If you are looking for a low-risk investment in Kenya that allows you to grow your savings while keeping your money accessible, the ICEA LION Money Market Fund is worth understanding. This guide explains how it works, who it is for, its benefits, requirements, and key considerations for investors.
What Is the ICEA LION Money Market Fund?
The ICEA LION Money Market Fund is a type of Unit Trust, which is a collective investment scheme where multiple investors pool their money together under professional management. In Kenya, Unit Trusts are regulated by the Capital Markets Authority (CMA), ensuring transparency and investor protection.
This fund primarily invests in interest-bearing assets such as:
- Treasury bills
- Fixed deposits
- Short-term bonds
It is designed for investors who want capital preservation, liquidity, and consistent returns, making it one of the safest investment options among Kenyan Unit Trusts.
Who Can Invest?
The Money Market Fund is suitable for:
- Savers looking for flexible access to funds
- Investors seeking monthly interest on their deposits
- Individuals who want to preserve capital while earning returns
It is ideal for both first-time investors and experienced savers who prefer low-risk investment options.
Key Benefits of the ICEA LION Money Market Fund
Low-Risk Investment
Your principal is protected, making it safer than other Unit Trusts. Returns vary daily based on market performance, but your capital remains intact.
Professional Fund Management
Experienced investment managers oversee your funds and provide guidance based on your goals and financial position.
Diversification
Pooling funds with other investors allows access to a variety of investments that might be unavailable to individual investors. This reduces overall risk.
Easy Access to Funds
You can withdraw your money anytime without penalties. Withdrawals under KES 10,000 via mobile money are processed within 24 hours, while larger amounts are sent to your bank account in up to 3 working days.
Flexible Investment and Saving
Start investing with KES 500 and top up any amount at any time. Use the ICEA LION DigiTrust portal to manage multiple goals and track progress on a single dashboard.
Transparent Governance
The fund operates under a trust deed and is regulated by the CMA. Investors’ rights are protected, and a trustee, custodian, and auditor ensure proper oversight and safeguarding of assets.
ICEA LION Unit Trust Options and Risk Levels
ICEA LION offers four types of Unit Trusts with different risk levels:
| Fund Type | Focus | Risk Level | Suitable For |
|---|---|---|---|
| Equity Fund | Listed companies on NSE | Medium to High | Long-term capital growth seekers |
| Growth/Balanced Fund | NSE + interest-bearing assets | Medium | Investors seeking balance between growth and liquidity |
| Money Market Fund | Fixed deposits, T-bills, short-term bonds | Low | Low-risk savers and income seekers |
| Bond Fund | Treasury and corporate bonds | Medium to High | Investors seeking periodic income |
What You Should Know About Fees and Benchmarking
- Management Fee: 0.0055% per day (~2% per annum), applied daily based on your account balance.
- Trustee: KCB oversees fund operations on behalf of investors.
- Custodian: Standard Chartered safeguards all fund assets.
- Auditor: Deloitte verifies the fund’s financial statements.
- Benchmark: The fund targets competitive returns relative to the 91-day T-bill yield.
Things to Keep in Mind
- Returns vary daily based on market performance.
- While low-risk, the fund does not guarantee a fixed interest rate.
- It is best suited for investors prioritizing capital preservation and liquidity over high returns.
The ICEA LION Money Market Fund provides a safe, accessible, and professionally managed investment option for Kenyans looking to grow their savings with low risk. Starting with as little as KES 500, investors can enjoy daily accrued interest, easy fund access, and the flexibility to save toward multiple goals.
To invest or learn more, visit the ICEA LION DigiTrust portal, call +254 719 071 999, or email unit-trusts@icealion.com.
