Why Unit Trusts are a viable option for investing

Kampala, Uganda | THE INDEPENDENT | Geoffrey Byamukama, a 30-year-old businessman, said he got tempted to put some of his money into schemes promising quick riches. He tried two of these investment plans that his friends recommended, but they didn’t deliver as promised. He ended up losing all his money both times.

He wanted a better, safer way to grow his savings and avoid these schemes. That’s when he found out about something called “unit trusts” online. Unit trusts are like a savings club where people, including groups, SACCOs, companies, and individuals, put money regularly, and in return, make money each day, which is paid monthly in the form of Interest. The name “Unit Trust” comes from three words: “collective,” “investment,” and “group.”

After researching for a few months, Byamukama decided to invest with ICEA LION’s Unit Trust fund.

According to Byamukama, “The great thing about unit trusts is that you don’t need to be super rich to invest in them. They’re meant for regular folks with normal incomes. You can put in a lump sum or make regular daily or monthly payments, often starting at around Ushs 100,000. And here’s a bonus: you don’t pay taxes on the money you make from unit trusts, making them one of the best ways to invest your money tax free.”

He adds that “ICEA LION’s Unit Trusts have a great feature – they’re always open, which means you can keep your money invested there without any restrictions. They enable you make a profit every day, and you can access your money whenever you want, whether it’s after a month, six months, or whenever you like at no cost.”

According to an ICEA LION statement, here it how it works: A unit trust fund is made up of little pieces called “units.” These units have a price that changes every day. For instance, if you invest Ushs 2,000,000 in a unit fund, you might get an 11% return at the end of the month, which would be Ushs 18,082, as net Interest.

“When you decide to start investing with ICEA LION’s Unit Trusts, they’ll ask you some questions to figure out how much risk you’re okay with and whether you want to invest for the short or long term.

Then ICEA LION managers who handle your money will match your preferences with the right investments. They’ll keep an eye on your investments and let you know how they’re doing periodically.”

Byamukama, who’s happy with his investment, hails ICEA LION for giving him a safe way to invest through their Unit Trusts. After five years, he used a good chunk of his earnings to buy some land in Zirobwe. He plans to build rental units there to make more money.

Byamukama knows that investing has its risks, and can’t stress enough how important it is to do your homework when choosing one. “Getting advice from money experts like ICEA LION Asset Management Limited, is a smart move too as you build your wealth.”