Remember, investments are grouped into classes due to their different levels of risk (capital loss), returns (capital appreciation) and liquidity (ease of exit).
As a rule, higher risk assets yield higher returns.
As a result, a combination of asset classes is often better than investing in either one alone. Combining asset classes into one investment type results in investments that have lower risk, higher returns or both.
However, most investors don’t have the time, money or skill to create that perfect combination of investment solutions.
For them, unit trusts, mutual funds, cooperatives and structured solutions provide a cheap and easy way to access that perfect combination
Unit Trusts in Kenya take the following forms:
Download a PDF version of this guide by clicking here