₦airaland Forum

brainhack:
Going through the trend, I was just about to mention this when I saw your post. Thank you bro.

Please guys, lets encourage competition and not over leverage on StanbicIBTC MMF. Competition is in our best interest. We are not working for StanbicIBTC.

I have hit the target amount for my savings in StanbicIBTC Money Market fund. I currently shopping for another good Money Market fund.

I haven’t gathered enough information to reach a decision. I am open to suggestions. I no fit pack money for only StanbicIBTC MMF, I no wan hear shoot bird mama fly

Nice debate to deliberate on

Things I look for while choosing which MMF (in no particular order)
1. Interest Rate.
2. Managers credibility (me too no wan hear "shoot bird mama fly" )
2. Management fees.
3. Easy cash out.

I plan to run 3 diff MMF along with my TB (now i have 2 stanbic and Investment one, would have opted for FBN but i get personal beef with them) STABIC dey fall my hand wella just hoping they improve.

still following this thread to first hand info from persons that has an active account with other funds manager (I don't really believe in any staff words cos my myself know how to sell my opinion to my wife

jayfierce:
I really don't see how increasing the top up to 5m can cause me to celebrate. Some people have already been topping up with that amount long before they made that announcement.

I would rather celebrate an increase in interest rates. I could also celebrate if Stanbic decided to reward loyal customers. It won't kill them to spend a little to say thank you.

I dey with you jare. Praying one day that i would be able to top up with that amount 5milla...

[quote author=AbbyE post=70089721]The interest is the difference between what was invested and what you have now. It may not always be equal to what you can see on the app as interest because a part of it may have been reinvested as principal

Yes, very correct!

haibe:
Very helpful.

One more thing.

Which is the actual interest. Is it the difference between what I invested, and the actual amount I see on the app - or the interest written with a small font below that amount

Also this might help...How I calculate my daily interest ( I do this once a week)

1. I find the difference between today's and yesterday's interest.
2. I divide the amount in (1) above by the the difference between the available balance and the available interest and multiply by 365 (days).
3. (2) above is the interest rate for that day and the difference between (2) above and the amount quoted on their website is their total % deduction.

haibe:
Very helpful.

One more thing.

Which is the actual interest. Is it the difference between what I invested, and the actual amount I see on the app - or the interest written with a small font below that amount

Yes to both, the difference between what you invested and the actual amount I see on the app is/should be thesame with the interest written with a small font below that amount.

Hope this helps

Toun2nl:
Is this net interest? Any idea about their mgt fees?

I think 0.05% of the accrued interest.

can someone confirm this?

haibe:
Can you tell us what the mgt fee and other deduction is? Do they deduct on redemption or on weekly interest accruals

The mgt fee/deduction is around 0.35% to 0.45%. (thats y i said they are not transparent)

They deduct on your daily interest, the interest paid is after their deduction and No they do no deduct on redemption, only the normal bank transfer charges.

Hope this helps

pinkgems:
It will be kind if I can get a response to this. Thanks

I subscribe to this VGIF in May 2018 and was paid roughly 14.2% in 1st week of July.

So I think its the average of the daily rates posted on their website.

Hope this helps

Ehuatamuigunisi:
Do not encourage monopoly by discussing only one Money market operator IBTC. Other good ones with better rates abound.

Sure bro. I mentioned the name, just to be specific of what my issues are.

If you also have tips on better MMF operators, you can share your experience. I would gladly love to explore other low risk investment.

I have MMF accounts with both SIBTC and investmentone for at least 3 months and I still prefer SIBTC, though they fall my hands in transparency regarding thier management fee and deduction.

Note: I'm a customer and not a bank worker

AbbyE:
Log in to the site and not the app
Click on redeem, you'd see the option to switch to new mutual fund , select that

Ensure you have your security answer ready

Then you'd proceed to this page and you'd have the option of selecting the mutual fund you want to buy. As I have already switched funds to Bond fund and Balanced fund, those options are not there but for you , it'll be

Thanks bro!

This solves it. Fast, simple and accurate.

