Namsia Rhina

Financial Consultant

[ArvoCap Assset Managers @ArvoCap]

The best investors ask questions.

At Arvocap, we have always believed that transparency and investor education go hand in hand. Since inception, we have consistently published monthly fund performance reports, fact sheets, and product information, making them accessible to both our investors and the public.

The recent conversations around investing, returns, fees, and risk highlight something important: more Kenyans are taking an active interest in understanding where they invest their money. We welcome that.

On 25th June at 8:00 PM, @MwangoCapital will be hosting us on their X Space to answer your questions and engage in an open conversation about investing.

Ask us about our products, fund performance, fees, market trends, portfolio management, opportunities in local and global markets, or anything else you'd like to understand better.

Here is the link to the space:
https://t.co/KvXBg2epso

[ArvoCap Assset Managers @ArvoCap]

Understanding when taxes are applied, how fees are charged, and what ultimately reflects in an investor's returns is an important part of investing.

This is one of the key topics we will be unpacking during our X Space on 25th June at 8:00 PM.

Join us as we discuss taxation, fees, fund performance and returns.

Here is the link to the spaces https://t.co/KvXBg2epso

[Mwango Capital @MwangoCapital]

🎙️ Join us tomorrow at 8:00 PM EAT on #MwangoSpaces as we unpack the AAR Insurance FAARMILY Suite.

We'll be joined by Justine Kosgei, CEO & Principal Officer at AAR Insurance, and James Kamau, Group Head of Distribution, for an in-depth discussion on the FAARMILY Suite, its value proposition, and what it means for individuals and families seeking comprehensive health insurance solutions.

Set a reminder and join the discussion:
https://t.co/zSp7byXP9o

[Namsia Rhina @RNamsia]

This creates two sources of liquidity,
Coupon liquidity (interest payments) and Principal liquidity (maturing bonds).

The result is a portfolio that can generate income, preserve capital, and remain flexible even during uncertain market conditions.

[Namsia Rhina @RNamsia]

How to Stay Liquid with T-Bonds.

Many people don't know that you do not have to hold a bond through up to it's maturity hence keep of Bonds because of the long tenure that most of them have.
There are downsides of course of selling them off before maturity

[Namsia Rhina @RNamsia]

However, the ideal approach for the strongest bond portfolios is to combine both strategies:
✅ A laddered maturity structure for access to principal.
✅ A staggered coupon schedule for regular income.

[Namsia Rhina @RNamsia]

Avoids having all capital locked up until one distant maturity date. This happens a lot with people who have the money and "Just" want to buy a Bond. One ends up putting all his or her eggs one basket. Even Bonds should be diversified.

[Namsia Rhina @RNamsia]

because an investment in a long period encounters different kinds of risks including interest rates risk when it comes through bonds. So an investor definitely needs to be compensated for the risks.

[Namsia Rhina @RNamsia]

but with good strategy advise and guidance, you don't have to lose anything

Many investors too lock money into bonds for attractive yields but overlook liquidity needs.

When it comes to Bonds, the long tenured ones tend to have better returns compared to the short ones

[GISTE @ggiste]

I used to work for a certain bank where I was heavily involved in data analysis. One day, I decided to analyze customer accounts based on their balances. I categorized them into two groups: accounts with KSh 5,000 and above, and accounts with less than KSh 5,000.
The results were quite interesting. About 80% of account holders had balances below KSh 5,000, while only 20% had balances above KSh 5,000.

What was even more surprising was the distribution of the total deposits. The 80% of customers with balances below KSh 5,000 held only 20% of the bank's total deposits, while the 20% with balances above KSh 5,000 held 80% of the total deposits. The bank's management was also surprised by these findings, and they eventually created a separate banking service for customers with large deposits.

We went further and conducted research to understand the dynamics behind this pattern.
We found that those with balances below KSh 5,000 were mainly:
Tenants
Parents
Shoppers
Worshippers
Retailers

Most of them were salaried employees.

On the other hand, those with balances above KSh 5,000 were typically:
- Landlords
- Supermarket owners
- Manufacturers and wholesalers
- Churches
- Schools
- Other organizations

The reason was simple: these accounts received money from many people. In fact, we referred to them as "collection accounts."

The lesson I drew from this is that wealth is often built by creating systems, businesses, or assets that generate income from the efforts and transactions of many people, rather than relying solely on a salary.

One challenge is that many employed people never fully grasp this concept because a regular salary can sometimes limit their thinking about alternative ways of generating income and building wealth.

[Namsia Rhina @RNamsia]

Each bond coupon, Sacco dividend, shares dividends, rental income, etc., is you moving that pivot point a little further.

[Namsia Rhina @RNamsia]

If your money needs constant attention, the system is broken or doesn't exist.

If you disappeared for just 30days, what will happen to your income, investments and even cash flow?

[Namsia Rhina @RNamsia]

Financial freedom is not about earning more but it's about moving your fulcrum/leverage point.

The goal is to progressively reduce the portion of your wealth that depends on your Active effort, and grow the portion that is Self-generating.

[Namsia Rhina @RNamsia]

Once built, they produce without your daily effort.

3. Time in the market — this is the most underrated lever. An investment of KES 50,000 started at 25 creates far more wealth than KES 200,000 started at 45, because time stretches the lever arm a lot by far.

[Namsia Rhina @RNamsia]

The mechanisms that act as your lever are:
1. Compound interest — your returns generate their own returns. After a point, your money does more lifting than you do.
2. Passive income streams — bonds, dividends, rental income, business systems.