Bond Funds 101

Let’s take a closer look at one specific option: the Britam Bond Plus Fund.

Britam Asset Managers is a subsidiary of Britam Holdings PLC incorporated in? 2004 to fill a gap in quality Fund Management and Investment Advisory services to? individual and institutional investors. The Company is licensed as a Fund Manager by? Capital Markets Authority and Retirement Benefits Authority in Kenya and has grown? remarkably to become an influential player in the financial services sector. Britam Asset? Managers (Uganda) Ltd. was opened in 2017 in an effort to extend the company’s asset? management offering in the region.

The Britam Bond Plus Fund is a unit trust fund managed by Britam Asset Managers, and it offers a unique opportunity for investors to gain exposure to low-risk fixed-income securities, such as government treasury bonds and other high-quality bonds. Let’s break down why this particular bond fund might be a smart choice:

1. Low-Risk Investment

The Britam Bond Plus Fund focuses on government bonds and other fixed-income securities, which means it prioritizes safety over high returns. This makes it a great option for those who want to protect their capital while earning a steady return. If you’re looking for a conservative investment that offers stability, this fund is an excellent choice.

2. Accessibility

One of the standout features of the Britam Bond Plus Fund is its accessibility. You can start investing with just KES 1,000, making it ideal for beginners or anyone looking to start investing without a significant upfront commitment. The low minimum investment also allows you to test the waters before committing larger sums.

3. Flexibility and Liquidity

With no lock-in periods (except for the first 14 days of your initial investment), you can access your money when you need it. Additionally, the Britam Bond Plus Fund offers easy withdrawal options via M-Pesa or bank transfer, and you can access your funds within 48 working hours. This flexibility makes it a convenient choice for those who want to balance their long-term goals with the option for quick access to funds when necessary.

4. Transparent and Reliable Returns

The fund offers daily compounded interest, and returns are communicated regularly via email and published in the local media. You can monitor the performance of your investment and get up-to-date information on how your money is growing. Plus, the fund has low fees (a maximum of 2.5% per year), making it a cost-effective investment option.

5. Designed for Medium-Term Investment

The Britam Bond Plus Fund is ideally suited for medium-term investors, particularly those with a time horizon of 1 to 3 years. This aligns perfectly with individuals looking to save for a specific goal, such as funding a child’s education or buying a home, within a manageable timeframe.

How to Get Started with the Britam Bond Plus Fund

Getting started is easy. You can open an account through the Britam App, Customer Portal, or USSD *778#. Simply sign up using your National ID and KRA PIN, and you’ll be ready to start investing. You can even make your first investment via M-Pesa, ensuring a seamless and hassle-free process.

Bond funds like the Britam Bond Plus Fund offer a safe, low-risk way to invest in bonds without the hassle of managing individual bonds. Whether you're a beginner or an experienced investor, this fund offers the perfect blend of stability, liquidity, and professional management. If you're looking for a steady income with minimal risk, then the Britam Bond Plus Fund could be exactly what you're looking for.

Remember, investing is a long-term game. By diversifying your portfolio and including reliable options like bond funds, you can ensure your wealth grows steadily over time. So why not get started today and let your money work for you?