Faulu Microfinance Bank Diversifies into Money Market Fund with Promising Returns

Faulu Microfinance Bank has recently launched a Money Market Fund (MMF), marking a significant expansion into investment services that promises customers flexible and lucrative investment opportunities. The initiative, officially registered under the Capital Markets Authority, is part of a strategic move to enhance the bank’s wealth management portfolio. The fund, which was introduced with a yield of 16.32 percent per annum as of July 18, 2024, aims to cater to a broad spectrum of financial goals and preferences.

The introduction of this Money Market Fund represents a pivotal development for Faulu Microfinance Bank. Julius Ouma, the bank’s CEO, emphasized that this move is a key component of the bank’s broader strategy to advance its financial offerings. By leveraging the expertise and resources of the Old Mutual Investment Group (OMIG), Faulu aims to provide its customers with high-quality investment opportunities.

The MMF is designed to invest in short-term financial instruments, providing a competitive yield that reflects current market conditions. This product is particularly noteworthy for its accessibility; customers can start investing with a minimum of just Sh1,000. This low entry barrier is expected to attract a wide range of investors, including those who might have previously been excluded from such investment opportunities.

To participate in the MMF, prospective clients will need to open an MMF account in addition to a Faulu transactional account, unless they are existing customers. The investment process involves setting up a holding account through OMIG’s platforms, with contributions made via deductions from the customer’s transactional account. This streamlined process is designed to be user-friendly and efficient, ensuring that even novice investors can navigate it with ease.

Ouma expressed enthusiasm about the launch, stating, “We are pleased to introduce our Money Market Fund, which is part of the innovative financial solutions we are creating for our customers. This launch broadens the access of our clients to high-quality investment opportunities.” His comments reflect the bank’s commitment to expanding its financial product offerings and meeting diverse customer needs.

Anthony Mwithiga, Managing Director of Old Mutual Investment Group, also highlighted the advantages of the new fund. He assured customers that the MMF would provide not only competitive returns but also enhanced safety and liquidity. Mwithiga emphasized the group’s extensive experience in managing money market funds, a practice that spans several decades. “The Old Mutual Group has extensive experience in money market fund management stretching over decades, and we bring this expertise to ensure that Faulu customers get competitive returns on their investments,” Mwithiga said. He further noted that fund managers would be available to offer guidance on a diversified portfolio of money market instruments, enhancing the overall investment experience.

The new Money Market Fund aligns with Faulu Microfinance Bank’s vision of offering innovative financial solutions while expanding its customer base. By providing a competitive yield and maintaining accessibility to funds, the MMF balances profitability with financial flexibility. This strategic move not only enhances Faulu’s position in the financial sector but also represents a significant opportunity for customers seeking reliable and profitable investment options.

As Faulu Microfinance Bank continues to innovate and diversify its offerings, the Money Market Fund stands out as a notable advancement in its efforts to provide high-quality financial products. With the backing of Old Mutual Investment Group’s expertise, customers can look forward to a well-managed fund that offers both strong returns and robust investment safety.