Increase in Unit Trust Funds

Unit Trust Funds in operation has increased from 13 to 40 during the period of the last ten years. The reason was that the country's investment climate improving tremendously due to the end of the war situation in the country, market sources said.

"With the entering of eight management companies, its total Asset Management has increased from Rs 2.1 billion in December 2000 to Rs 30.9 billion in December 2012," P. Asokan, President of the Unit Trust Association of Sri Lanka said.

He said in a report that Unit Trusts can be broadly classified into Open-ended Funds and Close-ended Funds. Open-ended Funds are funds where investors can enter and exit at any time they wish. There is no limitation to the number of units that can be issued by an Open-ended Fund. Close-ended Funds are funds which issue a limited number of units and have a maturity period.

Investors could subscribe for the units in a Close-ended Fund only during the initial offer period and they can get their investment together with the returns earned only at maturity Asokan said .

In both these categories there can be different types of Unit Trusts catering to the diverse needs of the investors.

HDH