Giving them 5 days to be added.

freeman67:
1 & 2.. I think the operators (Stanbic IBTC) knows what is necessary for them. Even if you intend to do another MMF sef they may still tell you to fill another form. The only thing they do is to for you is to add all your accounts in one portal. So you can view all of them in you online access.

3. I can't say for sure but somehow. The situation is similar to someone who already has a savings account with a bank and desire to add a current account. You will sure pass through the process of filling another form again.

4. I don't know why they always ask for that anyway but I am sure it's their policy. I think after contacting the bank and calling the customer care it is apparent that that is a requirement. It in the account there post your money to so it is necessary they open it first.

5. Yes the first account I had with them was SGIF. After a while I was'nt pleased with their interest so I needed to change to SIMMF.. I had to go through the process. Also, another time I needed to open do a separate savings other than the SIMMF I already had. Yes I was still asked to fill another of such form. It is normal with them.

Yes I quite agree with you, but this process should be simpler

Is it necessary to fill another application form to buy more funds with SIBTC

I already have MMF subscription and wanted to susbcribe to BOND Funds. Walked into their bank and the account officer asked me to fill another set of forms. Sent a mail to their customer care and they also sent me same form.

Since I have a savings and existing MMF account with SIBTC, why should I fill the form again? I think I should just made a transfer to the required new Funds account number.

Has anyone have this experience with SIBTC and is it the norms with them

jpphilips:
The thing is; the rates you read from FNM are not actual rates, some will advertise your yield plus their charges as their rates, while some are honest to remove their charges and quote your actual yield. perhaps most folks have tried and realized all that glitters ain't gold reason they backed off.

jpphilips,

your post sum it all on what I have been able to gather so far.

I diversify my funds across various MMF and Im also thinking about backing off, SIBTC MMF did not meet up to my expectation and Invest-one ABACUS so far is good...waiting for the VGIF to mature.

Like you said all that "glitters is not gold" maybe why some folks still prefer the NTB to MMF.

What about creating a pool of funds with like minds and invest in FGN Bonds (Not the savings bonds)

Miders:
Why do you say the TB option is better? Are you saying at the end of one year the investment in the money market fund will return less than my capital of N1million due to the monthly withdrawal of 10k?

where the monthly withdrawal might affect your earnings is if your MMF T&C requires more than one month holding period, but i think most MMF are just one month, so you can start withdrawing after one month with no charges.

I think where the TB will be better is when the values/rates of TB (including its brothers and sisters ) are dropping then the interest rate of the MMF with be dropping too (but capital is still preserved). Hope you dig?

But i think the risk to earnings is worth trying (100000% of us are praying and fasting using all means so that it will not drop

Miders:
Am not sure how these money market funds interests are applied, is it compounded with existing balance daily or just once on the initial capital annually? Which investment option would actually yield more returns within one year (365 days) in the two scenarios below.

a) Invest N1million in TB @12%, so as to use the interest of roughly 120k paid upfront to give my brother a monthly allowance of 10k for that year. At the end of one year from date of my investment which is the maturity date I get my initial capital back with no addition or subtraction.

b) Invest N1million in a Money Market Fund that yields an average of 12% P.A, withdraw only the 10k needed for my brother's upkeep every month till the end of that year. At the end of that year would i be left with exactly my initial capital, more than it or less than it? Am not sure because i dont know how the interest is applied considering my constant monthly withdrawal.

Gurus in the house please help analyse these scenarios if you know.

Hi Miders,

I am a novice investor like you, but based on the little experience i have, MMF has been doing above TB (as your funds are being invested in TB's, FGN Bonds, etc) over the years. And also have it at the back of your mind that you can reinvest your interest and MMF is free of withholding tax. Also MMF comes with some bonuses like dividends (i know for IBTC MMF,i dont know how they calculate that) apart from the interest.

So I believe the MMF Will do better over the one year period.

I am actually doing a personal research on that, I have a TB I bought at 11% per annum (365 days tenure), I reinvested the upfront payment for another 1 year tenure, use the 2nd upfront to invest in MMF and also run a MMF with same amount. As at the moment the MMF is performing better and still have another 10 months to get know the outcome.

