According to a Cytonn Report, the Zimele Money Market Fund is amongst Kenya’s highest-yielding money market funds. Also known as the Zimele Savings Fund, the money market fund currently earns an annual interest of 9.56%, and you only need a minimum investment of Ksh 100 to get started.
Zimele invests the money in low-risk interest-yielding assets like bank deposits, treasury bills, and treasury bonds. The withdrawal is fast (within 1 – 3 days), and you can conveniently send your money to the bank or MPESA.
One more thing, you can liquidate all your investment if you so wish. But like every other money market fund, the returns are not guaranteed as they depend on the general performance of the money market.
The question, however, is, is Zimele the right money market fund or savings plan for you? If yes, how does it work, and how do you join?
Those are some of the concerns about Zimele that I’ll answer in this write-up. So, let’s get into it! But if you are in a rush, the fact sheet below gives you an overview of Zimele and its money market fund.
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Zimele Money Market Fund Fact Sheet
|Launch Date||1st August 1998|
|Portfolio Size||Over Ksh 1 billion|
|Fund Manager||Zimele Asset Management Company|
|Custodian||Standard Chartered Bank & Standard Chartered Security Services|
|Minimum Investment||Ksh 100|
|Management Fees||2% per annum|
|Auditor||Dennis Paul & Associates|
How Does Zimele Money Market Work?
The Zimele Money Market Fund (MMF) is ideally a savings plan, thus the name Zimele Savings Plan. And like every plan, the Zimele MMF requires you to make an initial investment (which is Ksh 100 minimal), and you can top up any time after that.
Currently, the investment earns an annual interest of 9.56%.
Zimele has a team of money market experts who invest the pooled money in low-risk high-yield assets like treasury bonds, treasury bills, fixed deposits, and bank deposits.
The returns from the investment (or interest income) get credited to the investors’ accounts after discounting the taxes and fees. Zimele charges an annual management fee of 2% but no hidden charges.
Several key players are instrumental in the day-to-day running and performance of the Zimele savings plan. They include the fund manager (Zimele Asset Management Company), Trustee (KCB Kenya), custodian (Standard Chartered Bank and Standard Chartered Securities Services), and auditor (Dennis Paul & Associates).
The fund manager researches potentially high-yielding market investments, advises the investors on the same and manages the securities portfolio.
On the other hand, the trustee oversees the custodian’s performance, and the custodian’s job is to hold the funds, securities, and asset documents. Meanwhile, the auditor reviews the financial records to ensure compliance with the law.
And when it comes to withdrawal, the process is swift, taking 1 – 3 days, and you can liquidate all of your investment or a part of it and transfer the funds to the bank or MPESA.
Advantages of the Zimele Money Market Fund
Now that you know how the money market fund by Zimele works, you may wonder if it’s worth investing in. Well, here are the key advantages of saving up with Zimele.
- Low investment limit – You only need to deposit a minimum of Ksh 100 to join Zimele. After that, you can top up at your own pace.
- Attractive yield rate – Zimele Savings Plan currently earns members a 9.56% interest annually, and it has been averaging around 9% in recent years, which is attractive.
- MPESA & bank withdrawals and deposits – Zimele lets you withdraw and deposit funds through M PESA and bank, which is convenient.
- Low risk – With the capital markets authority (CMA) regulating the money market fund and a team of professional investors taking the lead, the Zimele MMF is safe. The risk (which I’ll explain shortly) is just lower.
- The option of 100% liquidation – Zimele allows you to liquidate all of your investment if you wish to or just a part of it.
- Fast withdrawal – not only can you withdraw funds conveniently via MPESA and bank, but the whole process is quick. It only takes 1-2 days via MPESA and up to 3 days via bank.
- The principal does not fluctuate – While you expect the annual yield rate to fluctuate depending on the market forces, the principal amount does not.
- Professional investors – Zimele has a team of money market experts who invest the money in low-risk and high-yielding assets. That improves your chances of growing your investment.
The biggest risk with the Zimele money market fund and others like the CIC Money Market Fund, Britam Money Market Fund, and Sanlam Money Market Fund is that the returns are not guaranteed, at least not the yield rate.
That’s because the yield rate depends on the market forces and is, therefore, likely to fluctuate. Past fund performance does not necessarily indicate future performance, according to Zimele.
However, following recent performances, Zimele has averaged at least 9% interest annually, which is remarkable. Overall, while the interest rate is subject to fluctuation depending on the market forces, the principal does not.
