What is Safaricom Mali and should you invest in it?

Everyone is always talking about 'passive income' - your money making money for you while you are busy with other things.

Savings is one option. Investing is another.

Traditionally, investing starts at hundreds of thousands of shillings. Safaricom's Mali is making investing more achievable for people on smaller budgets.

Investing is one of the ways to have your money make some money. But it comes with a lot of risk.

By understanding what different investment options have to offer, unaweza make informed decisions about doo yako, and enjoy the power to make your own choices about your finances.

Mali is an investment product launched in 2019 by Safaricom in partnership with Genghis Capital.

Genghis Capital is licensed by both the Capital Markets Authority and the Retirement Benefits Authority.

The company originally began as a stock brokerage firm in the year 2008 and offers a wide range of financial solutions.

Mali opens up investment to young people by allowing M-PESA users to invest as low as 100 bob and earn interest daily.

Benefit ya Mali is that it is accessible to everyone, especially mayouth hawana ganji mingi ya kuinvest.

Mali works by allowing M-PESA users to transfer money into a unit trust fund managed by Genghis Capital.

A unit trust ni account iko na doo ya everyone mwenye ameshow interest ya kuinvest. This money is then invested in revenue-generating assets kama stocks, bonds, and real estate.

The money is managed by a fund manager who invests the money on your behalf and the income is divided according to investment amounts.

Some people believe that experts are better at investing kuliko wasee odinare. However, every investment is always a risk na unaweza poteza pesa.

The minimum investment amount is 100 bob, and the maximum investment amount is Sh300,000

Hakuna transaction charges when moving money to and from Mali, but the maximum you can transact in a day is Sh150,000.

Mali offers an interest of up to 10% annually, which is compounded, which means interest yenye umearn inendelea kuearn more interest on top.

However, kama investments zote, ni muhimu sana kuchambua terms and conditions.

Because it is an income generating platform, kuna taxes unalipa kwa gava and fees za kulipa fund manager mwenye amekuhelp kugrow hiyo doo.

The government imposes a 15% withholding tax on the money invested but not on your interest.

Genghis Capital charges a fund manager fee of 2.0% per year, while KCB Bank, which acts as the trustee, charges a fee of 0.20% per annum.

Finally, the custodial fee will be charged at 0.15% per annum.

It's important to keep these fees in mind when investing in a unit trust fund, as they can eat into your returns over time.

Mali ni investment option fiti kwa vijana wanatafuta a stable passive way to grow their money ama kuinvest doo for a specific goal.

Because of the interest rates, investing money using Mali can help you accomplish your goals faster.

Advantage ingine ni unaweza access doo yako haraka if you need it. The process of withdrawing money from Mali to your M-PESA is very easy. However kukiwa na delays ama technical issues Safaricom hushow customers.

This makes them an good option for individuals who need quick access to their money or who may need to make a large purchase in the near future.

But remember, this is investing, which means that it can also sometimes be unpredictable. Make sure that you’re only investing money that you don’t urgently need, or would like to use for a big purchase.

Because the investments are done by a professional manager, it reduces the chances of losing your money.

The fees na taxes zinaweza kula investment yako over a long period of time.

Like all investments, it is possible to lose money if the assets your money was invested in lose value.

Unike a savings account, where your deposited money is safe, an investment account means your deposited money can lose value, and you can even lose all of it.

Sometimes it may not be easy to withdraw your money quickly if you need it, especially kama kuna technical hitches ama if you need the money quicker that the 72-hour wait period.

As we noted at the beginning of the article, Mali is a form of a unit trust. A unit trust ni kama account iko na doo ya everyone mwenye anadai kuinvest.

This money is then invested in revenue-generating assets kama stocks, bonds, and real estate

The money is managed by a fund manager who invests the money on your behalf

The earlier you start investing, the more time you have for your investments to grow. Ata doo kidogo inaweza grow sana ukianza mapema.

Assuming interest rates in Mali zibaki the same, Safaricom claims that by investing Sh200 daily for 10 years unaweza pata Sh1.8 million.

Kama ulikuwa na miaka mbao when you started, after 10 years you can use the money to start a big business or buy land, if the market works well in your favour.

Kabla ya kuinvest, ni important kuwa na a clear idea of what you want to achieve.

Are you investing for retirement, a down payment on an item, or a future education? Itakusaidia kujua how much to invest and where to invest your money.

Investing is just one part of personal finance. Unafaa kuendelea kujichanua na mambo ya budgeting, saving, and managing debt.

Ukiwa na hii knowledge, you can make better decisions about your investments and set yourself up for long-term financial success.

Investing is a long-term game. Lazima ukuwe na consistency ya kusave na discipline ya kuwach hiyo doo iendelee kugrow.

Jitume ndio upate more money to invest to prevent you from withdrawing the funds prematurely.

Now that you have this information on investing with Safaricom Mali, you are better placed to understand whether this is a good option for you.