ARM Investment Managers are offering investors a guaranteed way to earn consistent ROI via the ARM fixed income fund.
According to the hedge fund, this mutual fund should be a no-brainer for investors who want to invest for the short and medium term while earning guaranteed return on their capital.
ARM fixed income fund invests in a variety of short-term fixed income securities, and reinvest part of their return to boost income for investors.
But is this the right mutual fund for investors who want to keep their money safe and yielding?
In this review, we’ll take a look at some features of the ARM Fixed Income Fund to understand how it benefits today’s investors and whether you should invest or not.
Features of the ARM Fixed Income Fund
The ARM Fixed Income Fund is a mutual fund targeted at low-risk investors looking to make consistent returns on their investment in the medium term.
The mutual fund invests its pooled funds into fixed income securities such as treasury bills, commercial papers, government and corporate bonds, and fixed deposits.
- FGN Bonds: 60% max.
- Corporate Bonds: 20% max.
- State Bonds: 20% max.
- Short Term Instruments: 50% max.
- Cash: 5% max.
It operates like an open-ended fund that gives investors the chance to start investing with an opening amount and then subsequently top up just like in a savings account.
How to Invest With ARM Fixed Income Fund
The fund is also fully accessible online, so investors can open an account via the ARM investment website by filling the account opening form and making deposits thereafter.
The required initial minimum investment amount is 5,000 Naira, with subsequent top up investment in multiples of 500 Naira.
The required minimum investment tenure is 1 month, which can be rolled over for long-term investors.
How Much ROI Does ARM Fixed Income Fund Offer?
ARM Fixed Income Fund doesn’t offer a specific ROI for investors on its platform. Returns are based on a sharing formula calculated at the end of each investment tenure.
According to ARM Investment Managers, 75% of profits from its investments will be distributed to investors on a pro rata basis, which is calculated based on the number of unit investments held by each investor.
Then 25% of that profit will be reinvested into the fund against the next investment tenure.
So, in practice, how much ROI you receive would depend on your investment amount compared to other investors in the pool.
If your investment represents 1% of the pool, then you’d get 1% return from the assigned 75% of the fund’s annual profit.
Likewise, if your investment represents 50% of the pool, you’d get a 50% return from the assigned annual profit.
Is ARM Fixed Income Fund Legit or Scam?
The company behind this fund, ARM Investment Managers, is a reputable hedge fund in Nigeria.
Not only do they boast some of the top corporate partners, they are also regulatory compliant.
They are registered with the Securities Exchange Commission (SEC) as investment advisers and fund/portfolio managers.
What I Like About The ARM Fixed Income Fund
I like that the fund comes with almost zero risk, and reasonably liquid.
This would be great for beginner investors trying to test the waters with mutual funds in Nigeria.
Also, it’s relatively very cheap to start investing with this fund. With just 5,000 Naira, you can open a portfolio and start growing your investment.
This means that this can be used as an illiquid savings product or a second savings account for keeping long-term money.
What I Dislike About The ARM Fixed Income Fund
Honestly, there is nothing to dislike about this fund, even if I want to be overly critical.
This is just a darn good investment product. Especially for beginner or conservative investors.
Can You Lose Money With The ARM Fixed Income Fund?
No way you are losing money with this fund.
It is a quite stable and secure fund, and operates almost like a savings account.
If you believe you can’t lose your money with a saving account in the bank, then you can also believe that your money is safe with the ARM Fixed Income Fund.
Should You Invest With The ARM Fixed Income Fund?
It’s a good option to have.
If you’re a risk averse investor looking to keep your money safe while getting some interest on it, then you should consider this fund.
At least, it’s better than leaving the bulk of your money to collect dust in your savings account.