Unit Trust Information

  • What is a unit trust investment?

    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 Example with numbers You invest 10,000 LKR today. NAV = 20 LKR → you get 500 units.   2 years later NAV = 26 LKR → your…

  • What’s the difference between a unit trust and a FD?

    Unit Trust vs Fixed Deposit = Growth potential vs Guaranteed safety Both are investments, but they work very differently. Here’s the head-to-head: 1. Core difference Fixed Deposit(FD) Unit Trust You lend money to a bank You a slice of 30- 50 investments Bank promises fixed interest No promise. Return depends on market 100% copital safe…

  • How do I invest in unit trusts?

    Here’s the simple 5-step version for Sri Lanka: Step 1: Pick a fund company Go with one that has online signup + low minimum.   Good beginner options: NDB Wealth, CAL, JB Vantage, First Capital. Step 2: Open an account online Takes 15 mins. You’ll need: 1. NIC photo 2. Address proof – Bank statement or…

  • What are the benefits of investing in unit trust?

    1. You can start tiny Direct stocks: Need 10k-20k to buy even 1 lot + diversify.   Unit trust: Start with 1,000 LKR. That 1k gets split across 30-50 companies instantly. 2. Expert does the stock picking You don’t need to read balance sheets or watch CSE daily. A full-time fund manager handles it. You avoid…

  • Are unit trusts safer or can I lose all my money

    Technically yes, realistically almost impossible. But “safer” depends on which unit trust you pick. Not all are equal. 1. Can you lose 100%? Extremely unlikely To lose everything, all 30-50 companies + bonds in the fund would have to go bankrupt at the same time.  That’s like saying the entire CSE + government bonds all…

  • How much return can I expect from unit trusts yearly?

    There’s no guaranteed return. It moves with the market. Here’s what’s realistic in Sri Lanka based on last 5-10 years: 1. By unit trust type – what to expect Fund type Risk Avg yearly return What it invests in Money Market Fund Very Low 5% – 8% T- bills, FDs. short-trem debts Income/Gilt Fund Low…

  • How mutch money do I need to start investing in unit trusts?

    It depends on the fund and company. Here’s the real breakdown: 1. Minimum to start – one-time lump sum Company Min initial investment NDB Wealth 1,000LKR Capital alliance/CAL 5,000LKR JB Vantage 5,000LKR Ceybank Unit Trust 1.000LKR So if you have just 1k, go with NDB Wealth or Ceybank. With 5k, all doors open. 2. Monthly…

  • how often should I check my unit trust performance?

    Checking daily will drive you crazy and make you do dumb stuff. Here’s why + what to actually do: 1. Why checking too often backfires Equity Funds move like CSE: +2% today, -1.5% tomorrow, +3% next week.  If you check daily, you’ll see this: Result: You sell low, buy high. Exact opposite of making money.…

  • How do I sell my units and get cash back?

    Selling units = “redemption”. It’s 100% online now and takes 1-4 working days to get cash. No broker needed. No haggling. Here’s the exact process: 1. How to sell – step by step Most companies like NDB Wealth, CAL, First Capital use similar apps/portals. Paper form option: Still exists. Download form, fill, email/scan. But online…