More than 2 years have passed since I wrote my last article on investing with MMFs in Kenya
The latter achievement, has enabled me to take a sabbatical, to rest and learn new skills.
More importantly, I now have time to give back my financial knowledge.
You can use the table of contents below to navigate the article:
The first green cell in each row shows the first time one will accumulate a target of 500,000.
The template assumes that:
Funds invested are allowed to compound over the period i.e. No withdrawals
The rate is net of withholding tax and is constant over the period. A gross rate of 8.9% was used for the chart above. The gross rate is subject to change based on the market conditions. The NashMMF bot, covered below, will give you the latest money market fund interest rates in Kenya.
If you want to see how funds invested would grow over 10 years, then view this article on a Tablet or Computer
While my compounding template is great, it has a few limitations as it is based on Microsoft Excel:
- Genuine Microsoft Excel costs money
- Portability – need a PC for MS Excel
Further, information on money market Kenya specific rates is not readily available.
For example, you would have to search a million websites to only get limited information on the latest money market funds interest rates in Kenya.
Also, the information on the internet includes complex formulas and websites full of adverts.
It is also not tailored for how to calculate the returns for money market funds and other asset classes.
Therefore, I used my recent self-taught coding skills to create a better solution:
- Free and accessible on mobile (Android and iOS), computer and on the web.
- Gives you the latest money market fund Kenya specific rates.
- Easy to use money market fund calculator Kenya specific for 2021 and beyond.
- In built compound interest calculator Kenya specific for investments in MMF and other asset classes.
- Easy process to open an MMF account with the best money market funds in Kenya.
Read on to find out how to access the above and many more benefits that simplify calculating the compound interest for not only MMFs but other asset classes around the world!
Is the Bot only useful in Kenya
No it has full compounding functionalities. That is, it can be used in any country in the world. It can also be used to compute the compound interest for other asset classes such as:
Treasury Bills and Bonds
Mortgage Calculator or Loan Calculator
The possibilities are endless!
Money Market Fund Calculator Kenya Bot
If you are a subscriber to my Personal Finance Channel on Telegram, the money market fund calculator Kenya bot is not new to you.
Well, good news, I have added new functionality to the money market fund calculator Kenya bot. This includes the ability to calculate the returns of money market funds in Kenya.
It also has an in-built compound interest calculator that can be used to determine how your funds invested in any asset class will grow over time among many other features!
Read on to find out how to use the NashMMFbot to grow your wealth in Kenya.
Accessing the NashMMFbot
The link to the new and improved bot is accessible exclusively via my Personal Finance Lessons channel. See link to the channel below:
The money market fund calculator Kenya bot is FREE for all to use and is part of my mission to give back my financial knowledge and simplify money market funds in Kenya.
Using the NashMMFbot
This is a step by step guide on how to use the money market fund calculator Kenya bot on mobile (both iOS and Android), on the web and on your computer.
Total Time: 1 minute
Go to your preferred Telegram mode
Join the Personal Finance Lessons channel
After joining the channel, click on the pinned message which has a link to the free and up-to-date NashMMFbot.
Once you click the link, you will see the above welcome screen. Click on “Start” to continue.
List of Commands
Next type the command ‘list’ without the single quotes (”). This will show you a list of all the bot commands that are available for use.
(Optional): Clearing History
At any time, you can clear the history of the Bot. Lets say I want a fresh start without the contents generated above. Then all I need is to click on the 3 vertical dots at the top right corner as shown below:
- Money Market Fund Calculator Kenya Bot
- NashMMF Bot
In the next section, we will look at each command of the bot in detail.
Money Market Fund Calculator Kenya Bot Commands
Bot commands for the latest money market fund interest rates in Kenya
These commands prompt the money market fund calculator Kenya bot to give you the latest money market fund interest rates in Kenya.
They also lets you know if:
- the quoted money market fund interest rates are net of management fees.
- the quoted money market fund interest rates are net of withholding tax (WHT).
CIC Money Market Fund: cicrate
This command shows you the latest CIC money market fund interest rate as of [current_date format=’F Y’].
It will also give you the frequency with which CIC Money Market Fund compounds your money market investment.
Sanlam Money Market Fund: sanrate
This command shows you the latest Sanlam money market fund interest rate as of [current_date format=’F Y’].
It will also give you the frequency with which Sanlam Money Market Fund compounds your money market investment.
Other Money Market Fund Kenya: otherate
This command shows you the latest money market fund interest rates Kenya specific other than the Sanlam MMF and the CIC MMF Kenya rates above.
Bot commands to open a money market fund account in Kenya
These commands prompt the money market fund calculator Kenya bot to give you the latest signed application forms for the 2 best money market funds in Kenya. This includes step by step guidance and automations to make the process easy and eliminate paperwork.
Ensure your account is mapped under my financial advisor code to get a more enhanced wealth compounding report straight to your inbox.
My process to open your money market fund account is fully online. No need to meet an agent physically or go to the Fund’s offices. This keeps you safe and saves you time. It also makes it possible to open a Money Market Fund account even when out of Kenya.
Just send the completed forms and the required documents to firstname.lastname@example.org. I will then ensure that your money market fund account is opened within a day of receiving the email!
This command will give you the latest signed CIC money market fund application forms and the process to be mapped under my CIC financial advisor number 02581.
This command will give you the latest signed Sanlam Money Market Fund application forms and the process to be mapped under my Sanlam financial advisor code 04102.
