Uganda:
A unit trust fund is made up of units (think of these as shares) which have a unit (or share) price that fluctuates every day. For example, if you invest UGX 1,000,000 in a unit trust fund whose current unit price is UGX 100, you will be issued 10,000 units (=1,000,000 divided by 100) in return.
Your UGX 1,000,000 investment is then pooled together with funds from other investors and collectively invested by the fund manager. The value (including gains or losses) of the underlying assets is calculated every day and the price of each unit of the fund is updated to reflect the gains or losses.
The price of each unit moves based on the value of the underlying assets driven by interest accruals and/or capital appreciation/depreciation. Continuing with our example above, if the price of each unit increases to UGX 101 the next day, then your investment will be UGX 1,010,000. On the other hand, if the unit price falls to UGX 99 the next, then the value of your investment will fall to UGX 990,000.
Kenya
A unit trust fund is made up of units (think of these as shares) which have a unit (or share) price that fluctuates every day. For example, if you invest KES 10,000 in a unit trust fund whose current unit price is KES 100, you will be issued 100 units (=10,000 divided by 100) in return.
Your KES10,000 investment is then pooled together with funds from other investors and collectively invested by the fund manager. The value (including gains or losses) of the underlying assets is calculated every day and the price of each unit of the fund is updated to reflect the gains or losses.
The price of each unit moves based on the value of the underlying assets driven by interest accruals and/or capital appreciation/depreciation. Continuing with our example above, if the price of each unit increases to KES 101 the next day, then your investment will be KES 10,100. On the other hand, if the unit price falls to KES 99 the next, then the value of your investment will fall to KES 9,900.
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