₦airaland Forum

Pls House,
is there anyone here who can correctly show us how percentage interest in money market fund is calculated annually??

Let's say I invested 15million Naira in Stanbic IBTC mmf rate of 22.30% for one year,
with the condition of re-investing the accrued interest for just one year,

pls how much should I expect in total after one year, & after all charges have been deducted by the fund manager??


Also,
Aside the witholding tax, what are the likely
charges the fund manager will be deducting??

sky404:
Pls House,
is there anyone here who can correctly show us how percentage interest in money market fund is calculated annually??

Let's say I invested 15million Naira in Stanbic IBTC mmf rate of 22.30% for one year,
with the condition of re-investing the accrued interest for just one year,

pls how much should I expect in total after one year, & after all charges have been deducted by the fund manager??


Also,
Aside the witholding tax, what are the likely
charges the fund manager will be deducting??

One thing you should note is that the mmf interest rate is not consistent throughout the year. It may be 22% today and 20% tomorrow.

cc emmasoft

sky404:
Pls House,
is there anyone here who can correctly show us how percentage interest in money market fund is calculated annually??

Let's say I invested 15million Naira in Stanbic IBTC mmf rate of 22.30% for one year,
with the condition of re-investing the accrued interest for just one year,

pls how much should I expect in total after one year, & after all charges have been deducted by the fund manager??


Also,
Aside the witholding tax, what are the likely
charges the fund manager will be deducting??

enque:
cc emmasoft

@sky404 Please note the following about MMF.

- it's not like a fixed deposit.
- it's not tenor-based, investors determine the duration of the investment. it can be as short as 30 days or as long as one lives.
- rates are per annum but are daily valued and varies according to the valuation of the underlying assets. It's not a flat rate.
- true it can be compounded but you can't have specifics since rates are not fixed.
- there is no WHT charged on your interest on MMF - that is one of the advantages over fixed deposit apart from the higher rate.
- the rate you see displayed is net of mgt charges. Hence there is no other deduction on your interest.

With the above in mind, and reinvestment of interest in mind, if you invest 15m at today's rate of 22.3% you will have about 3,346,500 for 1 year and that means you will earn
about 9,168.49 every day till when you decide to liquidate. You are most like going to earn more if the rate goes higher within the given period or vice versa.

Click on the link on my signature to start investing or chat me up.

Join the winning fund

Invest now in the Norrenberger Dollar fund (NDF). it's currently 10.16% the highest in the industry.


Note that Norrenberger accepts naira if you don't have dollars, but your returns will be in dollars.

They also accept dollar cash deposits.

Get in touch to start investing.

emmasoft:
Join the winning fund

Invest now in the Norrenberger Dollar fund (NDF). it's currently 10.16% the highest in the industry.


Note that Norrenberger accepts naira if you don't have dollars, but your returns will be in dollars.

They also accept dollar cash deposits.

Get in touch to start investing.

Like they will convert the NGN to USD?

If yes, at what exchange rate?

Youngzedd:
Like they will convert the NGN to USD?

If yes, at what exchange rate?

The rate is determined in real-time at the moment you want to invest.

They can't state a rate till the time of investing because it fluctuates, which is obvious.

emmasoft:
The rate is determined in real-time at the moment you want to invest.

They can't state a rate till the time of investing because it fluctuates, which is obvious.

Dollar funds are best for those who earn in foreign currency.

Exchange rate fluctuation will use a straw and sip all the rewards if the exchange rate at the time is around ATH.

sky404:
Pls House,
is there anyone here who can correctly show us how percentage interest in money market fund is calculated annually??

Let's say I invested 15million Naira in Stanbic IBTC mmf rate of 22.30% for one year,
with the condition of re-investing the accrued interest for just one year,

pls how much should I expect in total after one year, & after all charges have been deducted by the fund manager??


Also,
Aside the witholding tax, what are the likely
charges the fund manager will be deducting??

Assuming interest remains 22.30% for the 1 year.

