By Alfred
Zacharia
Dar es
Salaam. The Faida Fund saw its profits soar as its value jumped to TZS 25.6
billion by June 2024, up from TZS 15.6 billion recorded a year ago.
Speaking
during a first Annual General Meeting on Saturday (August 10) the chief executive officer of Watumishi Housing Investment (WHI), the fund manager of Faida Fund Dr. Fred Msemwa said the growth is due to good investment
returns, better technology in transactions, and more people trusting and
joining the fund.
The Faida
Fund, launched in November 2022 under Watumishi Housing Investment (WHI)
management, is designed for both institutions and individuals looking to invest
for short, medium, or long-term gains. The minimum initial investment is TZS
10,000, with additional investments of at least TZS 5,000. There is no upper
limit, and investors can withdraw their money after 90 days, with payments made
within three working days.
"We
are thrilled with this growth. Our strategy and use of technology have helped
us attract more investors and grow the fund's value by 41 percent," Dr.
Msemwa told the shareholders.
The number
of investors rose from 2,041 in June 2023 to 4,806 by June 2024, a 58 percent
increase.
"Educating
people about mutual funds has been key to this success," he explained.
By June
30, 2023, the fund's value was TZS 15.55 billion, and each unit was worth TZS
104.9707, up from TZS 100.0000 at the start of the year. By June 30, 2024, the
fund's value reached TZS 25.96 billion, and the unit value increased to TZS
115.8120.
"Our
strategy followed the Faida Fund's policy closely," said the Fund Manager.
"We invested wisely to maximize returns while keeping the fund
liquid."
Faida Fund’s Board Chairman Mr. Abdul-Razaq Badru said the fund mainly invested in long-term bonds, with the government bonds take lion share of 90 percent and 1 percent in corporate bonds. It also placed 3 percent in fixed-term bank deposits and 6 percent in short-term bank deposits.
"These
short-term deposits helped us meet the fund's operational needs, like
processing investor withdrawals," Mr. Badru added.
“Investor
returns were strong, beating expectations,” he explained, saying that for the
eight months ending June 20, 2023, the return was 10.0 percent, rising to 12
percent by June 30, 2024, which was upper than the 9.7 percent benchmark set by
the 5-Year Government Bond.
"The
Faida Fund offers more than just good returns. It's flexible—investors can sell
their units after 90 days with no fees, and even use their units as collateral
for bank loans," he said.
The Faida
Fund provides a great balance of high returns and flexibility, making it a
smart choice for today's investors.
