Breaking Down Old Mutual's Unit Trusts And Why They Should Inform Your Investment Plan For 2023

Breaking Down Old Mutual’s Unit Trusts And Why They Should Inform Your Investment Plan For 2023

By Juma / Published January 20, 2023 | 12:32 pm

KEY POINTS

Old Mutual has four Unit Trusts so far:

Money Market Fund
Balanced Fund
Equity Fund
Bond Fund

KEY TAKEAWAYS

From our research as Soko Directory, 2023 will be defined by investing in Unit Trusts. Our analysis showed that at the peak of Covid-19, Unit Trusts were the only investment vehicles where investors were cushioned from shocks and assured of their initial investment.

The year 2023 is here with us. The longest month of the year, metaphorically, January, or as some call it, Njaanuary, is almost coming to an end. Traditionally, despite people struggling financially, January is often the month of planning and realigning one’s financial goals and plans.

The Cabinet Secretary for National Treasury, Professor Njuguna Ndung’u, has already told Kenyans to “expect a difficult year financially.” According to the CS, the economy is likely to perform dismally as compared to other years, and Kenyans should tighten their belts.

What the good CS meant was not that Kenyans should be scared and retreat into their corners and start crying and wailing about the economy. What he meant is that this year, Kenyans need to make wise financial decisions and invest in avenues that will give them better returns.

Talking of investing wisely, it is not easy for one to choose the right avenue. Many, of course, will run to online platforms where a story with the best Search Engine Optimization (SEO) wins. And many have ended up losing their hard-earned money to fraud.

When the Covid-19 pandemic first hit Kenya, many businesses were shaken. Millions of businesses shut down and people lost millions of shillings worth of investments. Millions of Kenyans lost their jobs too. Those who had planned to invest from the year 2020 were lost in where to begin.

Some chose to buy pieces of land through schemes that they saw being advertised by influencers and mainstream media. But for most of them, it has emerged that they were actually buying plots that do not exist. Let us just say, they were buying “hot air.”

So, as the year kicks off, where can you invest the little money that you have? Who within the market can you trust your money with? What investment vehicles can you board and make money?

From our analysis also, we analyzed various service providers and landed on Old Mutual Unit Trust offerings. We came to the conclusion that if you are to invest in Unit Trusts, then Old Mutual should be your first stop of shopping and we shall give you reasons why.

Old Mutual has four Unit Trusts so far:

Money Market Fund
Balanced Fund
Equity Fund
Bond Fund

Old Mutual Money Market Fund

The fund is suitable for individuals who want to start their investment journey or are looking for a place to build an emergency fund – normally considered three to six months of monthly expenses.

This fund is also suitable for a corporate or an individual who seeks to grow their capital while ensuring investment risk is contained.

The beauty of this product is that funds can be accessed within a few days (immediate liquidity) and that it is a low-risk fund and provides return/ yield without penalties. At the same time, capital stability as the fund rate of return aims to outperform the inflation rate.

Returns generated from this fund are distributed monthly, and you can elect to reinvest (recommended) to compound and grow your investment faster or pay to your bank account. You also have the freedom to switch your investment between different funds to maximize your gains.

Old Mutual Banaced Fund

This Fund is suitable for investors who have an investment horizon of greater than one year. The fund is suitable for those who have a moderate tolerance for fluctuations in investment value.

This fund provides long-term capital growth with a total return objective and offers medium risk. What is more, you can invest or deposit as low as 50,000 shillings.

Old Mutual Equity Fund

This fund invests in a diversified portfolio of predominantly Kenyan shares designed for long-term capital growth through dividends and capital gains from the investments. It is suitable for investors who have an investment horizon of greater than 5 years, seeking superior returns and a higher tolerance for fluctuations of the investment value.

If you have a high-risk appetite and are willing to invest in a diversified portfolio of predominantly Kenyan shares designed for long-term capital growth through dividends and capital gains from the investments, then this fund is for you. The fund offers exposure to a range of domestic shares and you can deposit as low as 50,000 shillings.

Old Mutual Bond Fund

This is a fund that seeks to have long-term capital growth and periodic income return from a well-diversified portfolio of treasury bonds, corporate notes, and fixed and call deposits. It is suitable for individuals with a plan to invest for a period over two years, who have a low-risk appetite, and who seek a return that is higher than that of a savings account.

The fund provides long-term capital growth and periodic income return from a well-diversified portfolio of Treasury bonds, corporate notes, and fixed and call deposits. Typically plan to invest for a period of over two years and it comes with a medium to long-term lower-risk returns.

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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