₦airaland Forum

hias2012:
Interest rate and interest amount recapitalisation are two separate things entirely. However, a little knowledge of mathematics will show that different fund managers adopt different strategies to remain competitive. Think about this, one offers 12% today and puts the interest amount to work quarterly. Another pays interest at 11.5% and puts the interest amount to work weekly. Which of the two approaches would you prefer? You may need to do the math to know which of these two pays higher returns at the end of season. Looking at the interest rate alone will not answer that question. My advice, stick to one that best suits you, there is no point moving fund from one fund manager to another.

Perhaps you are not really checking the daily interest you receive despite the reinvestment, it daily interest keeps going down, when you X amount and you get Y interest, one should presume (Mathematically)that when reinvestment occurs the X +1 amount should give Y + 1 interest instead of the Y - 1 or Y interest. STANBIC is very poor in terms of interest compared to others. This is simple maths based on what we receive daily

lordnaruto:
just signed up with AXA Mansard now, It was quite easy , i did everything within 30 minutes, ive even transferred the money to their account, pending confirmation.

I have an issue thou, i followed the activation mail sent to me, and ive already created a password, however, i'm unable to sign in. Is it that it takes some time before i'll be able to access my account or something is wrong somewhere?

I did same and if i can remember correctly, the first link given you is for you to upload your KYC documents through the portal but that is not the monitoring platform for your account. When your payment is confirmed for your mutual money account, another link will be provided for you.

Yem0350:
I continue to imagine. Despite all the weekly reinvestment of stanbic, their rates are still very low compared to the like of mansard, arm and others.

Same here Bro

mikeopara:
Good Day All,

I'm having this thought, I will appreciate if someone can throw more light on this.

Aside from the profit which is paid on a daily basis, On the 16th,17th and 18th of this month, I got interests of 22k, 2k and 25k which was automatically reinvested to my capital without my available balance been increased . This I guess is standard for everyone who opted for their profit to be reinvested.

However, what if my interest was paid to my bank account and I reinvested to MF on my own? My capital will be increased and so will my available balance.

Please if the aforementioned is not inline, I would really appreciate further clarification.

Thanks.

This is typical with Stanbic for all those who choose reinvestment of profit. They do not do this quarterly but most times weekly. The balance amount remains the same but the inflow amount will increase which will also give rise to the profit value

alezzy13:
If only people would understand.

Understand what sir?
Other MMF are still giving interest above 11% but for the parst two days Stanbic have even gone below 11%
I got 10.56 and 10.98% pls tell me what i need to understand?

ajeleomo:
well i cant really say this is the case for me but i will continue to monitor to see when the 22% will stop
I will also notify the house when this happens

Just checked against yesterday and i got 20,196.05 which gave me 11.05% on ARM

kayrukky:
I don’t think it is high but it is reconcialiation. Some of your money were not calculated before. I notice this more in the first month after dividends payment. If you really want to confirm this better. Use the average rate for the month and calculate for the 19 days that have passed this month you will realize that the interest is not double.

It appears that ARM's rate for this week is high, but don't know what %.

Maybe cause I threatened to close my account lol, interest jumped from N470 TO N776, in matter of days.

So I cancelled my liquidation process to enjoy the small profits.

well i cant really say this is the case for me but i will continue to monitor to see when the 22% will stop
I will also notify the house when this happens

Segunade10:
Thanks so much, I did check the website and I downloaded the form but I didn't see where to fill the duration of my investment.
Also about the duration of investment, can I make it monthly, quarterly or yearly because I currently have one with GTBank which is for 6months with interest rate of 10%

I did not download form
i Just registered online and did bank transfer to the account details provided by them
Then submitted documents online for KYC

Segunade10:
Please I will like to know how I can get started with either AXA or ARM, will love to make some investment. Thanks in anticipation

I did mine through their website it was quite easy

elothaddi:
I don't believe it.

Please do the Maths with a capital of N20083.42. Those are my daily report amount for this week so far on ARM

20,127.42
20,139.82
20,152.38
20,164.93
20,177.48
20,189.97

Yem0350:
22%? Are you sure? That 22% might be for 2 days

Please do the Maths with a capital of N20083.42. Those are my daily report amount for this week so far on ARM

20,127.42
20,139.82
20,152.38
20,164.93
20,177.48
20,189.97

hias2012:
I advise you stay with stanbic. You don't need to liquidate your holding in stanbic for AXA. The difference doesn't worth it. Secondly the rates fluctuate. It cld be stanbic higher than AXA tmrrow. You can run both by splitting your subsequent stakes or inflows. I have both hence my advice. Hope you find this useful.

