Not everyone wants to research individual stocks. Unit trusts let you invest in a professionally managed portfolio with as little as KES 1,000.
What Is a Unit Trust
A unit trust pools money from many investors and invests it in a diversified portfolio — stocks, bonds, money market instruments. A professional fund manager makes the investment decisions. You buy units in the fund and benefit from the collective performance.
Types of Unit Trusts in Kenya
Money Market Funds invest in short-term, low-risk instruments like treasury bills. They offer better returns than regular savings accounts — typically 10-14% annually. Equity Funds invest primarily in NSE shares — higher risk, higher potential returns over the long term. Balanced Funds mix equities and fixed income for a middle-ground approach.
Who Offers Unit Trusts in Kenya
CIC Asset Management, Britam Asset Managers, NCBA Investment Bank, Sanlam Investments, and GenAfrica Asset Managers are among the regulated providers licensed by the Capital Markets Authority.
Your Action Step
Compare money market fund rates from at least three providers this week. Look at annual returns, minimum investment, and withdrawal timeline. Open an account and make your first investment.