam Investment, and Bambu.
Standard Chartered Investment Services serves as the fund manager and, thus, is tasked with developing the investment portfolio on behalf of its members. Sanlam Investment East Africa offers investment management planning services, while Bambu, a Singapore digital wealth solution provider, handles the digital framework.
Overall, the Shilingi Funds platform works in a ‘Client Execution Only’ mode, which means you can buy and sell on the forum. You, however, don’t get investment advice from the fund manager, as is the case with most money market funds in the country.
Generally, you require a minimum investment of Ksh 500 to join Shilingi Funds, and you can top up anytime with any amount starting from Ksh 20. Regarding fees, the money manager, Standard Chartered Investment Services, charges a 1% arrangement fee. That is 1% of your invested amount.
What is the interest rate for Standard Chartered MMF?
As of the end of January 2023, the effective annual yield rate by SC Shilingi Fund was 9.6%. Things, however, have not changed much since then, as the current rate is 9.38%.
Let’s say you decide to invest an initial amount of Ksh 5,000 and make regular monthly top-ups of Ksh 500 for a year; your future investment value will be Ksh 11, 722.83 calculated at an effective annual rate of 9.38%.
That means the total interest earned over the 12 months will be Ksh 722.83 after pooling in Ksh 11,000 (initial investment plus regular top-ups).
Assume you decide to make an initial investment of Ksh 50,000 and regular top-ups of Ksh 1,000 every month for one year. Then, you’ll have accumulated a total of Ksh 67,197.93. The SC Shilingi fund interest rate earned over this period, calculated at an effective annual rate of 9.38%, will be Ksh 5,197.93, which isn’t bad.
Should You Invest in an SC Shilling Fund?
There are several reasons why investing in the Standard Chartered Shilingi Fund makes sense. They include the following:
- Decent returns – The effective annual yield rate in 2023, ranging between 9% and 9.6%, is decent. Yes, they aren’t the best compared to Etica Money Market Fund, Cytonn Money Market Fund, Or Madison Money Market Fund, all of which have coverage of at least 12%, but 9% is a decent number for a passive income source.
- Low-risk investment – The Shilingi fund invests in short-term securities and instruments like T-bills, fixed deposits, and commercial papers, which are naturally low-risk.
- Zero initial fees – With Shilingi funds, you don’t have to worry about advanced withdrawal or investment charges. You don’t have to worry about other additional fees once you pay the minimum deposit and the 1% arrangement fee.
- Convenient fund access – The fund is 100% digital, which means you can buy and sell from the comfort of your home with the SC mobile app. You can control your account if the app is on your phone.
- Low investment limit – You only need a minimum of Ksh 500 to join the SC Shilingi Fund. Even better, you can top up any amount from Ksh 20, making it easy to save and invest.
- High liquidity – SC Shilingi allows you to withdraw your money any time using the app or online portal and receive the money within three business days. That means you can attend to your financial needs much quicker.
How To Open Shilingi Fund Account?
There are several ways you can join SC Shilingi online, and they include the following:
Option 1 – Using the online portal
This option requires you to visit sc.com/ke and click on the Invest tab. Then, choose SC Shilingi Funds in the drop-down menu.
You can then click on the ‘Talk to Us’ green tab to fill out a short form. Alternatively, use this application link.
Ensure you first sign up for a Standard Chartered Bank account if you haven’t done that, as you’ll need to before submitting your application. The Standard Chartered team will get back to you with further instructions.
Option 2 – Using the App
Visit AppStore or PlayStore and download the SC mobile app. Install the banking app on your phone and SC Shilingi Funds. You can then follow the prompts to make an initial investment and submit the necessary details.
Remember, you can still use this digital app to open an SC account and access Standard Chartered-backed investments such as mutual funds and Treasury bills.
Moreover, you can use the fund to get the latest money market-related insights, which will help you make the most decisive investment call.
What Can You Use SC Shilingi for?
Let’s face it: the 9% return rate might not be the biggest attraction when comparing SC Shilingi to other money market funds, but we have to look at the big picture. I’m talking about using this fund as a savings and not just an investment vehicle.
With such an account, you can save up for any of these money goals:
1. Emergency fund
Are you having difficulty setting up an emergency fund? Why don’t you open an SC Shilingi account and make regular deposits until you reach your target?
Given that you can withdraw any time at no extra charge and have your money within three working days, you won’t be too late to attend to most financial emergencies.
2. College fees
SC Shilingi allows you to choose a savings plan of up to 5 years, which you can use to save up for your kid’s college fees. Remember, the money will continue earning interest and growing; you can withdraw anytime.
3. Sinking fund
The dissimilarity between a sinking fund and emergency fund is that the former is money saved up for a foreseeable future considerable expense while the latter is money saved up for unforeseen future expenses.
Frankly, saving for significant expenses like a car land purchase or building a house is never easy, and that’s where a sinking fund comes in.
You can use your SC Shilingi Fund as your sinking fund account to attend to these large expenses. Mark you, a sinking fund can also take care of these large future expenses to avoid messing up your budget.
- Wedding plan
- Family vacation
- Honeymoon or anniversary celebration
- New furniture
- New phone or laptop
- Home appliance
4. Chama Investment Project
You can also open an SC Shilingi Fund on behalf of your Chama or self-help group and save up for any project. That allows you to make regular contributions and watch your money grow, and the best part is that the funds can be withdrawn anytime.
5. Staff welfare
If you own a company, you can set up an SC Shilling Fund account for your staff’s welfare. That allows you to make regular contributions, even ask them to do it, and watch the money grow.
Once a staff has a pressing financial emergency, such as a burial arrangement or medical bill, you can tap into the savings and take care of it.
How to Withdraw from SC Shilingi Fund
Since SC Shilingi is digital, you can expect even the fund withdrawal to be digital. The easiest way to withdraw funds is by using the SC mobile app. Use the app to log into your SC Shilingi account and request the withdrawal.
Undoubtedly, the SC Shilingi Funds has exciting offers that make you want to invest. After all, the fund manager, Standard Chartered Investment Services, is a proven investment specialist and, even better, CMA-approved.
As Cent Warrior, we are here to provide our readers with the best investment solutions, especially those that are passive income-driven, and we believe money market funds like SC Shilingi fit the bill.
But still, we have many investment goodies on our online store that we invite you to check out. These resources will surely motivate you to kick start a successful investment journey wiser and more informed.