“Price is what you pay; value is what you get. Whether we’re talking about socks or stocks” – Warren Buffet.
January is the time of year when savings and investment opportunities are briskly sought after. A major obstacle to this is financial resources. Where will you get the money to invest and when exactly will you start saving. In comes i-INVEST, a money-flexible investment plan courtesy of Old Mutual that allows you to save and invest via a unit trust.
A unit trust, commonly referred to as UT, is a type of financial instrument where the money pooled from the investor(s) is used to buy and hold assets. In this case, profits realized from the assets are passed straight to you (the investor), rather than reinvesting them. i-INVEST also offers you a platform to register and manage a unit trust from your mobile phone.
There are 4 types of UTs available to invest in.
- Old Mutual Equity Fund – This focuses mostly in selected shares. The companies invested allow for reduced risk and revenue generation. Ideal for an investor with high risk appetite and a long-term horizon (5-7 years).
- Old Mutual Bond Fund – Much like the name suggests, the center of attention is mostly in bonds; specifically government and corporate bonds. They are the most secure investments since bonds guarantee returns. Ideal for an investor with low risk appetite and a medium-term horizon (3-5 years).
- Old Mutual Balanced Fund – This fund invests in both bonds and shares. The secure returns from government bonds and the high risk associated with shares are balanced for a stable income. Ideal for an investor with medium risk appetite and a medium–term horizon (3-5 years).
- Old Mutual Money Market Fund – The heart of this UT lies in money instruments. It includes investments in all the above and fixed deposit instruments. Ideal for an investor with very low risk appetite and a short-term horizon (6-12 months). Just in time for the next festive season.
The guideline on investing can be found here. Th mobile service is currently limited to Safaricom subscribers but plans are under way to include other networks. Just as most mobile-based applications work, you will have full access and control via your cell phone. The UTs function the same they ordinarily would. The main advantage of i-INVEST is that you relay all instructions via your mobile phone. Whether it is registering, investing, withdrawing or switching between the four funds, access is one button away. This allows for it to be done at any time. Bare minimums are;
- Minimum initial investment amount is KES 1,000
- Minimum top-up amount is KES 480
- Minimum withdrawal amount is KES 480
- Minimum switch amount is KES 480
Sparing KES 500 weekly could earn you a tidy lump sum that can be withdrawn when the need arises. Money transfer services have made it even easier to have money ready with you for transaction purposes.
Why not give this investment opportunity a shot?