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why you should not invest in unit trusts of kenya
Rank: Member Joined: 7/10/2008 Posts: 4
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Basing on my research in kenya in November 2009, i discovered that trust managers do not invest in the fund they manage. they charge 5% load fee and 2% maintainance p.a. Yet, they do not believe that they can beat the index.
They also hope that individual investors face a lot of risk and there returns are low compared to them.
plz fellow individual investors why do you pay such high charges yet you can invest on your own?.
It is better to do your own research or u risk to lose your hard earned shillings.
remember some unit trust performances cannot be track recorded.
thxs
serukuma
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Rank: Member Joined: 10/29/2009 Posts: 25
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unit trusts are meant to pool resources so that the unitholders can benefit from diversification. If you have reasonable amount of capital (say 1 million) and reasonable amount of knowledge in stock market, there is no point giving your money to the so called investment/fund managers.
This is even worse for unit trusts as trustees (who are advised by the investment mmanagers)have a fiduciary duties under the law and trust deed, so they only tend to take moderate or low risk hence the returns are also moderate or low.
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why you should not invest in unit trusts of kenya
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