Principal N15,000,000
Interest
Month 1 N278,750
Month 2 N278,750
Month 3 N278,750

Principal N15,836,250
Month 4 N294,290
Month 5 N294,290
Month 6 N294,290

Principal N16,719,120
Month 7 N310,696
Month 8 N310,696
Month 9 N310,696

Principal N17,651,210
Month 10 N328,018
Month 11 N328,018
Month 12 N328,018

Principal N18,635,264

The interestbis extremely poor for a 15m investment.

xcitedjay:
Assuming interest remains 22.30% for the 1 year.

Principal N15,000,000
Interest
Month 1 N278,750
Month 2 N278,750
Month 3 N278,750

Principal N15,836,250
Month 4 N294,290
Month 5 N294,290
Month 6 N294,290

Principal N16,719,120
Month 7 N310,696
Month 8 N310,696
Month 9 N310,696

Principal N17,651,210
Month 10 N328,018
Month 11 N328,018
Month 12 N328,018

Principal N18,635,264

This calculation assumes compound interest, where the interest earned in each month is added to the principal, and the next month's interest is calculated based on the new principal balance.

Here's a breakdown of the calculation:

1. *Initial Principal*: ₦15,000,000
2. *Monthly Interest Rate*: 22.30%/year / 12 months/year ≈ 1.8592%/month
3. *Monthly Interest*: Principal x Monthly Interest Rate

For each month, the interest is calculated and added to the principal:

Month 1-3:
₦15,000,000 x 1.8592% ≈ ₦278,750
Principal becomes: ₦15,000,000 + ₦278,750 x 3 ≈ ₦15,836,250

Month 4-6:
₦15,836,250 x 1.8592% ≈ ₦294,290
Principal becomes: ₦15,836,250 + ₦294,290 x 3 ≈ ₦16,719,120

Month 7-9:
₦16,719,120 x 1.8592% ≈ ₦310,696
Principal becomes: ₦16,719,120 + ₦310,696 x 3 ≈ ₦17,651,210

Month 10-12:
₦17,651,210 x 1.8592% ≈ ₦328,018
Principal becomes: ₦17,651,210 + ₦328,018 x 3 ≈ ₦18,635,264

The final principal balance after 1 year is approximately ₦18,635,264.

This calculation demonstrates the power of compound interest, where the interest earned in each period is reinvested to generate even more interest in the next period.

Pojomojo:
The interestbis extremely poor for a 15m investment.This calculation assumes compound interest, where the interest earned in each month is added to the principal, and the next month's interest is calculated based on the new principal balance.

Here's a breakdown of the calculation:

1. *Initial Principal*: ₦15,000,000
2. *Monthly Interest Rate*: 22.30%/year / 12 months/year ≈ 1.8592%/month
3. *Monthly Interest*: Principal x Monthly Interest Rate

For each month, the interest is calculated and added to the principal:

Month 1-3:
₦15,000,000 x 1.8592% ≈ ₦278,750
Principal becomes: ₦15,000,000 + ₦278,750 x 3 ≈ ₦15,836,250

Month 4-6:
₦15,836,250 x 1.8592% ≈ ₦294,290
Principal becomes: ₦15,836,250 + ₦294,290 x 3 ≈ ₦16,719,120

Month 7-9:
₦16,719,120 x 1.8592% ≈ ₦310,696
Principal becomes: ₦16,719,120 + ₦310,696 x 3 ≈ ₦17,651,210

Month 10-12:
₦17,651,210 x 1.8592% ≈ ₦328,018
Principal becomes: ₦17,651,210 + ₦328,018 x 3 ≈ ₦18,635,264

The final principal balance after 1 year is approximately ₦18,635,264.

This calculation demonstrates the power of compound interest, where the interest earned in each period is reinvested to generate even more interest in the next period.

There's no difference between his calculation and yours

Pojomojo:
The interestbis extremely poor for a 15m investment.This calculation assumes compound interest, where the interest earned in each month is added to the principal, and the next month's interest is calculated based on the new principal balance.

