Faulu Microfinance Bank has diversified into Money Market Fund (MMF), which will allow customers to access flexible and profitable investment opportunities.

The Fund, which is a collective investment scheme registered under the Capital Markets Authority, will allow customers to invest in short-term financial instruments, whose yield was on July 18, 2024, at 16.32 percent per annum.

Julius Ouma, Faulu Bank CEO, revealed that the fund is part of a strategic plan to advance the bank’s wealth management portfolio, leveraging the extensive expertise and resources of the Old Mutual Investment Group (OMIG).

The competitive investment options designed to meet the diverse financial goals and preferences of customers intend to broaden access to previously untapped segments as the fund can be set up with a minimum of Sh1,000.

To begin investing, prospective clients will be required to open MMF accounts and a Faulu transactional account (if not an existing customer). A holding account will be created through the OMIG’s platforms and furnished through deductions from the customer’s account.

“We are pleased to introduce our Money Market Fund, which is part of the innovative financial solutions we are creating for our customers. This launch broadens the access of our clients to high-quality investment opportunities,” said Ouma Faulu Bank’s CEO.

Anthony Mwithiga, Old Mutual Investment Group Managing Director, assured customers that they will get the best returns on their investments, including enhanced safety, liquidity, and the ability to diversify investments.

Investors can also benefit from competitive interest returns while maintaining accessibility to their funds, thereby balancing profitability with financial flexibility.

“The Old Mutual Group has extensive experience in money market fund management stretching over decades and we bring this expertise to ensure that Faulu customers get competitive returns on their investments. Our teams of fund managers will be fully available to give guidance across a diversified portfolio of money market instruments,” stated Mwithiga Old Mutual Investment Group MD.

The Money Market Fund was launched after the bank received a significant capital injection of Sh900 million from the Old Mutual Group, which strengthened the bank’s financial position and enhanced lending capacity.