CIC Money Market Fund | CIC Insurance Group | CIC Kenya (2024)

FAQs

Is CIC money market fund safe? ›

The CIC Money Market is a low-risk fund that invest in a diversified portfolio of short-term interest-earning instruments.

Liquidity: The client is able to withdraw their funds at short notice with no penalty fees. Flexibility: The client is able to switch or transfer funds to another fund that he/she may have with CICAM. Security: The fund invests in government paper and liquid instruments.

Insurance. Since money market funds are investment products, they're not insured against loss by the FDIC or NCUA. Your investment could lose money.

9. How long does it take to receive funds once a withdrawal has been made? Withdrawal request received by 9.00 am is executed the same day & funds are transferred to the client's bank account within 2-4 working days.

Most MMFs offer returns on investments ranging from 7.0% to 10.6%. The current inflation rate is at 6.5%, meaning that the returns from the MMFs are inflation beating. They also provide higher returns than bank deposits.

Because they invest in fixed income securities, money market funds and ultra-short duration funds are subject to three main risks: interest rate risk, liquidity risk and credit risk.

Can you take money out of a money market fund without penalty? ›

You can withdraw your cash at any time without penalties. Higher-yielding than bank savings.

You can withdraw money from your money market account whenever you'd like. However, your bank may place limits on how many withdrawals you can make in a single statement period. Additional withdrawals typically incur a fee.

The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category. Deposits held in different ownership categories are separately insured, up to at least $250,000, even if held at the same bank.

Disadvantages of money market accounts

For example, you often won't earn as much with a money market account as you would with a traditional CD because the CD has a time commitment: The bank will pay you more in exchange for locking up your funds longer.

However, this only happens very rarely, but because money market funds are not FDIC-insured, meaning that money market funds can lose money.

Vanguard Treasury Money Market Fund

This fund only invests in US Treasuries and repurchase agreements insured by the federal government, making it among the safest in a category of relatively safe investments. The weighted average maturity of the fund's holdings is 43 days.

How safe are money market funds? There is little risk associated with money market funds. The U.S. Securities and Exchange Commission (SEC) mandates that only the highest-credit-rated securities are available in money market funds.

Money market funds can protect your assets during a recession, but only as a temporary fix and not for long-term growth. In times of economic uncertainty, money market funds offer liquidity for cash reserves that can help you build your portfolio.