Kenya’s dynamic investment landscape offers opportunities for individuals and institutions to grow wealth in a structured, efficient, and potentially high-yielding manner. Among these, the OAK Special Fund, managed by Faida Investment Bank, has emerged as a notable option. This fund leverages professional management, diversification, and strategic asset allocation to optimize returns for investors.
What is the OAK Special Fund?
The OAK Special Fund is a Leveraged Asset Allocation Fund domiciled in Kenya. It is specifically designed to maximize returns by dynamically allocating assets across multiple investment vehicles such as equities, fixed-income securities, and alternative assets. Managed by Faida Investment Bank, the fund takes a balanced approach by leveraging market opportunities while controlling risks.
Key Features of the OAK Special Fund
- Target Returns: The fund aims to achieve a 20% annual return net of fees, making it an attractive choice for high-yield-seeking investors.
- Leveraged Investments: The fund employs leverage, which amplifies returns by borrowing capital for investments, albeit with higher associated risks.
- Diversification: Investments are spread across various asset classes, reducing exposure to any single sector or risk factor.
- Active Management: The fund benefits from professional oversight by Faida Investment Bank’s expert financial managers.
How to Invest in the OAK Special Fund
Getting started with the OAK Special Fund is a straightforward process. Follow these steps:
1. Contact Faida Investment Bank
Initiate contact through their email oak@fib.co.ke or WhatsApp at (+254) 743 552 341. The bank will guide you through the requirements and offer preliminary information.
2. Understand the Investment Terms
Schedule a consultation with an investment advisor to understand the fund’s objectives, strategies, and associated risks. This step is crucial in determining whether the fund aligns with your financial goals.
3. Account Opening
Complete the necessary paperwork to open an investment account with Faida Investment Bank. You’ll need to provide identification documents, proof of income, and a completed application form.
4. Fund Your Investment Account
Deposit your desired investment amount. While the minimum investment threshold varies, Faida Investment Bank provides tailored guidance on this matter.
5. Monitor Your Investment
Once invested, keep track of your portfolio performance. Regular updates are provided by Faida Investment Bank to ensure you remain informed about the fund’s progress and any necessary adjustments.
Pros of Investing in the OAK Special Fund
The OAK Special Fund presents several advantages for investors:
1. High Return Potential
With a target of 20% annual returns, the fund stands out as one of the more lucrative options in the Kenyan investment market.
2. Professional Management
The fund benefits from Faida Investment Bank’s team of experienced professionals who actively manage the portfolio to achieve optimal performance.
3. Diversification
By investing in multiple asset classes, the fund mitigates risks associated with single-sector investments.
4. Market Accessibility
The fund provides access to otherwise inaccessible asset classes, offering exposure to both local and international opportunities.
5. Leverage Benefits
The use of leverage allows the fund to amplify gains, especially during favorable market conditions.
Cons of Investing in the OAK Special Fund
While the fund offers many benefits, it is not without its drawbacks:
1. High Risk
The use of leverage increases the potential for both gains and losses. Market volatility can significantly impact performance.
2. Liquidity Restrictions
Some funds have lock-in periods, limiting the ability to withdraw investments without penalties.
3. Fees and Costs
Management fees and other charges can reduce net returns, particularly in lower-performing years.
4. Complex Structure
The fund’s leveraged approach and diversified portfolio may be challenging for beginner investors to fully understand.
Interest Rates and Returns
The OAK Special Fund targets an annual return of 20% net of fees. While this is attractive compared to traditional savings accounts or fixed deposits, it’s essential to recognize that these returns are not guaranteed.
The fund’s actual performance depends on various factors, including market trends, investment strategies, and global economic conditions. Investors should prepare for fluctuations in returns, especially during periods of market instability.
Factors to Consider Before Investing
1. Risk Appetite
The fund’s leveraged nature makes it ideal for investors with a moderate to high risk tolerance. Assess whether you are comfortable with potential losses alongside the opportunity for high returns.
2. Financial Goals
Evaluate whether the fund’s objectives align with your short-term and long-term financial plans.
3. Investment Horizon
The OAK Special Fund is better suited for medium to long-term investors who can afford to ride out market fluctuations.
4. Due Diligence
Research thoroughly and seek advice from financial professionals to ensure the fund is a suitable choice for your portfolio.
The Role of Faida Investment Bank
Faida Investment Bank plays a pivotal role in the fund’s management, offering expertise in asset allocation, risk management, and performance optimization. Their team ensures that the fund’s strategies align with its target objectives while keeping investors informed.
The bank’s reputation and track record in Kenya’s financial markets add credibility and confidence for prospective investors.
Comparison with Other Investment Options in Kenya
1. Fixed Deposits
- Returns: Typically 6-8% annually.
- Risk: Low.
- Liquidity: Moderate.
2. Government Bonds
- Returns: Around 10-14% annually.
- Risk: Low.
- Liquidity: High.
3. Equities
- Returns: Variable.
- Risk: High.
- Liquidity: High.
4. OAK Special Fund
- Returns: Targeted at 20% annually.
- Risk: Moderate to High (due to leverage).
- Liquidity: Moderate.
Is the OAK Special Fund Right for You?
The OAK Special Fund is a robust option for investors in Kenya who are looking for high returns and are willing to accept moderate to high risks. Its diversified approach and professional management make it an attractive choice for those seeking to grow their wealth through strategic investments.
However, like any investment, it’s essential to align the fund’s characteristics with your financial goals, risk tolerance, and investment horizon. Thorough research and consultation with a financial advisor are key to making an informed decision.
Whether you’re a seasoned investor or exploring opportunities to diversify your portfolio, the OAK Special Fund offers a pathway to achieving financial growth in Kenya’s evolving market.
Also Read: Top 5 African Stock Markets in 2025
FAQs About the OAK Special Fund
What is the minimum investment required for the OAK Special Fund?
The minimum investment amount varies, and Faida Investment Bank provides tailored guidance based on investor needs.
Are the returns from the OAK Special Fund guaranteed?
No, the targeted annual return of 20% is not guaranteed and depends on market conditions and fund performance.
How do I withdraw from the OAK Special Fund?
Withdrawals may be subject to terms, including potential lock-in periods or exit fees. Contact Faida Investment Bank for specific withdrawal policies.
What is leverage, and how does it impact the OAK Special Fund?
Leverage involves borrowing capital to amplify investment gains. While it can boost returns, it also increases risk exposure.
Who manages the OAK Special Fund?
The fund is managed by Faida Investment Bank, a leading financial services provider in Kenya.
Is the OAK Special Fund suitable for beginners?
Due to its leveraged nature and associated risks, the fund is better suited for experienced investors or those with moderate to high-risk tolerance.
How does the OAK Special Fund compare to traditional savings accounts?
The fund offers higher potential returns (20% annually) but comes with higher risks compared to the low-risk, low-return nature of savings accounts.
Can I invest in the OAK Special Fund if I live outside Kenya?
Yes, the fund is open to both local and international investors. Consult Faida Investment Bank for specific requirements.
What happens if the fund underperforms?
Underperformance can result in lower returns or even losses. This is a risk inherent in all leveraged funds.
How are the fund’s assets diversified?
The fund invests in equities, fixed-income securities, and alternative assets to reduce risk and optimize returns.
