Unit trusts pool contributions of many investors into one large fund (pooled fund) which can then be invested in a variety of financial products, including money market, treasury and corporate bonds, shares and property. These funds provide a good investment option due to the nature of “collective investments", which benefit from the expertise of fund management that diversifies money and lowers the risk of losing money.
There is no limit to the amount you can invest within the fund. Unit trusts are licensed by the Capital Markets Authority of Uganda under the Collective Investments Schemes Act of 2003, and an independent trustee who is the registered holder of the scheme’s underlying assets. This is typically a commercial bank.
Unit trusts offer the investor:- Quick access to funds (liquidity)
- Diversification of investments
- Excellent returns
- Expert decision making
- Flexible and affordable investment
- Cash withdrawal facility
- Professional investment input in the creation of investment value
- Lower/minimal investment costs