How to Join Zimele Money Market Fund
You can open an account with Zimele for the money market fund plan by filling out an application form on their website. The form requires you to:
- Select the account type – You’ll need to choose Unit Fund from the available options.
- Select the fund type – This is where you select the Money market fund from the available options.
- Choose the application type – Choose the type of account you want from the options (individual, joint, family, group, and child/junior). Let’s go with the individual account here.
- Fill out personal details – The personal information includes your full name, ID/passport size image, and a front scan of your ID/passport.
- Other fill-out details – The additional information includes country, county, and employment status.
- Accept the terms – Go ahead and read through the terms and conditions and accept them if you agree.
- Apply – Click submit to send your application.
Zimele Money Market Fund Deposit
Zimele allows you to deposit via bank or MPESA through any of these routes:
- KCB – Branch (Custody services), account name (Zimele Unit Trust Money Market Fund and account number 110 – 238 – 8815
- Absa – Branch (Absa Towers), account name (Zimele Unit Trust Money Market Fund and account number 03077 – 500 – 6757)
- Standard Chartered – Branch (head office) account name (Zimele Unit Trust Money Market Fund) and account number 0105 – 016 – 758900.
- MPESA – Zimele Money Market Fund Paybill Number 501101
Using the Zimele Money Market Fund Calculator
Zimele has a Target Savings Calculator, Future Savings Calculator, and Savings Time Calculator on its homepage to indicate how much to save depending on your target and how long you’ll need to save, among other information.
Let’s start with the Target Savings Calculator;
This savings calculator gives you an estimate of how much to save monthly to reach your target savings.
Let’s assume your target savings is Ksh 1 million, which you want to save in 5 years. Then you’ll need to save Ksh 13,258.36 monthly, according to the calculator.
That’s assuming the interest rate is 9%, but it could be higher than it is today (9.56%)
Unto the Future Savings Calculator;
Suppose you make a minimum deposit of Ksh 100 and intend to save Ksh 1,000 monthly. Then you will have saved Ksh 12,616.59 in one year, according to the calculator. Again this is based on a 9% annual interest rate.
And lastly, the Savings Time Calculator;
Suppose your target amount is Ksh 1 million again, and you intend to make monthly deposits of Ksh 1,000 at an interest rate of 9%. Then you’ll have 75 months (or six years) to reach your target amount.
Remember that the calculator allows you to work with any amount, not just what I’ve illustrated.
Zimele Money Market Fund Withdrawal
Zimele lets you withdraw funds online on their portal (forms.zimele.co.ke), where you need to choose the account type (Unit Trust) and the unit trust type (Money Market Fund).
You’ll then need to fill out the relevant member details. Lastly, choose between MPESA and the bank and fill out the payment details before accepting the withdrawal terms.
Zimele Money Market Fund Contacts
You can contact Zimele using any of these contact routes:
- Head Office – Ecobank Towers 7th Floor, Muindi Mbingu Street
- Call – 0722 207 662 / 0734 207 662
- WhatsApp – 0733 111 106
- Facebook, Twitter, and Instagram – @zimeleAM
People Also Ask
1. What Is Zimele Money Market Fund?
The Zimele Money Market Fund is a low-risk yield-bearing savings plan that lets you save a minimum amount of Ksh 100 and earn an average interest of 9%.
2. Who Owns Zimele Kenya?
Dr. David Ndi is currently the chair of Zimele Assets Management Company. It’s, however, unclear if he is the owner or just a board member.
3. How Long to Withdraw from Zimele?
Withdrawals from Zimele to MPESA take 1 – 2 days, while bank withdrawals may take up to 3 days. That has been an improvement from the previous week.
4. How Do I Withdraw Money from Zimele to MPESA?
Making withdrawals from Zimele to MPESA is easy. Just go to their online portal (forms.zimele.co.ke), select the account type (Unit Trust or Pension Fund) and subtype, and specify if it’s an individual, group, or joint account.
Fill out the members’ details and choose MPESA. Then fill out the M PESA details and the amount to withdraw and accept the terms.
5. Is Zimele Money Market Legit?
Zimele is licensed as an investment company by the Capital Markets Authority (CMA) and regulated by the same body, proving they are legit. Furthermore, their Trustee is KCB, and the custodian is Standard Chartered, two reputable financial institutions.
6. Does Zimele Have an App?
Yes, Zimele has a mobile app you can download from Google Play. The app lets you sign up, invest, evaluate your progress, and access statements.
Above is just about everything about the Zimele Money Market Fund. With it, you can determine if Zimele is your right investment vehicle. If it is, go ahead and sign up, and hopefully, the market forces will favor you to see your investment grow.