How Loanappskenya Rates Money Market Funds

Loan apps kenya’s list of the best money market funds is determined by an in-depth research and robust data collection from 37 asset management and investment companies. We reviewed each company’s plan fees, performance, reputation, customer satisfaction, and more. This guide explains the categories and criteria we used to evaluate each company’s features and our scoring process for determining the best investment products offered by the companies.

Our editors and researchers independently evaluate all recommended products and services. If you click on the links we provide, we may receive compensation. Our advertising partnerships are not a factor in how we evaluate products, although they may affect the order of products you see listed in our articles.

How We Research Money Market funds

Loan apps kenya commissioned a 29-question survey through Pollfish to learn more about consumer behavior and attitudes regarding asset management and investment companies. The survey, which was conducted from Aug. 23 to Aug. 24, 2024, consisted of 500 people who had invested in money market funds within the past three years. 

We asked respondents which companies (or funds) have investors chosen and why, how much are investors paying in fees, and what is the value they receive, what types of investment challenges or goals (e.g., risk management, diversification, growth) are they addressing, has the company helped improve investment outcomes, such as portfolio returns or risk-adjusted performance, how do investors rate the importance of features like fee structures, fund performance, reputation, customer service, and additional tools (e.g., portfolio analytics, financial planning resources).

The insights gained from this survey informed the criteria we collected and the weights we assigned to each criterion to ensure we score the most important factors appropriately to determine the winning investments. especially the weights assigned to each criterion used in our scoring methodology. We also used the survey to ensure our reviews and “best of” list provide the most essential information for people considering starting an investment portfolio.

We identified 37 asset management and investment companies to include in this research project based on Loan apps Kenya’s prior research, a competitive analysis, and public interest through Google search trends. We also gathered findings on the Asset Management industry to help assess which companies to include. In our research on asset management and investment companies in Kenya, we consulted reports from the Capital Markets Authority (CMA) and the Retirement Benefits Authority (RBA). The CMA is responsible for supervising, licensing, and monitoring capital markets activities in Kenya, ensuring market integrity and investor protection. The RBA oversees the retirement benefits sector, regulating pension schemes and ensuring the security of retirement benefits. These sources provided valuable insights into regulatory compliance, market practices, and the overall information of asset management in Kenya.

We determined that the 37 asset management and investment companies met our minimum standards for online transparency and customer support. We collected 69 evaluation criteria for each company, resulting in nearly 1,200 data points, and we weighted and scored 799 data points for Investopedia’s rankings. The other data points were collected for background information and to inform our content. Including our survey analysis, the research process took place from Jan 1, 2024, to Feb. 7, 2024.

Data Collection and Scoring

After data collection and verification, we weighted and scored 44 of the 69 criteria to determine our best picks. Weights were determined through subject matter expertise and our asset management customer survey. Some of the research criteria we collected and scored were aggregated into combined factors (consumer review rating, for example), and some criteria were collected without being scored to enhance the editorial quality of our articles. 

We used the following method to generate our scores:

  • Each company was scored on an overall “Star Rating” scale of 0.00–5.00.
  • Data points are scored on a 0.00–1.00 scale
  • Binary criteria = [0,1]
  • Continuous criteria were scored such that the minimum data value was re-scaled to 0.00 and the maximum value was re-scaled to 1.00
  • Scaled criteria (e.g., 5-point) = [0.00, 0.25, 0.50, 0.75, 1.00]
  • Aggregated criteria scores were calculated based on scores of individual criteria, and the results were scored on a continuous scale.
  • Any data point that was not disclosed by a company was given a score of 0.

How Loanappskenya Rates Money Market Funds: Our Comprehensive Rating System

We understands that choosing the right money market fund (MMF) is a critical decision for individuals and businesses seeking secure and reliable investment options. To simplify the process and help you make informed decisions, we use a transparent and data-driven rating system. Below, we explain how we assess money market funds based on key performance categories and measurable data points.

