A unit trust is a way to accumulate wealth in which investors’ contributions are pooled together to purchase a portfolio of financial securities, such as equities (shares), bonds, cash, bank deposits etc., managed by professional fund managers. Unit Trusts are regulated by Capital Markets Authority.

A unit trust’s success depends on the expertise and experience of the company that manages it.

The underlying value of the assets in a unit trust portfolio is directly stated by the number of units issued multiplied by the price per unit. It is also necessary to subtract transaction fees, management fees , and/or other associated costs. Determining management goals and limitations depends on the goals and objectives of the investment of the unit trust.

The main funds available are :

Money market fund – low risk fund which invests in diversified near cash, interest bearing instruments in the Kenyan market. The fund invests in high quality interest bearing investments, fixed deposits, and near cash holdings in the Kenyan Market.

Balanced Fund –   unit trust that invests in diversified asset classes including fixed income assets, offshore, property and equity. It provides investors with medium to long term growth of their capital. It is a medium risk investment vehicle and is suitable for a 3-5-year investment horizon. The diversification boosts return by providing a cushion during a down turn in one asset class.

Equity Fund – fund invests in professionally selected securities listed in the Nairobi Securities Exchange. The fund is suitable for the investor, who is seeking medium to long-term growth through capital gains from the investments. This fund is ideal for the individuals and institutions: Seeking capital growth, Potential to beat inflation and With a long term focus on investment.

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