Money Market Fund
Fund typeA pool of cash-like investments. Pays interest, low risk, easy to access.
Worked example
Put KES 10,000 in a MMF and it might earn KES ~85 in a month at ~10% p.a.
YieldUnit Trust
Glossary
The words that get in the way, explained simply.
Bond Plus Fund
Fund typeA fund that lends to the government and large companies in return for interest.
Worked example
KES 50,000 could earn ~KES 500/month, with occasional small swings.
YieldNAV
Balanced Fund
Fund typeA mix of shares and bonds so growth and safety live in the same pot.
Worked example
60% bonds + 40% shares means you grow faster than cash but calmer than pure equities.
DiversificationRisk Profile
Unit Trust
StructureA shared pool where many investors buy 'units' and a manager invests on their behalf.
Worked example
You buy KES 5,000 of units today; tomorrow the price per unit may nudge up or down.
NAV
Yield
ReturnThe income a fund pays you, shown as a percentage per year.
Worked example
A 10% yield on KES 20,000 = about KES 2,000 over a year.
NAV
Risk Profile
YouHow much bumpiness you're okay with on the way to your goal.
Worked example
A cautious profile leans on MMFs; a bold profile leans on equities.
Diversification
Diversification
StrategyNot putting all your money in one place, so one bad patch doesn't sink you.
Worked example
Splitting KES 100,000 across MMF, bonds and shares smooths the ride.
Balanced Fund
Compounding
GrowthEarning returns on your returns, so growth speeds up over time.
Worked example
KES 10,000 at 10% grows to ~KES 25,900 in 10 years — most of that is compounding.
Yield
NAV
PricingNet Asset Value — the price of one unit of a fund on a given day.
Worked example
If NAV is KES 20 and you invest KES 1,000, you buy 50 units.
Unit Trust
Standing Order
HabitA repeating instruction to move money from your bank to your fund on a set day.
Worked example
KES 5,000 on the 1st of every month — it happens whether you remember or not.