Here's a breakdown of the calculation:

1. *Initial Principal*: ₦15,000,000
2. *Monthly Interest Rate*: 22.30%/year / 12 months/year ≈ 1.8592%/month
3. *Monthly Interest*: Principal x Monthly Interest Rate

For each month, the interest is calculated and added to the principal:

Month 1-3:
₦15,000,000 x 1.8592% ≈ ₦278,750
Principal becomes: ₦15,000,000 + ₦278,750 x 3 ≈ ₦15,836,250

Month 4-6:
₦15,836,250 x 1.8592% ≈ ₦294,290
Principal becomes: ₦15,836,250 + ₦294,290 x 3 ≈ ₦16,719,120

Month 7-9:
₦16,719,120 x 1.8592% ≈ ₦310,696
Principal becomes: ₦16,719,120 + ₦310,696 x 3 ≈ ₦17,651,210

Month 10-12:
₦17,651,210 x 1.8592% ≈ ₦328,018
Principal becomes: ₦17,651,210 + ₦328,018 x 3 ≈ ₦18,635,264

The final principal balance after 1 year is approximately ₦18,635,264.

This calculation demonstrates the power of compound interest, where the interest earned in each period is reinvested to generate even more interest in the next period.

Well done

@sky404 here it is

Allboiz:
There's no difference between his calculation and yours

Yes, there's no difference but sky404 wanted to know how the calculation is done

uwaifou:
Pls, is anyone here who operates ZEDCREST WEALTH money market funds in app?

Pls i need info and need to know how realistic they are?

Did you eventually try Zedcrest Wealth or get info about their mmf?

Guys, is the BluNest and this our Mutual funds the same?

Secondly, does stanbic mutual funds have the dollar investment, if it does, how much is the least someone can invest?

Thank you

Amycanada:
Guys, is the BluNest and this our Mutual funds the same?

Secondly, does stanbic mutual funds have the dollar investment, if it does, how much is the least someone can invest?

Thank you

The mutual funds on Blunest is the same Stanbic IBTC Asset management mutual fund reflecting on their app and web portal. They only added other investments options like TB and CP to make it robust.

Yes, Stanbic IBTC Asset Management has dollar Fund

Amycanada:
Guys, is the BluNest and this our Mutual funds the same?

Secondly, does stanbic mutual funds have the dollar investment, if it does, how much is the least someone can invest?

Thank you

The mutual funds on Blunest is the same Stanbic IBTC Asset management mutual fund reflecting on their app and web portal. They only added other investments options like TB and CP to make it robust.

Yes they do have dollar fund.

Amycanada:
Guys, is the BluNest and this our Mutual funds the same?

Secondly, does stanbic mutual funds have the dollar investment, if it does, how much is the least someone can invest?

Thank you

Yeah the BluNest is the same. I funded my mmf account with the BluNest web app this month.

Is anyone using Coronation mmf by Coronation asset management? How are they and what's their rate today? I've seen someone on Twitter claim it's 26.88% today but their website doesn't share that info and you have to sign up to get any info on their app

Hello all. Quick question please. While Investing in Stanbic MMF, can you top up your investment on a month to month basis, if that's possible, how does affect compiled interest and payouts.

Also, I'd clicked the option of quarterly payouts while signing up, how can I change that to the 'reinvestment option'

Amya:
Hello all. Quick question please. While Investing in Stanbic MMF, can you top up your investment on a month to month basis, if that's possible, how does affect compiled interest and payouts.

Also, I'd clicked the option of quarterly payouts while signing up, how can I change that to the 'reinvestment option'

For the second part, All you need do is send them an email and they would correct it accordingly.

For the first one, I believe so, they would just top up your principal as requested.

I hope it helps

temi4fash:
For the second part, All you need do is send them an email and they would correct it accordingly.

For the first one, I believe so, they would just top up your principal as requested.

I hope it helps

Thank you!

Amya:
Hello all. Quick question please. While Investing in Stanbic MMF, can you top up your investment on a month to month basis, if that's possible, how does affect compiled interest and payouts.

Also, I'd clicked the option of quarterly payouts while signing up, how can I change that to the 'reinvestment option'

1. You can top up at any interval and with any amount from 5k. Interest is always on the available balance each day; hence, your interest increases with top-up and decreases with part redemption.

2. To change your interest utilization mandate, send an email to customer care to indicate your intention; they will send you an account update form where you can now indicate your new option.

This is the method to change interest utilization for most fund managers.

emmasoft:
1. You can top up at any interval and with any amount from 5k. Interest is always on the available balance each day; hence, your interest increases with top-up and decreases with part redemption.

