1. What is KCB Money Market Fund?

The KCB Money Market Fund is a collective investment scheme that pools money from investors to purchase short-term, interest-bearing securities. It offers higher returns than regular savings accounts while maintaining liquidity.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( Principal \) — Initial investment amount in KES
• \( Rate \) — Expected annual interest rate (in decimal form)
• \( Time \) — Investment period in years

Explanation: The formula calculates how much your initial investment will grow over time with compound interest.

3. Importance of Future Value Calculation

Details: Calculating future value helps investors understand potential returns, compare investment options, and plan financial goals.

4. Using the Calculator

Tips: Enter principal amount in KES, annual interest rate as decimal (e.g., 0.05 for 5%), and investment period in years. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: How often is interest compounded in KCB MMF?
A: Typically daily, but this calculator assumes annual compounding for simplicity.

Q2: Are there any fees deducted?
A: Most funds charge management fees (usually 1-2% annually) which would reduce actual returns.

Q3: Is the principal amount guaranteed?
A: Money market funds aim to preserve capital but are not guaranteed like bank deposits.

Q4: How liquid is the investment?
A: Typically allows withdrawals within 1-3 business days, but check specific fund terms.

Q5: What's the minimum investment amount?
A: Varies by fund, but often starts from KES 1,000 for retail investors.