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FIXED DEPOSIT TERMS
Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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mukiha wrote:Impunity wrote:mukiha wrote:In view of above and the fact that many UTs have 10k minimum investment, I still can't understand why people keep savings in fixed deposits! What %age will CIC pay for a deposit of say 100K for one month? Unit trusts returns are NOT based on the value of investment. Everybody gets the same percentage - whether you put in 10k or 10m! Secondly, the rates are evaluated on a daily basis. If today's return is 9%pa, everybody gets 9% p.a. (of course that means you divide the 9% by 365!!); if tomorrow it is 8%, everybody gets 8%. The rates are NOT negotiated with the investor before investment. You get what the fund earns on a day-to-day basis. To answer your question: Check the Daily Nation, for example, on the page that has stocks and forex tables - top right hand corner. CIC's yesterday's rate was 9.01% p.a.... but Britam was higher at 9.74% p.a. Actually, I am now considering moving the money to Britam.... Amana PAID 11.16% p.a. yesterday And you said that the %age is net profit, the 15% tax is already deducted? Please confirm. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Impunity wrote:mukiha wrote:Impunity wrote:mukiha wrote:In view of above and the fact that many UTs have 10k minimum investment, I still can't understand why people keep savings in fixed deposits! What %age will CIC pay for a deposit of say 100K for one month? Unit trusts returns are NOT based on the value of investment. Everybody gets the same percentage - whether you put in 10k or 10m! Secondly, the rates are evaluated on a daily basis. If today's return is 9%pa, everybody gets 9% p.a. (of course that means you divide the 9% by 365!!); if tomorrow it is 8%, everybody gets 8%. The rates are NOT negotiated with the investor before investment. You get what the fund earns on a day-to-day basis. To answer your question: Check the Daily Nation, for example, on the page that has stocks and forex tables - top right hand corner. CIC's yesterday's rate was 9.01% p.a.... but Britam was higher at 9.74% p.a. Actually, I am now considering moving the money to Britam.... Amana PAID 11.16% p.a. yesterday And you said that the %age is net profit, the 15% tax is already deducted? Please confirm. Yes it is net; that's what they paid to my account.... give them a call for clarifications Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 5/1/2010 Posts: 3,024 Location: Hapa
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MMFs for now Float like a butterfly, sting like a bee. - Muhammad Aliπ
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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mukiha wrote:Impunity wrote:mukiha wrote:Impunity wrote:mukiha wrote:In view of above and the fact that many UTs have 10k minimum investment, I still can't understand why people keep savings in fixed deposits! What %age will CIC pay for a deposit of say 100K for one month? Unit trusts returns are NOT based on the value of investment. Everybody gets the same percentage - whether you put in 10k or 10m! Secondly, the rates are evaluated on a daily basis. If today's return is 9%pa, everybody gets 9% p.a. (of course that means you divide the 9% by 365!!); if tomorrow it is 8%, everybody gets 8%. The rates are NOT negotiated with the investor before investment. You get what the fund earns on a day-to-day basis. To answer your question: Check the Daily Nation, for example, on the page that has stocks and forex tables - top right hand corner. CIC's yesterday's rate was 9.01% p.a.... but Britam was higher at 9.74% p.a. Actually, I am now considering moving the money to Britam.... Amana PAID 11.16% p.a. yesterday And you said that the %age is net profit, the 15% tax is already deducted? Please confirm. Yes it is net; that's what they paid to my account.... give them a call for clarifications Ok, they seem to yield more than a T Bill for the the same tenuere currently. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 2/15/2010 Posts: 167 Location: Kenya
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Is it possible to transfer ownership of a unit trust account to another person?
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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DtheK wrote:Is it possible to transfer ownership of a unit trust account to another person? The funds or the account? Can you transfer your bank account to some one else? NO But you can transfer the funds! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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For Britam I came across an old document with the following conditions for a Money Market Fund investment:
Initial fees β 0
β’ Annual management fee β 2% p.a.
β’ Minimum investment amount β Ksh.100,000
β’ Minimum top β up amount β Ksh.10,000
β’ Initial Commission β 0.05% of investment amount + 0.025% monthly trailer
If this is still the case ,then CIC should be better because they only charge Ksh 1,000 joining fee and minimum investment is Kshs 10,000 i.e even if the rate for Britam is higher,this gets eaten into by the above charges...
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Rank: Member Joined: 2/15/2010 Posts: 167 Location: Kenya
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@Mukiha but then again a unit trust serves different purpose from a bank account.
A bank account is mostly not for investing but allows you to access services such as recieving and making payments thru different means.
A unit trust however is an investment in the same class as shares,T-bills and bonds.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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DtheK wrote:@Mukiha but then again a unit trust serves different purpose from a bank account.
A bank account is mostly not for investing but allows you to access services such as recieving and making payments thru different means.
A unit trust however is an investment in the same class as shares,T-bills and bonds. Can you transfer your CDSC account to another person? NO! But you can transfers the shares held therin. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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