For over a month i have monitored these MMf accounts.... Stanbic is the poorest and has never gone above Axa, IONE nor ARM

KayPapi:
I did similar with ARM and AXA with 100k each.

Interest of AXA is twice that of ARM within a month. I closed my ARM, to use only AXA.

I recommend AXA.

Are you sure about this? i have ARm and Axa also but i have monitored this week and observed that i get about 22% on ARM while i get 11.8% averagely on Axa. IONE gave 12% averagely

ernie4life:
Try Afrinvest NDIF currently 16.55%

How true is this? and if it is then why is everyone saying Tbilss is the best investmestment then... kindly clarify and give us more indepth fact on NDIF Sir

Olakunle007:
Hey folks, I was in First Bank on Tuesday along with my brother to make an inquiry about First Bank fixed deposit. The woman who attended to us told us told us 4% for 30 days duration (1 month) which we are okay with.

So on Wednesday, we went there to fix #500.000 and the woman she would make it 5%. She asked us to come back for the certificate.

And today, this is what I see in the letter which my brother has already endorsed.

I'm thinking the calculation is not correct. Please explain better...

If this is deposited into Stanbic ibtc yeild Saving account, you will earn 6.5% per annum as long as you did not withdraw more than thrice per month, So for me this is a wrong investment Sir

I believe we saw another payment reflecting on our account this morning after yesterday interest was paid at close of business yesterday.
Kindly see what they have to say on this.... AXA MANSARD MMF

AXA Mansard
9:55 am
Hello, if you want to get more details about our Investment products & services, I’m glad to help.

omonuwa
good morning
AXA Mansard
Good morning

Thank you for contacting us

How may we assist you, please?

omonuwa
Please is it possible to get interest breakdown in my account coz i cant get that in the account statement
hello
AXA Mansard
Kindly confirm the plan you have with us

I have been able to confirm that you have our Money Market Fund

do stay on the chat to allow our Investment agent attend to you

You have been transferred to: AXA Mansard Investment.

omonuwa
MMF
AXA Mansard Investment
hello

omonuwa
hi
AXA Mansard Investment
did you make any inflow recently

omonuwa
yes today
AXA Mansard Investment
currently you have just xxxxxx in your account

omonuwa
yes since 21/9
AXA Mansard Investment
once we verify funds paid today, you will get funds confirmation

omonuwa
ok
AMITTXN285378
AXA Mansard Investment
do you still need the breakdown for the xxxxx naira

omonuwa
But is it possible to get breakdown of the interest paid into my account?
Yes i do
Bredown of all interest paid into the account so far
AXA Mansard Investment
okay

interest Amount Rate
xxxxxxx 12.06%
xxxxxxx 12.06%
xxxxxxx 12.06%
xxxxxxx 12.10%
xxxxxxx 17.93%
Total xxxxxxx

omonuwa
i can see above this value in my account as i got paid this morning which is not included here
AXA Mansard Investment
this value is till 25th

omonuwa
The first payment was for what date?
AXA Mansard Investment
the one for today is update later today

21st

omonuwa
i said i got paid this morning and current interest is at xxxxxxx
11.59%
AXA Mansard Investment
your payment for today won't reflex yet

it will be posted today and you will get an update on your account today

omonuwa
it is already in my account i can see this
AXA Mansard Investment
its only showing as booked balance

omonuwa
oh really
is this the new routine now?
AXA Mansard Investment
yes it is

omonuwa
ok
AXA Mansard Investment
we adapted this because client complained about not seeing their inflow till end of day

so now it shows as booked balance till it is updated at close of business

omonuwa
oh great to know this but it will be better emails are sent to all clients stating this in other not to generate confusion
AXA Mansard Investment
thanks for the suggestion

omonuwa
ok you are welcome
So will i get interest value on my deposit this morning for today?
Read
AXA Mansard Investment
yes you will

omonuwa
hmmm thanks
my issues are resolved. Thank you very much

Yem0350:
Have you forgotten that MMF interest is not constant. It can even increase to 17% . So, in terms of average, it can be higher that TBills at the end of the tenor

