How can an investor select a Unit Trust?
- Before selecting a Unit Trust, an investor needs to clearly understand his/her investment goals and the level of risk he/she is willing to bear.
- Based on his/her investment goals and risk tolerance level, he/she can identify the Unit Trust Funds that cater to his/her needs.
- Visit the web sites of the Fund Management Companies and read the Explanatory Memorandum that gives the details of the Fund.
- Check the Performance records of the Funds that cater to your needs.
- Check the fees and charges levied by Funds.
- Then select the most appropriate Fund that meets your requirement.
Who can invest in a Unit Trust?
- Individuals resident in Sri Lanka and Foreign Nationals who are above 18 years of age.
- Companies and institutions incorporated or established in Sri Lanka and outside Sri Lanka.
- Approved Provident Funds and Approved Contributory Pension Schemes registered / incorporated in Sri Lanka.
- Minors can invest with their parents/ guardians as joint applicants.
Who will manage the funds of the Unit Trust?
The funds collected from the investors will be managed by a Professional Fund Manager employed by the Fund Management Company. The investment decisions are usually based on a rigorous research carried out by the Research Analysts of the Fund Management Company. The Fund Manager will take the necessary investment decisions and asset allocation decisions based on the objective of the Fund.
After selecting a Unit Trust, how can the investor make an investment?
Once you have selected the particular Fund that you want to invest, contact the Fund Management Company that manages the Fund. Obtain an application form or download an application form from the Fund Management Company or its website. Forward the duly completed application form together with a copy of your National Identity Card to the Fund Management Company. You may check with your Fund Management Company about the payment details and send a cheque or deposit the money into the bank account.
After investing in the Fund, how does the investor know the value of his/her investment?
After making your investment in the Fund, you can monitor the value of your investment based on the Unit prices that are published daily. You may refer the local newspapers, the Fund Management Company’s website or the UTA website to check the unit prices of the Fund in which you have made the investment. You can also check the performance of the Fund from the UTA website or the Company’s website.
Daily Unit Price as at 2020-02-19Download Report