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Passive Investing Options- Money Market Fund

Cowryvest Money Market Fund
Do you have some idle funds sitting in your bank accounts or under your bed for several weeks or months? Are you saving up for a project in a few months and just piling it up in a bank account? That six months savings you have been told to set aside to serve as emergency fund in case of loss of your job or something else, do you have it lying idle somewhere? If your answer is positive then you might want to consider a Money Market Fund.

A Money Market Fund is a type of mutual fund that invests in short-term, low-risk debt securities, aiming to provide investors with a relatively stable and liquid investment option. These funds are often seen as a cash-like alternative, offering higher returns than traditional savings accounts while maintaining a high degree of safety and accessibility". Note the words "liquid", "Safety" and "Accessibility". 

Essentially, Money market fund is a pool of funds run by Fund managers into which several investors invest their monies and get higher returns than with their savings accounts. It is liquid and accessible in that for most of them, they are more flexible than the regular Treasury bills and the likes- you can deposit to and withdraw from the fund in a more flexible manner than treasury bill and bonds. So it offers you higher returns than a savings account, is more flexible than other passive instruments, and is regulated. As at today, with Nigeria's Inflations rate at circa 23%, some Money Market Funds offer as high as 20% per annum interest (paid quarterly) on your investment. And if you are interested in compounding, you can reinvest your interest into the fund and have your principal and interest keep compounding until you need the money. 

The rates fluctuate and are regularly published in print media or on the Fund Managers Association of Nigeria's website, where you can see their daily pricelist. 
 
So instead of keeping your funds idle or being swayed by ponzi scheme operators, speak to your investment advisor and consider a Money Market Fund. A number of Fund managers have online presence and can be contacted for further advice. Money market fund might just be a great fit for your idle funds and investment objective.

You can view the daily pricelist of Nigerian mutual funds here: Nigerian Mutual Funds Pricelist

Thanks for reading, and Happy Investing! Feel free to drop your comments below. 

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