Unit Trusts in Kenya
Are you looking for a simple, secure and rewarding way to save and grow your wealth in Kenya? Unit Trusts are a good mix for a portfolio for individuals looking to embark on their investment journey and unlocking better ways to manage their money.
What are Unit Trusts?
Unit Trusts are financial assets referred to as investment funds managed by professional fund managers who pool investors’ money to invest in a diversified portfolio of assets such as stocks, Government securities, and other financial assets. They offer a convenient way to access a diverse range of investments with relatively low risk. The investment is divided into units which are then purchased by investors. Profits generated from the unit trusts are then passed directly to the investors who can choose to reinvest the interest in the fund.
Disclaimer: Investing in unit trusts carries risks, and past performance (empirical data) is not indicative of future results. Make sure to do your own due diligence and if you prefer can consult with a financial advisor to guide you before making any investment decisions. Be sure to confirm you are dealing with a registered and approved financial advisor and don’t share your personal details; security details included.
Investing in Unit Trusts is a smart way to make your money work for you in Kenya by reinvesting the gained interests. Whether you’re saving for a major life goal or planning for a comfortable retirement, Unit Trusts can help you achieve your financial dreams. Don’t miss out on the opportunity to unlock healthy money management, grow your wealth, secure your future and enjoy life.
Why Invest in Unit Trusts in Kenya?
- Diversification: Spread your risk across various assets in your portfolio, reducing the impact of low return and poor performing assets in the portfolio.
- Professional Management: The fund managers are skilled and have an expertise to make investment decisions on behalf of investors, maximising the chances of achieving solid and positive returns. Fund managers spread the pooled funds from investors into different financial assets in the market and monitor their performance to adjust the distribution of funds.
- Affordability: Unit Trusts make it accessible for individuals with varying budgets to invest in the financial markets. They are less capital intensive to allow majority of the people to invest and save.
- Liquidity: Investors can access their funds in Unit Trusts at any time, providing flexibility when you need it. With most Unit Trusts allow about 2-3 days for the funds to reflect in your bank account when you withdraw.
- Regulation: The Capital Markets Authority (CMA) in Kenya regulates Unit Trusts under the ‘Approved Collective Investment Schemes’ category, ensuring transparency and security for investors. Investors can also access statements for their investments in Unit Trusts at any time to monitor their progress.
- Profitability: Most unit trusts earn investors interests which they can reinvest and benefit from compounding effect. ‘The interest continues gaining more interest.’
How to Get Started
- Choose a Fund: There are various Unit Trust funds in Kenya; all regulated by Capital Markets Authority (CMA) operating with legal licences each with its own risk profile and investment strategy. Select the fund that aligns with your financial preferences.
- Consult a Financial Advisor: If struggling with decision making, it’s essential to seek advice from a financial professional who can guide you through the selection process and help you create an investment plan. You can also get the help from the fund of choice who can take you through their range of Unit Trusts.
- Invest and Monitor: Invest in your chosen Unit Trust and track its performance. Regularly review your investment statement to ensure it aligns with your financial plan and objectives. Likewise, keep an eye on the released reports by the funds to understand the structure and performance of the Unit Trust.
Capital Markets Authority has a detailed list of all the registered Unit Trusts in Kenya which can be viewed here. Follow the provided fund site for fund specific details of all their Unit Trusts.