Returns and Yield (35%)

Returns and yield are the most significant factors for investors looking to maximize their earnings from a money market fund. Our evaluation focuses on:

  • APY (Annual Percentage Yield) (20%): We assess the APY of each fund, prioritizing those that consistently outperform the market average. Funds with higher APY rates score better in this category.
  • Historical Performance (15%): Consistency is key. We review the fund’s returns over a 3-5 year period to identify stability and reliability in its performance.

Fees and Costs (20%)

Understanding the cost structure of a money market fund is essential to evaluate its overall value. We evaluate:

  • Expense Ratio (10%): Funds with lower expense ratios are favored, as they allow investors to keep more of their returns.
  • Transaction/Withdrawal Fees (5%): We assess whether the fund imposes fees for withdrawals or transactions and prioritize those with minimal or no charges.
  • Other Account Fees (5%): Hidden fees can erode returns. We rate funds that are transparent and low-cost more favorably.

Liquidity (15%)

Liquidity is crucial for investors who need quick access to their funds. We examine:

  • Ease of Redemption (10%): Funds that offer same-day or instant redemption options score higher.
  • Minimum Lock-In Period (if any) (5%): Funds with no lock-in periods or very short durations receive higher ratings.

Risk and Security (20%)

Investors prioritize safety when choosing money market funds. Our analysis considers:

  • Credit Quality of Portfolio Holdings (10%): We evaluate the credit ratings of the securities in the fund’s portfolio, giving preference to funds with AAA or highly rated assets.
  • Portfolio Diversification (5%): Diversified funds with exposure to multiple asset types and sectors receive higher scores, as diversification reduces risk.
  • Regulatory Compliance (FDIC Insurance or Equivalent) (5%): Compliance with regulatory standards and insurance provisions adds an extra layer of security, which we highly value.

Provider Reputation and Usability (10%)

The fund provider’s reputation and ease of use are also essential for a positive investor experience. We assess:

  • User Reviews and Satisfaction Ratings (5%): Feedback from investors about the fund’s reliability and customer service significantly impacts our ratings.
  • Digital Platform Usability (Web/App Features) (5%): Funds that offer intuitive and user-friendly platforms for managing investments score higher in this category.

How We Calculate the Scores

Each money market fund is rated out of 5 stars based on the weighted categories below. Here’s how the scores are calculated and converted to star ratings:

CategoryWeightExample Score (Stars)Weighted Contribution
Returns and Yield35%4.5/531.5%
Fees and Costs20%4/516%
Liquidity15%5/515%
Risk and Security20%3.5/514%
Provider Reputation10%4/58%
Total100%84.5% (4.2/5 Stars)

What Our Ratings Mean

  • 5 Stars: Outstanding—Best in class for security, returns, and usability.
  • 4-4.9 Stars: Excellent – Highly recommended with great performance across most categories.
  • 3-3.9 Stars: Good – Worth considering for most investors.
  • 2-2.9 Stars: Average – Acceptable but may have limitations in certain areas.
  • Below 2 Stars: Poor – Not recommended due to significant shortcomings. Each money market fund is rated out of 100% based on the weighted categories above. Here’s how the scores are calculated:
CategoryWeightExample ScoreWeighted Contribution
Returns and Yield35%9/1031.5%
Fees and Costs20%8/1016%
Liquidity15%10/1015%
Risk and Security20%7/1014%
Provider Reputation10%8/108%
Total100%84.5%

What Our Ratings Mean

  • 90-100: Outstanding – Best in class for security, returns, and usability.
  • 80-89: Excellent – Highly recommended with great performance across most categories.
  • 70-79: Good – Worth considering for most investors.
  • 60-69: Average – Acceptable but may have limitations in certain areas.
  • Below 60: Poor – Not recommended due to significant shortcomings.

Why Trust Loanappskenya’s Ratings?

Our goal is to empower you with objective, data-backed insights to select the best money market fund for your financial goals. By analyzing each fund’s performance, costs, security, and usability, we ensure that our ratings reflect real-world value for diverse investor needs.

Choose a money market fund confidently with Loanappskenya’s comprehensive and trustworthy ratings.