Safaricom Mali Unit Trust Fund: One of the largest telecommunication companies in the region, Safaricom has shown consistent growth over the decade, including a constant introduction of new products.
The company is now offering direct investment products to its customers, a move expected to be a game changer in the financial industry.
Safaricom has partnered with Genghis capital, one of the CMA-regulated brokers in Kenya, to provide customers with an opportunity to invest in the Mali Unit trust, with KCB and SBM as the trustee and custodian banks respectively.
What is Mali Unit Trust?
Mali is an investment product that allows M-PESA users to invest in Unit Trusts with as low as KSH 100 and earn daily interest. Mali can be accessed via the *334# ussd shortcode or the Mpesa App.
Not unlike a SACCO, Mali is a collective investment whereby Safaricom collects money from interested investors and invests it in stocks, securities, and other options. Profits are then distributed to the investors.
The Unit Trust promises returns of 10% p.a., with the caveat that various risks are associated with the investment.
The beauty of Mali is that you can track the interest your money earns daily. Also, you can access your funds at any time of the day, meaning you can deposit and withdraw at your convenience. Finally, there are no transaction fees for depositing or withdrawing from the unit trust.
Consequently, it’s a good place to hold idle cash, not unlike Mshwari or KCB Mpesa.
Mali Investment trust is open to all Safaricom users above 18 years old. However, you must have been a registered Mpesa user for at least three months.
You can deposit as little as Sh. 100, with an interest of 10% annually. The maximum investment amount is Sh. 300 000 per day.
One of the advantages of this Fund is that you can withdraw partial/full amounts of your investment capital at any time with no transaction fees.
Mali allows you to invest easily, seamlessly, and on your phone.
To start on Mali Investment, Dial *230# on your Safaricom line and choose the option of Mali. Alternatively, you can log into the Mpesa app, where you will find the Mali option under ‘services.’
According to the terms and conditions on Safaricom’s website, Mali investors will be charged the following fees:
The unit trust levies a management fee for managing the investment fund. Its purpose is to compensate the fund managers for their time and expertise in managing the investment portfolio.
Safaricom Uses Genghis capital as its investment manager. Their management fees are 2%p. a
A trustee manages assets on behalf of a Unit Trust. The trustee here is KCB bank, which charges 0.2% per annum.
These are charged by the custodial bank, which the Unit Trust appoints to offer custodial services to the Fund. In this case, the custodian is SBM Bank (Kenya), which charges 0.15% per annum, subject to a minimum fee of Ksh 10 000 per month.
15% of the interest earned.
For full clarifications, investors are advised to refer to Mali Trust Fund terms and conditions.
Returns on Sh. 100 000 for 1 Year
If you invest Sh. 100 000 in the Mali Unit Trust fund for one year at an interest of 10%, your money will earn Sh. 10 000 interest.
However, you will be deducted the following:
- Management fee of Ksh 2 000
- Trustee fees of Ksh 200
- Custodial fees of Ksh 150
- Withholding tax of Ksh 1500
Total deductions would be Ksh 3850, which, subtracted from your interest of Ksh 10 000, would leave you with Ksh 6150.
Therefore, after investing Ksh 100 000 in Mali Trust Fund for a year, you would have Ksh 106 150 in your account.
The deductions are subject to change, depending on various conditions. Typically, the more you invest, the higher the returns.
Apart from Mali Unit Trust, other Money Market Funds in Kenya include NCBA Money Market Fund, CIC Money Market Fund, Madison Money Market Fund, Zimele, CIC, and Cyton.