Unit Trust Comparison Calculator

Unit Trust (Mutual Fund) Comparison Calculator

Project the future value of your investments and see how fees impact your long-term growth. Add multiple funds to compare them side-by-side.

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Your First Step into Investing: My Guide to Unit Trusts in Kenya

As someone who has spent years in corporate governance and policy implementation, I’ve always valued sound financial planning. Many Kenyans I speak to find the idea of investing in stocks or bonds intimidating—understandably so. But Unit Trusts have changed that for me and countless others. They offer a straightforward, affordable way to step beyond a basic savings account and start truly growing wealth.

A Unit Trust pools money from many investors, including people like me, and then a professional Fund Manager invests it across a range of assets. This gives me instant diversification and expert oversight—advantages that would be hard (and expensive) to achieve on my own. Let me share how I think about Unit Trusts, the types available, and how you can decide what’s right for your financial goals.


Learning the Language of Unit Trusts

Before I made my first investment, I took time to understand some essential terms. Knowing this vocabulary helped me feel more confident and make informed decisions.

Table 1: Key Unit Trust Terms as I Use Them

Term What It Means Why It Matters to Me
Unit Trust A pooled investment where money from many people is combined and managed by professionals. It lets me own a slice of a large, diversified portfolio even if I only have a small amount to invest.
Fund Manager The licensed experts who make the day-to-day investment decisions. Their skill is what drives my returns, so I only work with managers approved by the Capital Markets Authority (CMA).
Unit Price / NAV The daily value of one unit in the fund, based on the underlying investments. When I buy in, I purchase units at this price. As it rises over time, so does my investment.
Yield / Return The fund’s growth over a specific time, shown as an annual percentage. This tells me how the fund has performed, though I always remind myself past returns aren’t guarantees.
Management Fee The annual fee taken by the fund manager, a percentage of what I’ve invested. It directly reduces my returns, so I look for competitive, reasonable fees.

Picking the Right Path: Types of Unit Trust Funds

Unit Trusts aren’t all the same. Each one is designed for different goals and risk comfort levels. I always start by matching the fund to my needs. In Kenya, these are the four main types you’ll come across.

Table 2: Comparing Main Unit Trusts in Kenya

Fund Type Main Investments Risk Level Best For People Like Me Who Want…
Money Market Fund (MMF) Short-term, low-risk assets like Treasury Bills and quality deposits. Very Low An emergency fund, short-term savings (under 2 years), or a better return than a typical bank account.
Bond / Fixed Income Fund Long-term government and corporate bonds. Low to Medium Predictable income with moderate safety, for goals in 2-5 years.
Balanced Fund A mix of stocks, bonds, and cash. Medium All-in-one growth plus some stability, for medium-term plans.
Equity Fund Mainly stocks listed on the Nairobi Securities Exchange (NSE). High Long-term capital growth over 5+ years, accepting market ups and downs.

How I Decide Which Fund is Right for Me

I’ve learned that chasing the highest return last year isn’t wise. The best fund for me is the one that fits my goals, timeline, and comfort with risk. Here’s the simple checklist I use before making any investment.

Table 3: My Personal Investment Checklist

Question I Ask Myself How It Guides My Choice
1. What is my goal? If I need an emergency fund, I stick to an MMF. If I’m investing for retirement in 20 years, I can consider an Equity or Balanced Fund.
2. What’s my timeline? Short-term money (under 3 years) stays in low-risk funds. For long-term plans (over 7 years), I’m okay taking more risk.
3. What’s my risk tolerance? If market drops stress me out, I prefer MMFs or Bond Funds. If I can handle ups and downs for better potential growth, I go for Balanced or Equity Funds.
4. Have I compared fees? I look at fact sheets and calculators to see how management fees will affect my net returns.
5. Is the Fund Manager CMA-licensed? This is non-negotiable. Only regulated managers give me peace of mind that my money is secure.

Taking this structured approach has helped me go from being just a cautious saver to a confident investor. Unit Trusts are a powerful way for me—and for you—to start building wealth with expert support. Choosing the right one is the most important first step.

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