The increasing interest in Exchange Traded Funds (ETFs) and Money Market Funds (MMFs) among Kenyans reflects a significant shift towards more diverse investment strategies, driven by enhanced financial literacy. According to findings by Standard Chartered, Kenyans are increasingly seeking opportunities beyond local markets, with MMFs appealing to conservative investors due to their low-risk nature and liquidity. These funds, which primarily invest in short-term instruments like treasury bills, offer higher returns than traditional savings accounts.
ETFs, on the other hand, are attracting investors who want exposure to both local and global markets, with their flexibility and lower costs making them particularly appealing. Standard Chartered has responded to this growing demand by launching new products such as US Corporate Bonds, USD Government Bonds, and their own curated Signature CIO Funds, expanding their portfolio to include ESG funds and USD-denominated MMFs.
The bank’s focus on enhancing financial literacy and utilizing its digital infrastructure has allowed it to democratize access to these global investment opportunities, empowering investors to buy, track, and sell a range of financial products through their platforms.
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Research shows that foreign currency assets, such as US Treasuries and FCY/MMFs, are becoming increasingly popular among Kenyan investors eager to diversify their portfolios.
“Our investment offerings are built on a structured advisory framework that provides comprehensive research, ensuring that our clients are well-equipped to make sound financial decisions,” Chumba added.
