Money Market Funds
Understand your investment before committing
This simulator helps you understand the potential returns of Money Market Funds (MMFs). By adjusting investment parameters, you can see how different factors impact your investment growth. MMFs typically offer stable, low-risk returns that can help preserve and grow your capital.
Investment Details
Choose a reputable fund management company
Your starting investment amount
Additional monthly investment
Duration of your investment
Advanced Factors
Typical MMF returns: 6-10%
Recent inflation rates: 4-6%
Current withholding tax on investment income
Investment Analysis
Total Invested
Ksh 460,000
Initial + Monthly Contributions
Total Interest Earned
Ksh 72,379
Gross investment returns
Total Fund Value
Ksh 532,379
End of investment period
After-Tax Returns
Ksh 61,522
Net returns after tax
Real Return Rate
10.73%
Return after inflation
Compound Growth
15.73%
Total percentage growth
Investment Cost Breakdown
How your returns are impacted
Typical rates range from 1% to 2.5% annually
Withholding Tax
Ksh 10,857
Tax Rate: 15% on interest earnings
Management Fees
Ksh 12,600
Annual Fee Rate: 1.5%
Net Investment Returns
Ksh 48,922
After taxes and fees
Fee and Tax Insights
- Withholding Tax: Applied to interest income as per current tax regulations
- Management Fees: Varies by fund, typically between 1% to 2.5%
- Net Returns: Reflect actual gains after accounting for taxes and fees
Note: Actual fees and taxes may vary. Consult a financial advisor for personalized advice.
Understanding Money Market Funds
Money Market Funds (MMFs) are low-risk investment vehicles that pool money from multiple investors to invest in short-term, highly liquid financial instruments like government treasury bills, bank deposits, and high-quality corporate debt.
Key Benefits
- Low Risk: Typically considered one of the safest investment options
- High Liquidity: Easy to withdraw funds with minimal restrictions
- Steady Returns: Consistent income through interest earnings
- Inflation Protection: Returns often outpace traditional savings accounts
Comprehensive Investment Insights
Risk Profile
Conservative Investor
Based on your investment size and strategy
Liquidity Score
0/10
Measures fund accessibility and withdrawal ease
Diversification
Medium Potential
Based on expected return rates
Detailed Investment Insights
- Your current investment approach suggests a conservative strategy that balances growth and stability.
- Liquidity Analysis: Limited liquidity: Significant restrictions or penalties for early withdrawal.
- With medium diversification potential, consider complementing this investment with other financial instruments.
Potential Investment Fees
- Management Fees (typically 0.5% - 2% annually)
- Performance Fees (common in hedge funds: 20% of profits)
- Transaction Costs (varies by investment type)
- Early Withdrawal Penalties
- Account Maintenance Fees
Note: Actual fees vary by investment type and provider. Always review specific terms.
Investment Growth Projection
Total Investment
Ksh 460,000
Initial + Monthly Contributions
Projected Final Value
Ksh 532,379
Based on current investment strategy
Total Gain
Ksh 72,379 (15.7%)
Potential investment growth
- Total Invested
- Projected Value
Investment Insights
- The visualization reveals how consistent monthly contributions can significantly boost long-term financial growth.
- Total contributions increase linearly (green area), while projected value grows exponentially due to compounding.
- Consistent investments help mitigate market volatility and provide a steady path to wealth accumulation.
Analogy: The Garden of Wealth
Think of investing like planting a fruit tree. When you first plant a seed (your initial investment), it starts small. You water it regularly (monthly contributions) and add some fertilizer (consistent strategy). In the beginning, growth seems slow and almost imperceptible.
As time passes, something remarkable happens. The tree doesn't just grow from the water and fertilizer you add, but it also starts producing its own fruits. These fruits drop seeds, which grow into new trees, and suddenly your single tree becomes a small orchard. Similarly, your investments don't just grow from your contributions, but the returns start generating their own returns – like fruits creating more trees.
The key is patience. Just as a fruit tree takes years to mature and become truly productive, investments need time to fully leverage the power of compound growth. The longer you nurture your investment 'tree', the more abundant your financial harvest becomes.
Note: Projected returns are hypothetical and depend on market conditions.
Investment Performance Summary
Total Contributions
Ksh 460,000
Total Fund Value
Ksh 532,379
Your investment is significantly outperforming inflation
Nominal Growth
15.73%
Real Return Rate
10.73%
Net Contribution Growth
Ksh 72,379
- Annual Return Rate: 8.00%
- Inflation Rate: 5.00%
- Investment Period: 3 years
Your investment is performing exceptionally well, substantially beating inflation.
This strong performance indicates a robust investment strategy that's effectively growing your wealth.
You're not just preserving capital, but actively building financial strength.
- Your current investment strategy is providing some protection against inflation.
- Consistent monthly contributions are helping to mitigate investment risks through dollar-cost averaging.
- A longer investment horizon could help smooth out performance variations and potentially improve returns.
This calculator is for educational purposes only. Always consult with a qualified investment professional before making financial decisions.