• Contact Us
  • About Us
  • Advertisement
  • Privacy & Policy
Friday, July 11, 2025
SUBSCRIBE
The Brief | Namibia's Leading Business & Financial News
26 °c
Windhoek
22 ° Wed
25 ° Thu
  • Home
  • Companies
    • Finance
    • Agriculture
    • Technology
    • Property
    • Trade
    • Tourism
  • Business & Economy
  • Mining & Energy
  • Opinions
    • Analysis
    • Columnists
  • Africa
  • e-edition
No Result
View All Result
The Brief | Namibia's Leading Business & Financial News
  • Home
  • Companies
    • Finance
    • Agriculture
    • Technology
    • Property
    • Trade
    • Tourism
  • Business & Economy
  • Mining & Energy
  • Opinions
    • Analysis
    • Columnists
  • Africa
  • e-edition
No Result
View All Result
The Brief | Namibia's Leading Business & Financial News
Subscribe
No Result
View All Result
TB image banner 750x140
Home Opinions

Navigating inflation and interest rates: A Money Market Fund perspective

by editor
November 18, 2024
in Opinions
7
A A
203
SHARES
3.4k
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

By Nasha Schiceya

You might also like

When micromanagement replaces leadership

Missional clarity: The why behind the seat

Namibia’s reclassification: A strategic opportunity for inclusive development

Imagine you are planning a family vacation. You budget carefully, but over time, you notice that prices for flights, hotels, and even food keep rising. This is inflation at work—it means your money buys less than it used to. The same happens in the world of savings and investments.

Let’s say you diligently put a part of your income aside every month. You are proud to see your money grow, only to find that the price of your grocery basket or the house or car you dreamed about, increased too.

Why is understanding inflation and interest rates important?

Understanding how inflation impacts your savings, and how it interacts with the level of interest rates, can help you make smarter financial decisions and protect your savings from losing value. You want your savings to grow more than the rate that prices increase. Inflation is the gradual increase in the prices of goods and services over time.

There are several key reasons for this phenomenon. First, as economies grow, demand for goods and services often outpaces supply, leading to higher prices. Second, costs for businesses, such as wages and raw materials, can rise, prompting companies to pass these increased expenses onto consumers. Inflation can also be driven by external factors like supply chain disruptions or geopolitical events that affect the availability of goods. Together, these dynamics contribute to the continuous rise in prices that we experience over time.

One of the key roles of central banks, like the Bank of Namibia, is to control inflation by adjusting the level of interest rates. When inflation is high, central banks increase interest rates to slow down the demand for goods and services, which then slows down spending and make borrowing money (to spend) more expensive. Conversely, to encourage borrowing and

spending during a time when economic growth and inflation is low, central banks can lower interest rates to boost the economy again.

How can a Money Market Fund help you to grow and protect your savings

Now, let’s talk about a practical way to grow and protect your savings: investing in a money market unit trust fund, such as the Sisedi Money Market Fund. The main goal of money market funds is to offer a higher-level income than bank deposits and money on call. These funds offer a balance of stability, liquidity, and competitive real returns, making them a good option during uncertain economic times.

Money market funds invest in a basket of short-term, low-risk, high-quality financial assets. You can easily access your money when you need it, unlike some long-term fixed investments. Experienced fund managers actively monitor market conditions and spread the investments across various instruments to optimize returns and reduce risk.

For example, in a rising interest rate environment, money market funds quickly adjust to offer better returns than traditional fixed savings accounts. The converse is true, but here’s what’s really important to make an informed decision: choose a way of saving that consistently delivers a return higher than the inflation rate.

Money market funds offer numerous benefits and are part of your broader investment strategy. They provide a valuable tool for short-term financial goals or as a temporary parking spot for your money but may not be suitable for all long-term investment objectives or saving for retirement.

Remember, it is always wise to consult with an independent financial advisor to ensure your investment choices align with your personal financial goals and risk tolerance.

With the right strategy, tools and understanding how inflation and interest rates affect your investments, you can confidently navigate the ever-changing economic landscape and grow and protect the value of your savings.

