Aiico Money Market Fund is promising investors a guaranteed way to invest for consistent and competitive returns.
The Aiico Money Market Fund is an open-ended fund that invests in a range of low-risk money market securities such as treasury bills and fixed deposits.
The goal of this fund is to preserve investors’ capital while striving for medium to long-term capital growth.
If you’re looking to invest in the Aiico money market fund, then this article will help you understand some of the features of the fund so as to make a more informed investment decision.
Features of the Aiico Money Market Fund
The Aiico money market fund is specifically designed for conservative investors and beginner investors who want to earn guaranteed income on their investment with as minimal risk as possible.
The fund invests all its pooled funds into stable money market securities that guarantee medium to long-term capital growth and income.
These securities include risk-free assets such as treasury bills, fixed deposits, and commercial papers.
Safe to say, this money market fund is designed for the short-term investor at heart or those looking to consistently put money away into a savings-investment pot.
A Liquid Open-ended Fund
The Aiico money market fund is clearly a liquid open-ended fund.
Investors can subscribe whenever they want, make subsequent topup investments, and redeem their funds at any time.
This could be a great product for group savings or parties looking to pull funds towards short-term projects.
How to Invest With Aiico Money Market Fund
One of the great features of this fund is that it is 100% available online
Interested investors can subscribe to the Aiico money market fund by filling the necessary investment account forms on the Aiico capital website.
Thereafter, you can start making deposits and continue to enjoy 100% online access to the investment service.
The minimum investment amount for this fund is 10k Naira, which can be topped up subsequently.
Through the Aiico website, investors can request to redeem their funds, which will be processed in 5 working days.
How Much ROI Does Aiico Money Market Fund Offer?
Aiico money market fund offers stable returns for investors, however, returns are not specific due to the combination of a variety of money market securities.
Also, as a dividend bearing fund, investors should expect quarterly income from declared dividends.
Yearly dividends received in total could amount to about 0.5% to 1% additional return.
What I Like About Aiico Money Market Fund
Obviously, the dividend is a welcome addition that any investor would be pleased by.
I like that Aiico actually makes a transparent admission by differentiating the dividend return from the fund return.
This puts things in perspective and gives more clarity on what return an investor is getting.
Many other funds don’t do this. Instead, they just declare a flat percentage return for the investment period.
What I Dislike About Aiico Money Market Fund
There’s little to nothing to dislike about the Aiico money market fund.
However, if I’m to be very critical, I’d say that the expected return might be a turn off for ambitious investors.
The securities invested in are quite safe, but that means that returns are expected to be on the low side.
Investors should realistically expect a return of not more than 5% per year, most times way less than that.
But I understand that this fund is a great option for conservative or beginner investors looking to preserve their capital while earning safe and reasonable returns.
Can You Lose Money With Aiico Money Market Fund?
This fund is a pretty safe and stable mutual fund with a combination of securities that offer guaranteed returns.
I really do not see a way investors can lose money with this.
Except if you mean losing money by leaving money on the table by investing in a conservative fund such as this.
Should You Invest With Aiico Money Market Fund?
I’d recommend this for investors with a low risk appetite.
If you just want to save your money somewhere and earn above saving account interest rates with quarterly dividends to top it up, then this is your plug.
But if you’re a greedy investor looking to make fat returns while assuming considerable investment risk, then this fund could bore you to death.
A good mutual fund regardless.