What is a Unit Trust?
A Unit Trust (or Mutual funds) is a collective investment scheme which pools the money of investors in a diversified portfolio of securities. Unit trusts will have differing investment objectives such as stock market investment, fixed income investment or balanced funds that invest in both stocks and fixed income securities.
The Unit Trust is managed by a professional Managing Company (ie. NAMAL) while the assets of the Unit Trust are held by the Custodian (ie Deutsche Bank or HSBC)and the interests of the unit holders are protected by the Trustee.Unit Trusts are regulated by the Securities and Exchange Commission of Sri Lanka (SEC) under the SEC Act and Unit Trust Code. All Unit Trust’s have been licensed by the SEC.
