Olonseh:
Hi everyone, I just checked stanbic's rate for yesterday 2/4/2019 and it stated 13.04% but I was paid 12.14%. Is their an explanation for this? Who else has observed this disparity between rates stated and rates paid? I don't even know if this has been the practice or just a glitch as I've never bothered to check.

PS : My top was eventually credited yesterday but was not backdated to Friday even after confirmation from one of their reps that fund was received that same friday. I'm beginning to have second thoughts about stanbic, maybe it's time to try out other investment houses.

Stanbic and a lot of them do that abracadabra - the more you see, the less we pay. I can confirm that AXA Mansard pays rate stated on their website. @kendsage also confirmed that FBN do so too.

234ng44uk:

Stanbic and a lot of them do that abracadabra - the more you see, the less we pay. I can confirm that AXA Mansard pays rate stated on their website. @kendsage also confirmed that FBN do so too.

What of united capital do they also pay the actual promised rate, because am just planing to open account with them

Please I want someone that knows how united capital operate to put me through, though I have done some research but I need someone that have account with them already to give me an enlightenment

yemkaf:

What of united capital do they also pay the actual promised rate, because am just planing to open account with them

@mrhighsea @Kendsage @GonFreecss1 are with united capitals, they can answer that question.

I opened stanbic mmf and made transfer to the account in their bank since Monday but haven't got any details till today. Though I was told to expect my log in details until today.

What I want to ask is if their processes are usually this slow?

It's first time venturing into mmf and I had to moved my funds from first bank cos my colleague told me he's been using stanbic seamlessly.

234ng44uk:


@mrhighsea @Kendsage @GonFreecss1 are with united capitals, they can answer that question.

Confirmed for FBN only

234ng44uk:


Thanks for your response. Can you confirm their present rate? Do they have an app?

14.14% as at 29th of March. Yes, they have an app called FBNedge available on playstore. I check my MMF everyday by 3pm (no dulling oo and to avoid story I read on this platform) and can confirm that FBN pays exactly the rate published in its website. However, redemption might not be as fast as in AXA, investment one, Stanbic etc but that is not a concern for me. Higher interest rate and stability of it is key to me. For the past 45 days FBN rate has been over 14% consistently.

kendsage:


FBNQUest pays exactly the rate displayed on their website on a daily basis. NO MAGOMAGO

If you know... you know!

yemkaf:

What of united capital do they also pay the actual promised rate, because am just planing to open account with them

To be frank I am not so sure with United Capital, I didn't really monitor their actual daily rates, but I remembered comparing them with Stanbic and they had better rates.

yemkaf:
Please I want someone that knows how united capital operate to put me through, though I have done some research but I need someone that have account with them already to give me an enlightenment

What do you want to know?

kendsage:


14.14% as at 29th of March. Yes, they have an app called FBNedge available on playstore. I check my MMF everyday by 3pm (no dulling oo and to avoid story I read on this platform) and can confirm that FBN pays exactly the rate published in its website. However, redemption might not be as fast as in AXA, investment one, Stanbic etc but that is not a concern for me. Higher interest rate and stability of it is key to me. For the past 45 days FBN rate has been over 14% consistently.

FBN rate is 13.91% as at 2nd of April

yemkaf:

What of united capital do they also pay the actual promised rate, because am just planing to open account with them

As of today, with my calculation, United capital pd 751naira on 2m. That's like 13.68 if I get the calculation right.
I love United capital with the way they make it so easy to fund account to top up and thereafter place subscription. They send email notification every time. But recently like a week now its like they are doing one abracadabra with their daily interest payment. They don't stick to a specific time of the day when they credit their payment. Ystday they might do it in the morning as early as 7:30am, today they do it around 12pm, and another day they might not do it until 8pm. Sometimes they even do it in the night 12 or 1 am. So if one is not careful there might be days they might skip unnoticed.

eddyakinrinde:


As of today, with my calculation, United capital pd 751naira on 2m. That's like 13.68 if I get the calculation right.
I love United capital with the way they make it so easy to fund account to top up and thereafter place subscription. They send email notification every time. But recently like a week now its like they are doing one abracadabra with their daily interest payment. They don't stick to a specific time of the day when they credit their payment. Ystday they might do it in the morning as early as 7:30am, today they do it around 12pm, and another day they might not do it until 8pm. Sometimes they even do it in the night 12 or 1 am. So if one is not careful there might be days they might skip unnoticed.

