Safaricom’s Ziidi Money Market Fund: Low-risk Investment with Transformative Potential

Safaricom’s newly launched investment product; Ziidi Money Market Fund (MMF) is generally low-risk low-return kind of investment. Unlike other products like Equity Fund investing in high-risk assets such as stocks, currencies, commodities among others, Ziidi MMF invest mostly in interest-earning instruments such as government securities.

In 2024, the MansaX shilling fund achieved a net return of 19.53% while their dollar fund returned 12.5%. The Kuza Momentum Fund returned a staggering 45.86%. The point is that returns are commensurate to the risk one is willing to take.

One might ask how these Funds are able to achieve such high returns. If you follow markets, you know that the US markets have been quite bullish these last two years. Even locally, the NSE performed very well in 2024. If you want to do due diligence, you can read the product fact sheets to understand what they invest in and how they do it.

READ MORE: Safaricom’s Ziidi Money Market Fund Accumulates Sh2.85B in Assets Within First Month Of Operation

At the end of the day, nothing is risk-free. Even keeping money under a mattress is risky. Ziidi is revolutionary because of the ease of entry and exit. Enrolment takes seconds. It takes the same time to
invest in Ziidi as it takes to send money to someone by MPesa. Zidi will resolve the problem we have often decried about MPesa deposits not earning interest.

It could in the end even force banks to raise their interest on deposits. This is one of the greatest injustices in the banking sector in Kenya. The real beauty of these collective investment schemes is the power of compounding. This allows your money to grow exponentially and in the long run, even a small effort can amount to much.

Please remember that the fact that I mention a product does not amount to an endorsement. Always do your due diligence and take risks which are aligned with your capacity and investment objectives.