Why Unit Trusts are The Best Investment Option in Kenya Right Now

By Rahab Mbiriti / August 13, 2019



unit trust

“Unit trusts are just professionally managed chamas”, says Amana Capital CIO Reginald Kadzutu.  For Unit Trusts, funds are usually pooled together from different people and invested collectively.

According to Amana Capital, Unit Trusts generally outperform all other saving options on all the measures that count. This is because the key strength of Unit Trusts lies in the spread of investment across various options such as fixed deposit accounts, government bills and bonds, corporate bonds, shares and forex.

Unit trusts answer the most commonly asked question by new investors – “How do I best balance risks with rewards that come with any investment option?”

The general principle of Unit Trusts is diversification of risk and exposure to multiple potential rewards.

This, thus, makes this saving option the most ideal option for most savers, because it gives you the safety that you would look for from a bank account whilst also giving you the potential upside that comes with riskier assets.

Amana Capital avails investment services ranging from short term, mid-term and long term. All of these services are packaged into a collective investment – the Unit Trust.

For short term goals, Amana Capital offers Amana Capital Money Market Fund, for midterm goals (more than one year but less than 5 years) a balanced fund, and for Long term goals (greater than 5 years) a growth fund.

Money Market Unit Trusts

Amana Capital’s Money Market Unit Trust is designed to focus on minimizing risk, and in fact, is structured in such a way as to guarantee that you cannot lose your principal amount, that is, the money you first invested.

Though the money market fund may not give you the returns available from other Unit Trust types, what it will do is get you a better rate of return than a standard savings account while also giving you the safety expected of a savings account.

Read Also: Could Money Market Funds Be the Death of Saccos?

This form of Unit Trust is, therefore, is ideal for individuals and businesses looking for a safe place for their short-term surplus cash.

The Amana Capital Balanced Fund

This type of Unit trust seeks to give you the 9deal balance between watching out for risks whilst also seeking out superior returns.

Unlike the Money Market, in which almost all the money is put into low-risk options, the balanced fund puts some of your money into carefully selected stocks.

Not only does this mean that you enjoy a dividend from those stocks, but it also allows you to benefit from the underlying increase in the value of the stocks.

This type of Unit Trust is ideal for midterm savings, money that you want to put aside for a few years as opposed to a few months.

The Amana Capital Growth Unit Trust

This is focused on the long-term rapid growth of your savings and is usually focused on the stock exchange.

They are not designed for short or mid-term savings, and their value can go up and down. However, through the expertise and market knowledge of your Unit Trust fund manager, the general tendency over time should be for your savings to grow continuously, more so at a very healthy rate of return.

To find out more about what a Unit Trust can do for you, and why you should make Amana Capital your Unit Trust fund manager of choice, go to www.amanacapital.co.ke today.

Read Also: Here are Savings and Investment Options to Consider

 



About Rahab Mbiriti

Rahab Mbiriti is an Experienced Research Specialist working for Sokodirectory with a passion for collecting data, breaking down data and analyzing it for easy consumption. Rahab also has a passion for writing Business and Economic oriented articles.

View other posts by Rahab Mbiriti


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