Investor Review: Absa USD Money Market Fund
This review details an investment experience with Absa USD Money Market Fund. It also covers joining, depositing, and withdrawal, highlighting pros and cons.
Due to the personal nature of the content, the reviewer has opted to maintain anonymity.
The Absa USD Money Market Fund offers a low-risk investment opportunity for conservative investors seeking capital preservation and liquidity in US dollars. It invests in interest-bearing securities and short-term money market instruments, aiming to provide stable income with minimal potential for capital loss. The fund's strengths lie in its focus on high-quality, low-risk assets, offering immediate accessibility to funds. With no initial fee and a competitive 1% annual management fee, it presents an attractive option for short-term investments and those with a low-risk appetite, balancing consistent returns with capital stability.
My Experience Investing in the Absa USD MMF
I began investing in the Absa Dollar Fund with an initial investment. Over the next few months, I made two additional larger investments.
During the nearly 8-month period, my investment grew, and by the time I liquidated, my investment value had increased by about 1.9% compared to my total invested amount.
While a 1.9% gain in a money market fund over this period might seem modest, it's important to consider that these funds prioritize stability and liquidity over aggressive growth. In this context, the gain could be seen as a reasonably good outcome, especially compared to keeping the money in a non-interest-bearing account.
For more growth-oriented objectives, it's worth considering investment vehicles with higher potential returns, albeit with increased risks. You could explore the USD investment options we've previously discussed, such as Ndovu's ETFs or Standard Chartered Mutual Funds.
Depositing and Withdrawing Funds From Absa USD MMF
The minimum investment amount for the Absa USD Money Market Fund is $100. To get started, follow these steps:
Visit the Absa Asset Management webpage.
Download the "Unit Trusts Individual Application Form". If you are a corporate entity, download the "Application Form for Corporates" instead.
Fill out your information, ensuring that you clearly indicate the fund you'd like to invest in.
Email the completed form to Absa Asset Management at absakenyaassetmanagementcustomerservice@absa.africa.
Once you receive a confirmation email acknowledging receipt of your form, you can proceed to send the funds as indicated in your application.
In my personal experience, the initial deposit process took quite some time due to slow communication from the staff. To expedite the process, I recommend calling the Asset Management Department at +254 711 097 784 after sending your initial email. However, once my funds were received, I promptly received a welcome letter and a statement. Thereafter, I received automated statements at the beginning of every month.
Additional Top-Ups
To make additional investments into your Absa USD Money Market Fund, follow these steps:
Visit Absa Asset Management webpage.
Download the "Unit Buying Form" and fill it out, indicating the amount you wish to add to your investment.
Email the completed form to Absa Asset Management at absakenyaassetmanagementcustomerservice@absa.africa.
Withdrawals
If you need to withdraw funds from your Absa USD Money Market Fund investment, follow these steps:
Visit the Absa Asset Management webpage.
Download the "Unit Selling Form" and fill it out, specifying the amount you wish to withdraw.
Email the completed form to Absa Asset Management at absakenyaassetmanagementcustomerservice@absa.africa.
Disclaimer: The content of this blog is for informational purposes only and should not be construed as financial advice. Readers are advised to conduct their own research and seek professional guidance before making any investment decisions. The author and the blog will not be held legally liable for any actions or consequences resulting from readers' decisions to invest in any products or services mentioned herein.