Invest while you save! SC Shilingi funds help you to invest your daily, weekly, or monthly savings in short-term money market funds that give an attractive rate of return, Standard Chartered Bank says, but many people don’t really know what this SC Shilingi Funds is;
SC Shilingi Funds is one of the investment products by Standard Chartered Bank Kenya. Precisely, it is a Unit Trust Investment.
A unit trust is a form of investment fund that pools together funds from multiple investors into a single fund managed by one fund manager with an aim to achieve a specific return within a given duration of time.
These unit trusts make money by investing in well-performing assets such as treasury bills, government bonds, corporate bonds, and shares, among many other different asset classes – for example, the money market funds – to spread and reduce the risk.
Unit investment trusts buy a fixed portfolio of securities and allow investors to redeem their “units,” similar to a mutual fund, Investopedia outlines.
How does SC Shilingi Funds work in Kenya?
As stated, because unit trusts, of which SC Shilingi Funds is one, provide access to a wider range of investments, the diversification makes it a low-risk option for investors who want a reliable and consistent income stream with a potential increase in returns over time.
In Kenya, the SC Shilingi Funds is available only to Standard Chartered Bank customers because to start investing, one needs to be logged in to the lender’s mobile application called SC Mobile Kenya App, which enables the buying and selling of units.
“No paperwork required as it is done directly from your SC Mobile App,” the bank says.
So, to start off, assuming you have opened an account with Standard Chartered Bank, follow these steps to start investing in SC Shilingi Funds now;
1. Download the SC Mobile Kenya App from PlayStore or Apple Store
2. Open the app and enter your details to log in
3. Click on the Investments tab
4. Choose SC Shilingi Funds
5. Start investing
How much do you need to invest in SC Shilingi Funds?
Standard Chartered Bank Kenya requires the first purchase of its unit trusts at SC Shilingi Funds to be at least Ksh500. But thereafter, the size of increments or additional investments is at the individual investor’s discretion.
SC Shilingi Funds has zero upfront charges for investments and withdrawals, which can be done anytime.
However, at the end of every maturity period, the investor is charged fund management fees that are normally below 2%.
Remember to ask for all fees and commissions in writing.
What is the interest rate of SC Shilingi Funds? (2024)
Unit trusts are usually made up of income shares distributed to investors either as interest or dividends monthly, quarterly, bi-annually or annually when they make income declarations, and SC Shilingi Funds is no exception;
Currently, SC Shilingi Funds pays returns at a 14% annual yield or 14.93% effective annual rate such that if you invest, for instance, Ksh100,000 as the initial and final investment amount, you will get exactly Ksh114,934.20 at the end of one year.
If you want to achieve returns that are better than inflation and are comfortable with lower potential returns during the period of investment in SC Shilingi Funds, you can risk locking your cash for two years or more for maximum capital appreciation.
Read: All Absa Money Market Fund Details in Kenya (2024)
