A Unit Trust/Mutual Fund is a collective investment pool made by many investors with a common investment objective. This pool of money is used to purchase a portfolio of financial securities. In exchange for the money invested, the fund issues units to each investor, who are then known as unit holders.

A Unit Trust/Mutual Fund is set up by a trust deed and is an independent legal entity. The trust is administered by its trustee and managed by a professional fund management company under the supervision of SEC.

Unit Trusts/Mutual Funds are ideally suited to people who do not have the time or expertise needed to select individual investment products themselves, or who have limited financial capability but want the benefits of professional asset management and diversification.

Pooling of funds with other investors can offer following advantages:

• Liquidity and convenience: The fund invests into short term money market instruments giving fund investors the ability to quickly invest and withdraw their investment
• Competitive risk adjusted returns: The fund returns exceed bank deposit rates of a similar maturity profile.
• Security: The fund invests into high quality fixed income instrument issued by rated or listed banks, finance companies, corporates as well as Treasury instruments
• Diversification: The fund could hold more securities than an individual or a company thus diversifying your risk exposure.
• Professional fund management: Managed by a highly experienced and professional team of Portfolio Managers backed by a dedicated Research team.
• Efficiency: The fund actively tracks investment maturities, seeks new investment opportunities, and reduces the number of investments to keep track of, freeing time for unit holders

The Fund will invest into following high quality money market instruments with a residual maturity of less than 366-days. This would include short term fixed income securities such as

• Government bonds
• Treasury bills
• Fixed deposits
• Securitized trust certificates
• Commercial papers
• Debentures
• Repos and reverse repos

Normally within three working days after receiving a sell / redemption order.