Standard Chartered Bank Kenya has partnered with Sanlam Investments East Africa Ltd (Sanlam) and Mangosteen BCC Pte Ltd (Bambu) to launch SC Shilingi funds, a low-ticket money markets fund proposition for Kenyans.
SC Shilingi Funds is a local unit trust offering where the Bank partners with local fund manager(s) and provide their fund(s) to Standard Chartered clients.
The Bank has currently tied up with Sanlam Investments East Africa Ltd to distribute the Sanlam Money Market fund. All investment products are thus distributed by Standard Chartered Investment Services Ltd, a wholly owned subsidiary of the Bank that is licensed by the Capital Markets Authority as a Fund Manager.
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How the SC Shilingi Funds Works
SC Shilingi Funds is a platform that offers unit trust funds in Kenya Shillings from various provider(s). A unit trust pools contributions of many investors into one large fund (pooled fund), which can then be invested in a variety of financial products including money market, treasury and corporate bonds, shares and property. Unit trusts are regulated by the Capital Markets (Collective Investment Schemes) Regulations 2001 and an independent trustee who is the registered holder of the scheme’s underlying assets.
Features of the MMF include:
- With as low as KSh1,000 and a maximum of KSh1 Million, customers will have access to an investment solution.
- The product is 100% digital and available 24/7 on SC Mobile app. No paper work required
- You can invest one-time anytime, weekly and/or monthly
- Daily interest and compounding monthly
- Customers have unlimited free withdrawals at anytime. It takes 1-3 working days once the withdrawal order is placed.
How to Start Investing in SC Shilingi Funds
- Download the SC Mobile Kenya app on Google play store or Apple Store
- Open a bank account with Standard Chartered by selecting open a banking account. Follow the steps. (If you are already banking with Standard Chartered Bank, follow from the next step)
- Log in to the SC Mobile Kenya app
- Click on the Investments tab and choose SC Shilingi Funds.
- Follow the prompts and steps to start investing
We are committed to driving financial inclusion & empower people to meet basic needs. With as little as KSh1,000, Kenyans can now start building an investment portfolio, or saving towards needs like housing, education, healthcare etc.
Edith Chumba, Head Consumer, Private and Business Banking at Standard Chartered
In addition, SC Shilingi Funds will combine a customer current account with the local currency Money Market Fund investment to provide client with attractive returns, higher than they would ordinarily get from a current account and/or savings account while maintaining a relatively high level of liquidity.
Shilingi Funds Interest Rates, Fees, and Taxes
The interest is calculated on a daily basis depending on the indicative interest rate published by the fund house. This rate is subject to change on a daily basis. The interest is then credited to your account as units every beginning of the month (within 3-5 days).
SC Shilingi Funds charges a one-time arrangement fee of 1% of the amount you are investing. For example, for an investment of KSh1,000, the arrangement fee will be KSh10. There is also an annual management charge by the fund manager as indicated in their respective factsheet.
Furthermore, you will pay withholding taxes on the interest you earn on your income. Withholding taxes are deducted at source, therefore, you will be credited with the net interest after all withholding tax deductions.
Standard Chartered Bank recently released a Wealth Expectancy Report that shows that 5 in every 10 Kenyans under 35 years have not set retirement goals. To bridge this gap, the Bank is using technology and digital innovation to increase participation and drive financial inclusion.
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