LOL
i can see yesterday was really a eye opener LOL
My calculation however was based on average interest rate but could be better

I think Trading Tbills along with MMF makes sense. See a brief calculation
Assuming a capital of N1,000,000 @13% for 364days tenor and reinvesting the capital immediately into MMF

Investment Plan Capital Interest Rate(%) No reinvestment on MMF(N) Reinvest MMF Profit(N)
TBILS 1,000,000.00 13 130,000.00 130,000.00
MMF 130,000.00 11 14,300.00 15,384.32
ANNUAL TOTAL PROFIT 144,300.00 145,384.32
ANNUAL JOINT YIELD 14.43% 14.54%

naijaobi:
What if not?
The bolded makes my statement clear that it's not a yardstick to measure outcome of a TB deal.

Bros you still dont get it
It is safer and profitable to buy higher than MMF interest rate to avoid the IF scenario as you cant predict the future rate

naijaobi:
You can have 13.5% for MMF today and 13% for TB. And tomorrow it may become 12.5 MMF, the next day 12%.
Which is now better?

Bros are you indicating MMF will not rise? What if you buy TB @13% for 182 days like u said and after 30 days MMF have risen to 13.5% and fluctuates around above 13% for the rest of the tenor, Will you call your TB trade a good deal?
This is the reason TB fixed rate MUST significantly be highly than MMF as their is tendency for MMF to rise

irookie:
Personally when I'm buying TB, its min of 182 days and the rate must be higher that what MMF offer. So my entry rate for 182 days TB is usually higher that of the MMF, if not I still keep my funds in MMF.

Exactly my point Bros if not it is not a good deal,

naijaobi:
This is not a good yardstick to measure since MMF prices varies daily whereas, the price you entered at the onset of a TB is what you will get until the end of it.

so one should accept 10% or even 11%? what will be your best rate entry?

irookie:
Good Morning ladies and gentlemen.

Trust we had a great weekend?

Just my little advice (again) on MMF and TB investment and please let all the newbie did a little read up form previous pages the answers you needed are already here....but me I love to answer same question anytime sha...it keeps this thread alive

1. TB investment is straight forward if you know you wont have a need for cash urgently, go for minimum of 182 days

2. Invest in 1st tier banks: my picks are FBN, STANBIC and GTB (I use STANBIC & GTB)...they usually have good rates...please when you hear ZENITH ruuuunnnn!!! (except they are better now sha, i divorced Zenith TB long time ago)

3. Use the interest you get in TB above to invest MMF: actually i dont really have picks in MMF but my current MMF funds manager are STANBIC, IONE and AXA

3. Currently I'm saving between 30% to 60% of my monthly salary. Once I have up to withdraw-able 100K in my MMF, I withdraw and invest in TB and interest again in MMF.

4. Currently I have only 2 month that I don't have a matured TB investment, other remaining 10 month, alert must drop ni and I reinvest ASAP.

The key is to know what your investment plans are.

I'm open to any questions, feel free to ask there are gurus in the house to answer you

NB: I am not a staff of any banks or financial institutions.

May God Almighty bless our hustle and grant us all our financial goals.

Good morning All, Also lets be mindful of the deals you get on TB, Always ensure the interest is more than that of MMF no matter the tenor else it is not a good deal

Yem0350:
Yes. Very correct. What happen if you are in urgent need of 500k?
The most important thing to be noted before going into tbills is that you won't need full or part of the money before expiration of the tenure. When it is needed, the benefit of MMF comes in. That is the only clause. Apart from this, tbills is better considering investing the upfront interest in MMF

Yes, this was earlier explained, that liquidity is a major concern depending on the person involved.
If the decision is to leave the cash in an investment for the tenor without any withdrawal then TBILLS is for you
If you might be in need of cash at any point during the investment period and will require you to withdraw cash then MMF is for you

Yem0350:
I will advice you don't put all into tbills. You might need cash unexpectedly

Correct me if am wrong

I think the way T-bills work is that you get your interest upfront.
Assuming you get a deal at 13% for 364days and you are investing N1,000,000
13% interest is N130,000 which is paid to you as soon as the deal is completed
You can then invest the N130,000 into MMF and can also add monthly funds to it to further increase your stake.

