Unit Trust Fund
Unit trust Fund is professionally managed collective investment platform that pools funds from different investors or groups and invest the pooled funds in money markets and other investment portfolio.
Capital Markets Authority (CMA) is the only authorized body to regulate Unit trust in kenya.
Types of Unit Trust Fund
There are various investment options for Unit Trust with varied risk exposures and returns as outlined below.
Money Market Funds (MMF)-Funds are invested in Treasury bill, fixed bank deposits and short term bonds. The investment is ideal for people who want to grow their capital at a very low risk. The interest is computed daily and paid at the end of the month. MMF is highly liquid investment since investors can access their funds within 2-5 working days depending with the unit trust.
Read More: Money market
Equity Funds (EF) -Medium-high risk investment, funds are invested in shares of the companies listed in the Nairobi securities exchange(NSE),ideal for persons with high risk appetite due to the volatility of the market. Despite the high risk associated with equity fund, it offers high returns in form of dividends and capital gains through investment.
Fixed income funds –Funds are invested in diverse portfolio such as treasury bonds, fixed deposit and corporate notes. It is a short-term debt securities characterized by low risk suitable for people looking for regular income.
Balanced funds- funds are invested in diversified portfolio of shares, bonds, and money market investments. It’s ideal for investors who are looking to invest in a balanced portfolio with exposure to all market sectors.
Unit trust in Kenya
Below is a list of some of the unit trust in Kenya.
- CIC unit trust
- Equity investment Bank
- Britam Unit Trust
- Amana Capital Unit Trust
- ICEA Lion Unit Trust
- Madison Asset Money Market Fund
- ICEA lion Unit Trust
- NCBA Unit trust