All You Need to Know About Sanlam Money Market Fund

In recent years, Money Market Funds (MMFs) have become increasingly popular among Kenyans seeking better returns than traditional savings accounts.These funds pool money from multiple investors and invest in low-risk, short-term assets like government securities, treasury bills, and fixed deposits. 

This conservative approach ensures diversification while offering steady, modest returns. In this series, we are looking into some MMFs available for Kenyans. Previously, we looked into the Etica MMF, Ziidi MMF, Cyton MMF, and Nabo MMF. Today, we are looking at The Sanlam Money Market Fund (MMF).

The Sanlam MMF, is a low-risk investment vehicle designed to offer capital preservation, steady returns, and liquidity. Managed by Sanlam Investments East Africa, the fund aims to provide higher returns compared to average bank fixed and call deposits while allowing investors the flexibility to access their money without losing accrued interest.

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Key Features of Sanlam MMF

• Minimum Investment: Ksh2,500 for initial investment; top-ups from KES 1,000
• Risk Profile: Conservative
• Interest Calculation: Daily accrual, compounded monthly
• Income Distribution: Paid out monthly
• Portfolio Size: Ksh56.9 billion (as of January 2025)
• Annual Management Fee: 1.5%

Sanlam MMF Performance

As of January 31, 2025, the fund's performance stood at:

• 1-month return: 1.2% (gross)
• 12-month return: 16.8% (annualized)
• 3-year return: 13.8% (annualized)
• 5-year return: 13.4% (annualized)
• Since inception: 10.0% (annualized)

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Who is the Sanlam Money Market Fund Suitable For?

The fund is tailored for investors seeking:

• Capital Preservation: Risk-averse investors keen on protecting their principal.
• Emergency Funds: A safe place to store cash with quick access when needed.
• Higher Returns than Bank Deposits: For those looking for better yields compared to fixed and call deposits.
• Short-Term Investment Options: Immediate liquidity without a lock-in period.

How to Invest in Sanlam MMF

Investing in the Sanlam Money Market Fund is straightforward. You can start with as little as Ksh2,500 and top up from Ksh1,000. Here’s how to get started:

1. Visit Sanlam Offices in Upperhill, Nairobi for a physical application.
2. Contact Sanlam Customer Service on call, whatsapp or email.
3. Online: Explore more details via Sanlam's website or social media.

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Important Considerations

• Returns are not guaranteed: Past performance does not guarantee future results, and unit prices may fluctuate.
• Liquidity risks: While you can withdraw anytime, in certain extreme situations, the right to redeem units may be suspended.
• Regulation: The Capital Markets Authority (CMA) oversees the fund but does not guarantee its financial soundness.

Conclusion

The Sanlam MMF offers a secure and flexible investment option for individuals seeking to preserve capital and earn steady returns. With professional asset management, a diversified portfolio, and competitive returns, the fund continues to attract risk-averse investors looking for reliable short-term investments.

For more information, reach out to Sanlam Investments East Africa or visit their website.

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