This is quite true.

From my calculation, AXA posted rate is 12.76 but I got N2083 for a 6million investment. From my calculation, they are not paying what was posted on their site.

Stanbic is the worst. I have 5.550m with them and all I got was 1770. They are not even anywhere close to what they posted. Well I do not blame them, let treasury bill rate rise and I will quietly move my fund, rubbish.

Pls i want to know the advantages of mutual fund over Tbills. Thanks. A newbie question

Experience4u:
Pls i want to know the advantages of mutual fund over Tbills. Thanks. A newbie question

T-bills, are Govt short-term borrowing instruments.. therefore it carry no repayment risk and are safer than mutual funds.

Strangers101:


T-bills, are Govt short-term borrowing instruments.. therefore it carry no repayment risk and are safer than mutual funds.

How is TB safer than mutual fund. Explain

Yem0350:

I guess delay was due to the end of the quarter. By tomorrow, you should get your fund.
However, what mode of redemption did you used?

I applied for redemption on the app... I got credited around 7pm tonight.

I love FBN because of their high rate and sincerity with their interest but their redemption is not encouraging....

If you need your money just be rest assured you will get it two days after the application for redemption

needful:


How is TB safer than a mutual fund. Explain

When you classify an item to be safe, most likely it is protected from or not exposed to danger or its exposure to risk is minimal; thus if my definition of safe connotes with yours, then you will agree with me that TB is safer than mutual fund after reading this.

Treasury Bills
Treasury bills are short-term borrowing instruments that are issued by Govt. In other words, they represent the borrowing obligation of the government. A Treasury bill has an expiration date ranging from one day to half a year or full year. TB is usually issued in line with monetary policy as determined by CBN.

On the expiration date you, or your broker on your behalf, will return the Treasury bill and get your money back from the Govt. Should you need access to cash, you can sell the bill to other investors before the expiration date. The risk of the FG failing to honour its payment obligation is essentially zero since the federal government can always print money to pay its debt except only when Nig lose its sovereignty. Treasury bills, therefore, carry no repayment risk. Govt is a continuum.

Mutual Funds
A mutual fund is a pool of money, managed by professional investors on behalf of other people. They are ideal for investors who do not have the time or expertise to follow individual stocks or bonds. To compensate the professionals managing your money, you pay a particular percentage fee. Some funds also charge a fee every time you withdraw money from your fund just to discourage frequent withdrawals.

Since mutual funds hold a large number of financial assets, even as a small participant in the fund, you get the benefit of DIVERSIFICATION. While it may not be practical to buy dozens of stocks with just N5,000, but such a contribution to a mutual fund results in a diversified portfolio that won't suffer greatly from the failure of any one company that the money had been invested.

Mutual funds vary greatly in terms of risk. What the mutual fund professionals will purchase with the money you entrusted them with is detailed in the official document called the prospectus. Except for a few very risky financial instruments, which mutual funds cannot purchase by law, a mutual fund can hold practically any financial asset, as long as such assets are spelt out in its prospectus, and as you know, different financial assets have different risk element.

Your fund managers might decide to invest in a medium quality company just because they paid quick returns, however, it is a risky venture. The only solutions are for you to read carefully the prospectus of your mutual fund before investing in it.

