Oak Special Fund: All You Need to Know About the Fund Offering Over 20% Net Returns

Collective Investment Scheme (CIS) funds offering relatively higher returns are increasingly attracting investor interest, particularly as returns from most passive investment options, such as Money Market Funds (MMFs), continue to decline.

In this article, we review the Oak Special Fund, which began operations early last year and has since accumulated a portfolio exceeding Ksh2.71 billion. We analyse how it works, who qualifies, and everything you need to know to decide whether it’s a suitable option for you.

Read More: All You Need to Know About Mansa X, the Special Fund Offering 24% Returns.

‍What is the Oak Special Fund?‍

Oak Special Fund is a Collective Investment Scheme (CIS) managed by Faida Investment Bank. It was launched in 2024 and offers investors an opportunity to access both local and global markets, diversifying portfolios beyond traditional Kenyan domestic assets. 

The fund has accumulated a portfolio of more than Ksh2.7 billion.

What You Need to Invest in the Oak Special Fund‍

• A minimum investment of Ksh500,000. 
• The minimum top-up for the investment is Ksh50,000.
• The investment will be locked for a minimum of 6 months. Therefore, for the 6 months, one cannot make withdrawals.
• Those investing in the special fund are charged a management fee of 6% per annum. This fee is distributed daily. For instance, if you invest Ksh1 million, the annual management fee will be Ksh60,000. To get the daily this is divided by 365 days. This translates to Ksh164.38.However, it is noted that the figure will increase progressively because the investment also grows owing to the returns made.
• There are no withdrawal fees.

‍What is the Interest Rate for the Oak Special Fund?

According to the fund manager,  the company aims to guarantee a net 20% per annum return for investors.

However, this may fluctuate depending on different factors in the market. For instance, the projected net annual rate, as of June 2025, was 19.08%.  In 2024, the fund had an absolute return of 29.38%

From the table, obsolete returns mean the interest that was recorded in the quarter, while the actualized rate is a projection of what the annual rate will be should the rate witnessed in the quarter remain the same throughout the year.

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Case Study Scenario

Hypothetical Case: According to the projections by the fund, if Deb invested Ksh1 million in the Oak Special Fund in January 2025, her investment would have yielded her Ksh107,162 in returns within 6 months. 

Performance in 2024

In 2024, the fund had an absolute return of 29.38%. Here is a breakdown of the quarterly returns from 2024.

Q1 2024 -15.40%

Q2 2024 - 6.78%

Q3 2024 - 3.15%

Q4 2024 - 4.05%

Q1 2025 - 4.66%

Q2 2025 - 4.88%

‍Where Investors' Funds Are Put

The money raised from investors usually investors is invested in various investment vehicles, both locally and globally.

Globally, the money is put in international equities,  Exchange Traded Funds (ETFs), sovereign bonds, currency trading, and precious metals such as gold, silver, and platinum.

Locally,  the investments are made in government securities, Nairobi Securities Exchange (NSE) equities, and commercial papers, among others.

“By leveraging opportunities in diverse international financial hubs, the portfolio integrates exposure to equities, futures, and options spanning metals, commodities, and currencies. This diversified approach aims to capture broad market dynamics while optimizing risk-adjusted returns across multiple asset classes,” the Fund explained in its 2025 quarter 2 report.

Investment Options

With the Oak special fund, one can invest as an individual or jointly with others. Here are the three available options:

Individual Account – This is suitable for people who are investing on their own. 

Joint Account – This is ideal for two to three people, such as spouses or partners, who want to invest together.

Corporate Account – This is an account designed for registered groups like chamas, investment clubs, or businesses looking to invest collectively.

How to Join and Documents Needed

One will be required to fill out an account opening form and sign it.

The required documents include;

1. ID or passport.
2. Copy of KRA PIN certificate. 
3. Copy of passport-sized photo.
4. Copy of your bank account statement.

In cases of a joint account, all signatories have to provide their documentation.

Benefits of Investing in Oak Special Fund‍

• Diversification: Funds are typically invested across various assets, reducing exposure to any single risk.
• Professional management: Funds are managed by experienced financial experts who aim to maximize returns and manage risks.
• Accessibility: Most funds have clear entry and exit options, with relatively low barriers to start investing.

Risks of Investing in Oak Special Fund‍

• Market fluctuations: returns may vary month-to-month depending on market conditions and underlying asset performance.
• Liquidity risk: The fund has a 6-month lock-in period, meaning your initial investment cannot be readily accessed within that timeframe. 
• Currency risk: Given its exposure to global markets, the fund is subject to currency fluctuations.