2. To change your interest utilization mandate, send an email to customer care to indicate your intention; they will send you an account update form where you can now indicate your new option.

This is the method to change interest utilization for most fund managers.

Thank you so much emmasoft

emmasoft:
1. You can top up at any interval and with any amount from 5k. Interest is always on the available balance each day; hence, your interest increases with top-up and decreases with part redemption.

2. To change your interest utilization mandate, send an email to customer care to indicate your intention; they will send you an account update form where you can now indicate your new option.

This is the method to change interest utilization for most fund managers.

Kindly educate me on this. If you select to reinvest your interest, that is effective every quarter correct? Which means the interest from January would not be added to your capital until 1st of April? Instead of waiting for 3 months for the interest to be reinvested, would you recommend to opt for monthly payout of the interest every month and then deposit the same back as top up? That way your capital increases every month, so as your gain. I feel like there is an opportunity cost by holding that interest for 3 months before reinvesting it. Please let me know your thought on this.

Reinvest interest is effective every month.
At the first day of each new month, your interest is added to your capital

Gvstavo:
Kindly educate me on this. If you select to reinvest your interest, that is effective every quarter correct? Which means the interest from January would not be added to your capital until 1st of April? Instead of waiting for 3 months for the interest to be reinvested, would you recommend to opt for monthly payout of the interest every month and then deposit the same back as top up? That way your capital increases every month, so as your gain. I feel like there is an opportunity cost by holding that interest for 3 months before reinvesting it. Please let me know your thought on this.

egojeny1:
Well done

@sky404 here it is

Which investment house does this?

Pojomojo:
The interestbis extremely poor for a 15m investment.This calculation assumes compound interest, where the interest earned in each month is added to the principal, and the next month's interest is calculated based on the new principal balance.

Here's a breakdown of the calculation:

1. *Initial Principal*: ₦15,000,000
2. *Monthly Interest Rate*: 22.30%/year / 12 months/year ≈ 1.8592%/month
3. *Monthly Interest*: Principal x Monthly Interest Rate

For each month, the interest is calculated and added to the principal:

Month 1-3:
₦15,000,000 x 1.8592% ≈ ₦278,750
Principal becomes: ₦15,000,000 + ₦278,750 x 3 ≈ ₦15,836,250

Month 4-6:
₦15,836,250 x 1.8592% ≈ ₦294,290
Principal becomes: ₦15,836,250 + ₦294,290 x 3 ≈ ₦16,719,120

Month 7-9:
₦16,719,120 x 1.8592% ≈ ₦310,696
Principal becomes: ₦16,719,120 + ₦310,696 x 3 ≈ ₦17,651,210

Month 10-12:
₦17,651,210 x 1.8592% ≈ ₦328,018
Principal becomes: ₦17,651,210 + ₦328,018 x 3 ≈ ₦18,635,264

The final principal balance after 1 year is approximately ₦18,635,264.

This calculation demonstrates the power of compound interest, where the interest earned in each period is reinvested to generate even more interest in the next period.

Which investment house offers this sweet deal?

Gvstavo:
Kindly educate me on this. If you select to reinvest your interest, that is effective every quarter correct? Which means the interest from January would not be added to your capital until 1st of April? Instead of waiting for 3 months for the interest to be reinvested, would you recommend to opt for monthly payout of the interest every month and then deposit the same back as top up? That way your capital increases every month, so as your gain. I feel like there is an opportunity cost by holding that interest for 3 months before reinvesting it. Please let me know your thought on this.

Please note that there is no option for a monthly payout of accrued interest. It's always done at the end of every quarter. The truth is that all accrued interest can only be utilized at the end of each quarter, whether you opt for reinvest or pay out.

However, every month, there is a transaction for reinvestment for those who picked that option, but the funds will only be part of your capital and begin earning interest at the end of each quarter.

Guys, please how long does a top up take to reflect?
I made the transfer via my stanbic mobile app at 11:26am today.

Amycanada:
Guys, please how long does a top up take to reflect?
I made the transfer via my stanbic mobile app at 11:26am today.

It's before 12:00 PM so it should be credited today if all is well. So, you should wait till later in the night or tomorrow morning to check it.

keeper303:
Which investment house offers this sweet deal?

GTB fund managers