Unit Trusts: A Smart Way to Invest in Capital Markets
Unit trusts offer an accessible and professionally managed investment option, allowing individuals to pool their money with other investors to gain exposure to a diversified portfolio of assets. Managed by Unit Trust Management Companies registered with NAMFISA, these schemes invest in a mix of shares, cash, money market instruments, listed property, government bonds, and other securities, tailored to the fund’s specific investment objectives and strategies.
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How Unit Trusts Work
A unit trust is established under a trust deed between a management company and trustees, who ensure the fund adheres to its stated investment policy. When you invest, you buy units in the trust, similar to buying shares in a company. Each unit represents a proportional share of the trust’s underlying assets, and the unit price-known as the net asset value (NAV)-is calculated daily based on the market value of those assets. As the value of the assets fluctuates, so does the unit price, reflecting the performance of the fund’s investments.