Hope this helps.

feclela:
Investment is what I've been hearing for sometimes now, please can someone enlighten me on money Market fund and how it works.
Thanks

Making it as simple as possible, Money Market Funds (MMF) is an investment opportunity for Low risk appetite person like me

What the funds managers does is to invest your funds on fixed securities with guaranteed interest and preserve your capital. From my findings the interest rates has been higher that Govt fixed securities (Treasury Bills, etc) but still below inflation rates (for some of the fund managers)

Try the below links on how the fund managers are performing.

http://fman.com.ng/mutual-fund-price-list/

Hope this helps

I will try as much as possible to explain this in a little scenario:

1. Best friend
“A” and “B” are best friends

2. Best friend’s best friend(s)
“A” has other best friends “C” and “D”

3. Best friend’s best friend(s) friend(s)
“C” has a friend “E” and “D” has a friend “F”

The scenario
“A” knows “E” and “F”, then “F” requested “D” for a help that has to do with trust that only “B” is in the position to help out. “D” then passes the information to “A” and then “A” to “B”.

How then can “B” trust “F”?

My answer is simple common sense.

If “A” and “B” claimed to be best friends, then “B” will definitely know “F” to an extent of deciding whether to proceed with the help without relying on the trust relationship him/her and “A”. But in the case that “B” does not know “F”, how then can “B” trust “F”?

Your opinions are welcome and it could save a life/friendship.

Good morning.

Trust we are all having a nice holiday.

Can someone please confirm that the daily % appreciation of one's MMF investment is based on the capital only, not on the current balance (capital + Profits)?

Adayoung:
Good day house,I did topup in my mmf accout since Saturday and till now it has not been reflected in my mmf account. what should i do ?

I would suggest you walk up to any of their branch, they will rectify it. You can as well call their customer care.
Also, try as much as possible to know your Account officer, you can get his or her mobile number and call when you have issues like this.

Hope this helps

kneehighbootz:
Hello irookie. Please which money market fund did you open and with which bank did you open it?

As much as you asked a straight forward question, i wont give you a straight forward answer but will just guide you as i have been guided by Gurus here and it will enable you to know well who you have chosen to manage your funds.


https://fman.com.ng/ can guide you.

Also this was my guide when i was selecting with lots of advice on this thread. https://nairametrics.com/top-5-mutual-funds-in-nigeria-as-at-march-29-2018/

Note "Past performers of all the Fund managers is not a guarantee for future performance" , but i think one thing is certain (based on my findings, I hope I am right) MMF returns higher rates than TB.

chrysanthus07:
please I m a newbie..Have 150k 2 invest..whc bank will you advice? Thanks

Hi chrysanthus07

https://fman.com.ng/ can guide you (I dont want to advertise for the Fund managers )

Also this was my guide when i was selecting with lots of advice on this thread. https://nairametrics.com/top-5-mutual-funds-in-nigeria-as-at-march-29-2018/

I hope this helps and also remember that "Past performers of all the Fund managers is not a guarantee for future performance" , but i think one thing is certain (based on my findings, I hope I am right) MMF returns higher rates than TB.

A duty of care in Tort law is a legal obligation which is imposed on an individual or group (that can be likened to NAIRALAND) requiring adherence to a standard of reasonable care while performing any acts (Including all your post on NAIRALAND) that could foreseeably harm others.

In general term, a duty of care comes into place when one individual or group (as again likened to NAIRALAND) undertakes an activity which could reasonably harm another, either physically, mentally, or economically, such as we have seen on NAIRALAND, as well as specialized activities such as dispensing reliant significant advice on NAIRALAND that can result to severe loss and damage. But where a NAIRALANDER has not created a situation which may cause harm, no duty of care exists to warn others NAIRALANDERS of treacherous situations or prevents them from trauma; such acts are excluded.

Having this in mind NAIRALANDERS, WE OWE OURSELVES DUTY OF CARE

A very good morning.

I have been a silent follower of this thread and must say you are doing a nice job (wont mention the names of my ogas that i crush on )

I am a TB fan and would still be (we all know why), but now i have raised my risk level (up to stock market for my children sha ).

I just opened my MMF account (Thanks to all of you regular contributors ) I don break the yoke of my village that dont want me to make money.

Now to my question of the day... is weekend included in the daily interest paid? (saw an increment in my account this morning )