Unit Trusts
Unit Trusts are made by creating a common pool of savings by members also known as investors. These pooled savings are invested in selected securities such as shares, treasury bills/bonds and money market instruments. Investors receive units determined by the value of his/her investment. These investments are managed professionally by Fund Managers.
Types of Unit Trusts
- Money market fund
- Balanced fund
- Equity fund
Money Market Fund
An ideal investment for the low risk, safe investors, investments are done in high quality interest bearing investments, fixed deposits and near cash holdings within the country. The main objective is to ensure the investor earns good returns – interest, which is usually determined by market performance. The interest earned can be either credited to the investor’s bank account to generate cash flow catering for one’s monthly expenses or reinvested into the FUND allowing the investor to maximize returns on investment through compound interest. The choice is yours.
- 1. Minimum investment amount varies from one company to the other, from as low as an initial investment of Kshs.1000 and additional monthly top up of Kshs. 1,000 upwards.
- 2. You can access your money within notice of 2 – 4 working days.
- 3. Monthly statement will be provided.
Balanced Fund
Balanced Fund allows you to invest in the medium and long-term while managing the risk, it contains a stock market component, a bond component and money market component in a single portfolio, balancing between equity and debt, mostly for investors with an objective of growth and income. Members’ contributions are pooled and invested in shares of companies listed at the Nairobi Securities Exchange (NSE) as well as various interest earning investments. The price of units will go up or down depending on the performance of the stock market, therefore investors should be willing to accept some medium risk exposure. The component of shares in this fund makes it volatility especially in the short-term, the recommended period of investment is 3 years, lump sum investments will give you better returns.
- 1. 4.5% initial fees is charged on the Balanced fund
- 2. Access to your money within 2 – 4 working days.
- 3. Monthly statement will be provided.
Equity Fund
Equity funds invests principally in stocks listed in the Nairobi Stock Exchange. It’s a high risk, high returns investment and therefore highly recommended for the long term investors, 5 years and above.
- 1. 5% initial fees is charged on the Equity fund
- 2. In need of your money? Give a notice of 2- 4 working days.
- 3. Monthly statement will be provided.
