Unit trust investment = pooling your money with other investors so experts invest it for you.
Think of it like a “money potluck”:
How it works, in 3 steps
- You + others put money in: You invest 5,000 LKR, I invest 10,000 LKR, 1000 others also join. Total pool = 500 million LKR.
- Expert invests the pool: A licensed fund manager uses that 500M to buy stocks, bonds, T-bills, FDs. Not just 1 thing. 30-50 different investments.
- You own “units”: Your 5k buys units of that fund. If 1 unit = 25 LKR, you get 200 units. Unit price goes up → your money grows.
Example with numbers
You invest 10,000 LKR today. NAV = 20 LKR → you get 500 units.
2 years later NAV = 26 LKR → your 500 units = 13,000 LKR.
You made 3k without picking a single stock.
3 key features
1. Diversified: 1 unit = tiny piece of 50 companies + bonds. If 1 company crashes, you barely feel it.
2. Managed: Fund manager does all research + buying/selling. You don’t need to watch CSE daily.
3. Liquid: Need cash? Sell units any business day. Money hits your bank in 2-3 days. No 1-year lock like FDs.
Unit trust vs other stuf
| Option | Min to start | Who manages |
| FD | 5,000 LKR | Bank |
| Direct stocks | 10k-20k | You |
| Unit trust | 1,000 LKR | Fund manager |
Bottom line: Unit trust = “I’ll pay 2% yearly fee so an expert invests for me with just 1k, and I don’t have to stress.”