*Nasha Schiceya is a Junior Investment Analyst at Sisedi Investment Group

author avatar
editor
See Full Bio
Tags: economyfinanceinflationinterest ratesnamibiaNasha SchiceyaNavigating inflation and interest rates: A Money Market Fund perspectiveSisedi Investment Group
Share81Tweet51Share14
Previous Post

BUCO sees largest year-on-year basket drop in November

Next Post

CRAN’s new spectrum plan to fuel 5G, AI advancements

Recommended For You

When micromanagement replaces leadership

by reporter
July 11, 2025
0
Why Humility Is the New Competitive Advantage in Leadership

By Junias Erasmus In many modern workplaces, a quiet contradiction festers beneath the surface of productivity: employees are micromanaged down to their bathroom breaks and personal phone calls,...

Read moreDetails

Missional clarity: The why behind the seat

by reporter
July 11, 2025
0
To be my President’s keeper

By Hilda Basson Namundjebo I recently spoke at a women’s training event on Intersectionality in the boardroom. A subset of my talk dealt with missional clarity which addresses...

Read moreDetails

Namibia’s reclassification: A strategic opportunity for inclusive development

by reporter
July 11, 2025
0
Namibia’s reclassification: A strategic opportunity for inclusive development

By Cons Karamata Namibia’s recent reclassification by the World Bank from an upper-middle-income country to a lower-middle-income country should be received not as a setback, but as a...

Read moreDetails

Namibia’s economic downgrade: A setback or a strategic opportunity?

by reporter
July 10, 2025
0
Namibia’s economic downgrade: A setback or a strategic opportunity?

By Saima Nangombe In July 2025, the World Bank classified Namibia as a lower-middle-income country, when it was previously categorized as an upper-middle-income country. This change occurred after...

Read moreDetails

Namibia’s bold leap toward a digitally empowered payment future

by reporter
July 10, 2025
0
Namibia’s bold leap toward a digitally empowered payment future

By Fernando Piu Paulus Despite its relatively small population and economy compared to the rest of Africa and the global stage, Namibia is fast emerging as a frontrunner...

Read moreDetails
Next Post
CRAN’s new spectrum plan to fuel 5G, AI advancements

CRAN’s new spectrum plan to fuel 5G, AI advancements

Related News

Laramon Tours and Catamaran Charter merge operations

Laramon Tours and Catamaran Charter merge operations

March 7, 2023
Leading with confidence as a young professional

Leading with confidence as a young professional

June 12, 2025
MTC faces N$8.1m monthly revenue loss from 323k disconnected subscribers

MTC faces N$8.1m monthly revenue loss from 323k disconnected subscribers

April 3, 2024

Browse by Category

  • Africa
  • Agriculture
  • Analysis
  • Business & Economy
  • Columnists
  • Companies
  • Finance
  • Finance
  • Fisheries
  • Green Hydrogen
  • Health
  • Investing
  • Latest
  • Market
  • Mining & Energy
  • Namibia
  • namibia
  • News
  • Opinions
  • Property
  • Retail
  • Technology
  • Tourism
  • Trade
The Brief | Namibia's Leading Business & Financial News

The Brief is Namibia's leading daily business, finance and economic news publication.

CATEGORIES

  • Business & Economy
  • Companies
    • Agriculture
    • Finance
    • Fisheries
    • Health
    • Property
    • Retail
    • Technology
    • Tourism
    • Trade
  • Finance
  • Green Hydrogen
  • Investing
  • Latest
  • Market
  • Mining & Energy
  • namibia
  • News
    • Africa
    • Namibia
  • Opinions
    • Analysis
    • Columnists

CONTACT US

Cell: +264814612969

Email: newsdesk@thebrief.com.na

© 2025 The Brief | All Rights Reserved. Namibian Business News, Current Affairs, Analysis and Commentary

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Companies
  • Mining & Energy
  • Business & Economy
  • Opinions
    • Analysis
    • Columnists
  • Africa

© 2025 The Brief | All Rights Reserved. Namibian Business News, Current Affairs, Analysis and Commentary

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.