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ARE YOU LOOKING FOR A STABLE INVESTMENT???
Are you an avid investor?
Are you looking for a stable investment which will earn you handsome returns over time?
Well look no further, we have just what you need, the Old Mutual Bond Fund.
Now some of you may be wondering, bond… ? Just to ensure we are on the same page I will back track and give you a few basics.
A bond is a loan to a company, government or a local authority. Generally, interest is paid to the lender and the amount of the loan repaid at the end of the term (usually varying from 1 year to 20 years-the longest bond in the Kenyan market).
Bond funds are pooled investments investing in a range of bonds (including corporate and government bonds) with different interest rates and different maturity dates. This reduces the risk to capital. But because of the mix of investments, bond funds can't promise a fixed return; instead they aim for a 'target return'.
Now back to our key focus….. the Old Mutual Bond Fund. This fund offers a dynamically blended portfolio of fixed-income securities issued by the Kenyan government and corporations with some offshore element. The fund aims to achieve the best total returns possible from a well diversified portfolio invested in a whole range of bonds.
As with all our products, the Old Mutual Bond Fund comes with a raft of benefits, these include;
Professionalism
This basket of bonds is assembled by our financial experts to ensure that the final product has minimum risk and maximum returns. Our Fund managers have the required skills to build a competitive bond fund which may be unavailable to most individual investors.
Diversification
The Bond fund allows you to spread your risk by investing in many individual bonds which ensures the performance of one individual bond does not significantly negatively impact the performance of the bond fund. A bond fund is ideal if you have small amounts to invest, since you can spread your money across a wide range of bond investments.
Higher savings
The interest rates on bonds are usually greater than the rates paid by banks on savings accounts, if you therefore want to earn from your savings, try a bond-fund. This means that if you are saving and you don't need your money in the short term, the old mutual bond fund will give you a greater return without posing too much risk.
Continuous growth of returns
In the bond fund, income from all the bonds can be reinvested automatically and added to the value of the fund. Furthermore, bond funds tend to pay periodic interest which includes the interest payments on the fund's underlying securities.
Flexibility
Though the recommended investment period for the bond fund is more than 2 years you can withdraw at any time at the prevailing unit price. With the bond fund you will not have to worry about getting a buyer for your bond or awaiting maturity dates as would be the case if you invested into individual bonds.
Flexi payments
Old Mutual allows you to top up your account at any point in time through our “easy pay” options ; M-pesa, postapay, check-off, cheque or direct debit according to your preference.
Regular account statements
You can keep track of your bond fund investment since the funds value is assessed daily. To know the value of you investment at any point in time you can check your account value by logging into our website or through sms. Or through the free monthly statements that are forwarded to your email account. In addition you can check the daily unit price in the local dailies or through our website.
Free financial advise
Our Old Mutual Financial Advisors are available to offer you free financial advise. They will assist you to develop your individual financial goals and help you plan for your future.
In case you’re wondering what all this is leading to … here comes the punch line…
The Old Mutual Bond Fund is a safe and conservative investment. It provides a reliable stream of income and serves as a great investment vehicle for saving when you don't want to put your money at risk.
We extend this invitation to you, to come and participate in this stable and secure path to success. |
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