Risk vs. Return
In finance, risk and return go hand in hand. Since Treasury bills are essentially the safest asset you can buy, they also tend to provide the lowest return. In general, the return from a Treasury bill is only marginally above inflation. As such, a Treasury bill is more suitable for investors who desire to preserve what they have, as opposed to growing their money.

A mutual fund is more likely to grow your investment at a rate far exceeding inflation. However, mutual funds can also lose value.

SOLUTION
Having known the two concepts, I would rather advise you that instead of picking either mutual funds or Treasury bills absolutely with all your investable assets, a mix of both may be a good choice and could help you find the ideal compromise between risk and return.

needful:


How is TB safer than mutual fund. Explain

When people always say that nonsense, I just laugh.

Hahahahahahahahahaha

emmas2k570:


I applied for redemption on the app... I got credited around 7pm tonight.

I love FBN because of their high rate and sincerity with their interest but their redemption is not encouraging....

If you need your money just be rest assured you will get it two days after the application for redemption

It's already in their terms and conditions that it's 3-5 working days. So no need complaining. If you want something faster, you can always use Axa Mansard, Stanbic or United Capital.

Strangers101:


A mutual fund is more likely to grow your investment at a rate far exceeding inflation. However, mutual funds can also lose value.

SOLUTION
Having known the two concepts, I would rather advise you that instead of picking either mutual funds or Treasury bills absolutely with all your investable assets, a mix of both may be a good choice and could help you find the ideal compromise between risk and return.

No need for this long story, you actually missed the point. You should know the Mutual fund we are talking about is the low risk one called Money market fund.

Saying Money market fund is more risky than Treasury bills is like saying Equity mutual funds is more risky than buying Equities.

GonFreecss1:


No need for this long story, you actually missed the point. You should know the Mutual fund we are talking about is the low risk one called Money market fund.

Saying Money market fund is more risky than Treasury bills is like saying Equity mutual funds is more risky than buying Equities.

So....Do justice by adding the points that I have missed to it.�����

I haven't seen any in what you wrote

needful:
From my calculation, AXA posted rate is 12.76 but I got N2083 for a 6million investment. From my calculation, they are not paying what was posted on their site.

You got 12.67% against 12.76% that's surprising. I got 12.7586% on 2nd April (1305.77 on 1st April minus 1235.86 on 2nd April for 200,000 Naira investment). Which is exactly what they stated in their website. I have a spreadsheet I keep amount paid, their interest rate and my rate I get. It's been accurate so far.
Note that the payment on your account is actually for the previous day. No mmf pay you for that day. The payment you'll get today 4th April is for 3rd April.

needful:
Stanbic is the worst. I have 5.550m with them and all I got was 1770. They are not even anywhere close to what they posted. Well I do not blame them, let treasury bill rate rise and I will quietly move my fund, rubbish.

11.74 and they've never stated anything less than 13% on their website. Why can't they just state 11.74%?
Bulk of my money is with ARM, they scoop off about 1% everyday paying 12.8% but state 13.7% on their website. Still better than Stanbic.

234ng44uk:


11.74 and they've never stated anything less than 13% on their website. Why can't they just state 11.74%?
Bulk of my money is with ARM, they scoop off about 1% everyday paying 12.8% but state 13.7% on their website. Still better than Stanbic.

Am tired of all of them. Axa did not add my interest yesterday. I just sent them a mail

The truth is, all this mmf companies has one problem or the other. One need to monitor them very well. Axamansard didn't add my interest payment yesterday for reasons I did not know. I have sent them a mail, let me see what happens. I just started monitoring it from this week. So what am understanding now is, they have been skipping some days without my intention. As for stanbic, they are crook. Pls between United capital and FBNedge, which one is better.

needful:


Am tired of all of them. Axa did not add my interest yesterday. I just sent them a mail

They've not added my interest today (interest for yesterday 3rd April). I'm still looking at them with corner eye.

Pls house, I want to redeem my investment with Investment one? Pls whoever has done so should guide me through about the procedure.