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Why you shouldn’t ditch MMFs despite the falling returns
Equities and fixed income funds, by contrast, are built around different risk-return dynamics — from issuers’ ability to meet obligations to companies’ earnings capacity and capital gains potential.
As yields on money market funds (MMFs) ease, investors are increasingly rotating cash into higher-return assets such as equities, fixed income and alternative investments. The shift is understandable: many Kenyans are eager to squeeze more value from their money.
But financial experts warn that chasing returns without fully accounting for liquidity could prove be a costly miscalculation. In uncertain economic conditions, access to cash can matter just as much as headline yields. The real question, they argue, is whether sacrificing liquidity in pursuit of higher returns actually makes financial sense.