My Opinion

hardeydhoying:
Okay, thanks so much. 

I'll still like to hear other people's view.

If i may advise though am not into T-bills at the moment but it is simple arithmetic

MMF interest goes from 10.6 - 12.12% per annual so if you must invest in T-bills they must be ready to offer above this else it is not worth the wait. My opinion

We have been told that interest are paid on our principal daily BUT that must be after ALL charges are removed. If we are to go byhttp://fman.com.ng/archive/?mdocs-cat=mdocs-cat-32 then the prices displayed are after all charges or not? Can someone through more light on this

What i observed is that most of these MMF pays below the daily price but only for FBN Quest according to the 12.11%? how can this be explained?

see attached

Yem0350:
Fbn quest interest is very correct. I calculated it on what they gave me this morning.
I don't know about IONE
Let him confirm if it is gross or net
Also, how long does it take to redeem on IONE?

With this that puts FBNQuest on top while IONE is yet to be verified..... Someone with Abacus MMF should update us

Fbn Quest - 12.11%
AXA = 11.99%
ARM =11.66%
Stanbic - 11.24%

Olohunjedalo:
Investment One
Last updated 17th September. 12.05%

Lets have actual calculation on how this is achieved for FBN & IONE? we have all seen how falsified interest rate are being displayed coz i was told by CCS that IONE was 12% but 12.05% was displayed

Principal =?
Profit value as at yesterday=?

Redeemed:
@ ajelomo, thank you for your write ups and clarification. from all your posts, it seems you know more about stanbic IBTC MMF. On many occasions i have calculated their stated interest rate and found out that it doesn't tally with interest credited on my account on a daily basis.

Secondly, sometimes last year i received dividend/profit sharing on my account at the end of third quarter and i was told it's done on a quarterly basis as told by one of their staff/marketer, but i haven't received such interest this year. Any explanation about this?

Thirdly, what is the difference between Net Inflow and Net Asset Value?

Thank you as i await your response.

Thanks for the complement, however am not a banker and not familiar with all these terms so am afraid i cant answer your third question. On the second one, it is said your Dividend/Profit is paid into your MMF account if your choose REINVEST option when opening the account else it will be sent to your bank account provided. This is done every 3 months interval from the day your MMF account was officially opened.
If you only received once and your MMF account is older than 6 months then you need to get to them for resolution

Yem0350:
Find attached response to my mail

I have further had a conversation with an agent of AXA and the air is cleared, I was mislead by the earlier CCS according to the below conversation

AXA Mansard
11:34 am
Hello, if you want to get more details about our Investment products & services, I’m glad to help.

omonuwa
Good morning
AXA Mansard
Good morning

omonuwa
Please i chatted with an agent earlier, Kindly confirm when the Annual management fee will be deducted?
You have been transferred to: AXA Mansard Investment.

omonuwa
hello
AXA Mansard Investment
the management fee is deducted per annum

so the interest you get is after feed

after fees

omonuwa
is it deducted before the daily interest is paud or it is done once at the end of one year
AXA Mansard Investment
its is deducted daily

omonuwa
oh ok thanks
AXA Mansard Investment
so the interest you get is after fees

omonuwa
so in other words the interest was suppose to be 13.24 and after the deduction of 1.25% the interst of 11.99 was paid 13.24 - 1.25 = 11.99
AXA Mansard Investment
1.15 actually

omonuwa
oh management fee of 1.15% was deducted and not 1.25%? why was that?
hello
AXA Mansard Investment
am here

so let me explain this again. the management fee on the money market fund is accrued daily for what is to be charge at the end of the year

which means whatever rate applied that day minus management fee is what the client gets

omonuwa
ok thanks
AXA Mansard Investment
assuming the rate is at 13.22 - 1.15 = 12.07%

the client gets 12.07% on his/her investment

omonuwa
ok noted


This means that

AXA = 11/99%
ARM =11.66%
Stanbic - 11.24%

Yem0350:
I laid a complain this morning and I was told it will be corrected within 24hrs. Meaning, I was being given low rates since all this while.
Thanks so much. If not for you, I wouldn't know.

I am glad you could benefit from our conversation. This is the power of information sharing....