An Equity Fund is a type of a Unit Trust. An Equity Fund is a medium-high risk investment that invests mainly in listed companies on the Nairobi Securities Exchange (NSE).
The Equity Fund is suitable for you as a saver or investor if you seek long-term capital growth. As with any Unit Trust, you can access your funds at any time. However, because the performance of an Equity Fund as a high risk investment is subject to market performance, there are no guarantees on returns due to the fact that the fund value varies day to day. An investor may therefore reap great rewards or suffer loss depending on when one withdraws their funds.
The Equity Fund is suitable for savers and investors seeking long-term capital growth because the risk level is medium-high; interest to be earned is subject to market forces, so there are no guarantees on return due to the fact that the fund value varies day to day, based on market performance.
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At ICEA LION, you can set up your Equity Fund for as little as KES 500 and top up with whatever amount you wish to save or invest at any time. There is a no minimum top up nor do we charge withdrawal fees. The interest or yield on your account is accrued on daily account balance.
Also known as Liquidity, Unit Trust Funds offer you the opportunity to access your funds easily. There are no fixed periods per se so you can access your money whenever you need it in part or as a whole, with no penalties. At ICEA LION, for amounts less than KES 10,000 via mobile money, you can access your funds under 24 hours, whilst those above KES 10,000 can be sent to your bank account within 3 working days.
Our Self Service portal allows you to update your profile, deposit, withdraw and view your transactions.
Unit Trusts are created by what is called a deed, which constitutes a contractual agreement that governs the relationship between you, the investor, the investment/fund manager, the trustees and Capital Markets Authority, who supervise and ensure the integrity of the investment plan for Unit Trusts. As a result, the investors rights are protected.
The fact that your investment is pooled with others, gives you access to investments that would otherwise be unaffordable or inaccessible to you as an individual investor.
Your funds are managed by a team of qualified and experienced professionals who advise and guide you throughout your investment journey based on your goals, risk profile and your current financial position.
Unit Trusts take advantage of the pooled funds to give individual investors access to a variety of investment instruments. The economies of scale offer the opportunity for investment in diverse portfolios which you would otherwise not be able to enjoy as an individual. Further, the diversified range of assets reduces the risk you would face if you directly invested in only one asset class.
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This fund invests primarily in listed companies on the Nairobi Securities Exchange (NSE).
It is suitable for savers and investors seeking long term capital growth.
Risk levels: High.
The interest to be earned is subject to market force, so there are no guarantee on return because the fund value varies day by day, based on market performance. An investor may therefore reap great rewards for suffer lose depending on when they cash in.
This fund invests primarily in listed companies on the Nairobi Securities Exchange (NSE) as well as investment instruments that allow you to gain interest on your investment such as in fixed deposits and bonds. Suitable for investors seeking a balanced portfolio between liquidity (the ability to access your funds easily) and growing your capital.
Risk Level: Medium
This is a less risky fund than the Equity and Bond Fund because your capital is invested in both secure and interest earning investments that vary subject to market forces. As such, with this fund, the probability of loss of your capital is reduced.
This fund invests primarily in interest bearing assets like fixed deposits and short-term bonds. Suitable for investors seeking liquidity (the ability to access your funds easily), monthly income in the form of interest added onto your capital as well as preservation of your capital.
Risk Level: Low
It is considered the least risky fund because you never lose your invested capital however, interest varies from day to day depending on market performance.
This fund invests primarily in a diversified portfolio of treasury and corporate bonds. Suitable for investors seeking to put their money in a diversified portfolio of bonds that offer regular or periodical income.
Risk levels: Medium-High.
This is because the interest to be earned is subject to market forces, so there are no guarantees on return due to the fact that the fund value varies day to day, based on market performance. An investor may therefore reap great rewards or suffer loss depending on when they cash in.
Management Fee: It is important to note that a management fee is applied to your account balance daily (0.0055% per day or equivalent to 2% per annum). This is due to the fact that the interest rate changes daily based on market performance and because you have the liberty to withdraw your funds at any time. This way, you are not charged an annual amount, rather we apply a charge day on day based on what amount is in your fund that day.
Sound Governance Framework: The governance framework incorporated in the ICEA LION Equity Fund ensures the protection of unit holders’ interests. The Capital Markets Authority (CMA) regulates Unit Trust Funds, under the CMA Collective Investment Schemes Regulations 2001. The fund is created by a trust deed, which constitutes a contractual relationship, governing the relationship between the trustee, fund manager and unit holder. The fund has a trustee, KCB, whose main role is to exercise care and diligence in accordance with the trust deed and act in the best interest of unit holders. The custodian, Standard Chartered, ensures safekeeping of all assets of the fund. The auditor, Deloitte, is responsible for the auditing the fund’s financial statements in order to independently verify and ascertain their accuracy.
Benchmarking: The benchmark of the ICEA LION Equity Fund is the NSE 20 Share Index. As such, our fund seeks to offer a competitive yield relative to the benchmark. If you would like to find out how ICEA LION invests in order to deliver returns for our Equity Funds, click here
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