it's surprising to note,that must unit trust managers performance do not out perform the market index. yet majority of they holding assets in their portifolio is 60% comprise of stocks in the index.

on my investment tour to kenya,i discovered that unit trust managers believe in long term and creating value to shareholders. however,when i asked these managers whether they also invest in the unit trust they manage,the answer was either 'no' or we do not disclose that information.

what does this mean to you?. it may mean that you risk your hard earned income to these managers who do not mind,afterall,you are charged 5% load fee and maintainance of 2% p.a.

so active investors,its being lazy for you at this time to invest in unit trust especially when their performance can be in position to beat the index.

if you are deep in love with unit trust hoping that the mangers will reduce the risk for you and make money for you,then they should also allow this idea of insteady of charging you 2% p.a they should charge 20% on the profit made. this will motivate them to work harder.

this is my view what about you.

Best regard

serukuma


serukuma edward
msc acc and fin
why do you think institutional investors are more informed in nse and other markets?