Bot command for the compound interest calculator Kenya
This command makes the NashMMFbot the most innovative money market fund calculator in Kenya 2021 and going forward. It will help you visualize and make use of the power of compounding.
The NashMMFbot can calculate the compound interest earned from Money Market Funds in Kenya. It can also be used with other compounding machines such as Stocks, Bonds, Saccos and other investments in Kenya.
The functionality of the NashMMFbot is not specific to Kenya, it can be used to calculate compound interest earned with investments in other countries as well. It is very flexible to all types of investments in the world! It remains free to use as part of my mission to give back my financial knowledge.
You can however support the project by opening your investment accounts via the various links available in the bot or buying me a coffee.
When you type the ‘compound’ command, the money market fund calculator Kenya bot will show you the below screen:
<insert GIF or snippet>
This shows the format to use so as to calculate what an investment of x with deposits of y, deposited with a frequency of p and taxed at a rate of t will be in n years given a compounding frequency of z.
<insert GIF or snippet> -principal/deposit/deposit frequency/gross rate/tax/years/compounding frequency
Let’s dig deeper into what each of the fields means and make it even more simple to understand!
Deep dive of the ‘compound’ command
This is important. You have to start the calculation with a dash (–). This tells the bot where the inputs for the compounding calculation begin.
This is your initial investment. The assumption is, the principal won’t be withdrawn during the investment period.
This is the consistent deposit made over the investment period. It assumed that the same deposit will be made consistently throughout the investment period.
This is how frequently you deposit money into your investment. The more frequent the deposits, the faster the compounding effect. Generally, people aim to make monthly deposits to their investment.
This is the rate of return offered by the investment before taxes are deducted. It is assumed that this rate remains constant over the investment period.
This is the tax charged on the income earned by the investment. It is country and investment specific. The interest earned by money market funds in Kenya is charged a withholding tax of 15%. The bot will automatically calculate the compound interest based on the return net of the tax you add here.
This is your investment period in years.
This is how frequently the investment is compounded.
RULES OF THE ‘COMPOUND’ COMMAND
- Start the compound command with a – (dash)
- Separate the various inputs to the compound interest calculation using a / (forward slash)
- Don’t add commas in the numbers
- Don’t add any percentage signs to the gross return or tax rates
Illustration using the Nash 5x5x15 plan
Below is an illustration of how the money market fund calculator Kenya bot works.
I will use the CIC Money Market Fund and the Nash 5x5x15 set and forget plan to becoming a millionaire in Kenya.
Let’s go through the inputs of the Nash 5x5x15 plan if one was to use a money market fund as the underlying asset class:
As per the Nash 5x5x15 millionaire plan, the initial investment is Kenya shillings (Kes) 5,000.
Deposit and DEPOSIT FREQUENCY
As per the Nash 5x5x15 millionaire plan, the deposit is Kenya shillings (Kes) 5,000, deposited each month throughout the investment period.
The gross interest rate for the CIC Money Market Fund in [current_date format=’F Y’] is 8.7%. This rate is net of management fees but before withholding tax is deducted.
Interest earned from any money market fund in Kenya is subject to a withholding tax of 15%.
As per the Nash 5x5x15 millionaire plan, the investment period is 15 years.
For the CIC Money Market Fund, interest is earned daily and compounded monthly.
Based on the above, the text to input in the money market fund calculator Kenya bot would be:
<Add snippet and GIF>
Note: The gross rate above is for illustration purposes and may have gone up or down by the time you are reading this. You can use the NashMMFbot to get the latest money market fund interest rates in Kenya as of today.
Bot command to open a Nairobi Securities Exchange (NSE) CDS account in Kenya
This command helps you to open your Nairobi Securities Exchange (NSE) account digitally. No paperwork needed to open your Central Depository System (CDS) account and start trading on the NSE Kenya!
In the future, I will share a bot that helps with investments in the Nairobi Securities Exchanges (NSE) in Kenya. It will give the latest daily prices and metrics of companies listed on the NSE Kenya.
Other bot commands
This command generates a link to share the free bot with your family and friends
I have learnt a lot building this bot and the automated wealth compounding report for those mapped under my financial advisor code/number.
I have received a lot of request from members of my Personal Finance Lessons Group to automate their side hustles or boring work tasks.
This command will start the process to help you automate your side hustle or business for a very fair fee. I now also have the coding skills to:
- automate any template-based documents. That means automating invoices, periodic reports, contracts, financial statements and even having them sent automatically via email based on custom made triggers!
- Build bots to automate the marketing of your product or services. The bots can also be used to provide information to your clients hence reducing time spent with frequently asked questions.
The possibilities are endless 🙂
If you found this free tool valuable and would like to encourage me to add functionality for other investments in Kenya such as Saccos, insurance, pensions, shares/stocks on the Nairobi Securities Exchange (NSE), treasury bonds, index funds and other investments in Kenya, this command generates the number to Mpesa me a coffee 🙂
Learn about the New MPESA charges for sending or receiving money via phone, ATM or MPESA agent.
The guide includes a curated list of transactions that are FREE via MPESA!
In the next article, we will go further into how you can use the NashMMF bot to grow your wealth and become your own financial advisor in Kenya and or wherever you are in the rest if the world.
Other Valuable Guides
Here are links to other valuable content on this blog:
- Complete step by step guide to PayPal in Kenya
- Here is the link to the Free Personal Finance Lessons for Kenyans. The first 10 free lessons are ready for your learning!
- The Comprehensive Guide on How to Earn Money in Kenya
- Below are some short and sweet personal finance and investing lessons. Watch. Learn. Enjoy. Share.