1. What is Etica Money Market Fund?

The Etica Money Market Fund (MMF) is a Shariah-compliant investment product in Kenya that provides competitive returns while maintaining high liquidity and capital preservation.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( Principal \) — Initial investment amount in KES
• \( Rate \) — Annual interest rate in decimal (e.g., 0.08 for 8%)
• \( Time \) — Investment period in years

Explanation: The formula calculates monthly compounding returns on your investment over time.

3. Importance of MMF Calculation

Details: Calculating potential returns helps investors make informed decisions about their investments and compare different financial products.

4. Using the Calculator

Tips: Enter principal in KES, annual rate as decimal (e.g., 0.1 for 10%), and time in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often does Etica MMF compound interest?
A: The fund compounds interest monthly, which is reflected in the calculation.

Q2: Are there any fees deducted from the investment?
A: This calculator shows gross returns. Actual returns may be affected by management fees and other charges.

Q3: Is the principal amount guaranteed?
A: While MMFs aim to preserve capital, they are not guaranteed and carry some risk.

Q4: How does this compare to bank savings accounts?
A: MMFs typically offer higher returns than regular savings accounts but may have different liquidity terms.

Q5: Can I withdraw my money anytime?
A: While MMFs are liquid, check with Etica for specific withdrawal terms and processing times.