1. What is Britam Money Market Fund?

The Britam Money Market Fund (MMF) is a collective investment scheme that invests in short-term, interest-bearing securities. It offers investors an opportunity to earn competitive returns while maintaining high liquidity.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( Principal \) — Initial investment amount (KES)
• \( Rate \) — Annual interest rate (in decimal form)
• \( Compounds \) — Number of compounding periods per year
• \( Time \) — Investment period in years
• \( FV \) — Future value of the investment

Explanation: The formula calculates how your investment grows with compound interest, where interest is earned on both the principal and accumulated interest.

3. Importance of Compound Interest

Details: Compound interest is powerful for wealth accumulation. The more frequent the compounding and the longer the time period, the greater the returns.

4. Using the Calculator

Tips: Enter principal in KES, annual rate as decimal (e.g., 0.08 for 8%), compounding frequency (typically 12 for monthly), and investment period in years.

5. Frequently Asked Questions (FAQ)

Q1: What's the minimum investment in Britam MMF?
A: The minimum initial investment is typically KES 5,000 with subsequent minimum investments of KES 1,000.

Q2: How often are interest payments made?
A: Interest is typically compounded daily and paid monthly.

Q3: What are the risks of money market funds?
A: While relatively low-risk, MMFs are not capital-guaranteed and returns fluctuate with market conditions.

Q4: How liquid is Britam MMF?
A: Very liquid - withdrawals typically processed within 1-3 business days.

Q5: Are there fees involved?
A: Yes, management fees (usually 1-2% annually) and possibly other charges which affect net returns.