Different categories of funds .

Unit trust funds are also known as mutual funds. These funds fall into 5 primary categories:

1. Equity funds, also called growth funds. They invests primarily in stocks up to 95%. Meant for aggressive-risk investors. Has higher volatility and risk-return rewards.
2. Income fund, also called bond funds. They invest primarily in corporate or government bonds and debentures up to 90%. Meant for conservative-risk investors. Low volatility. However, if the bonds are forfeited due to non-performance, the fund will also experience loss.
3. Balance funds invests in BOTH stocks and bonds usually in the ratio of 60% :40%. This type of fund is suitable for moderate-risk investors. Medium volatility is due to lesser exposure to stocks.
4. Money market funds. They make short-term investments (usually of less than 365 days) and meant for temporary "parking" the liquid funds whilst waiting for opportunities to invest or to sit out a volatile market.
5. Capital Guaranteed funds are funds that invests primarily in bonds and have a little exposure in stocks in the approximate ratio of 85% : 15%. These funds are usually open to subscription for a limited period of 30 days only. Investors are expected to lock in their investments for a minimum of 3 years to enjoy the capital guarantee feature.
   Every fund in each category has a net asset value (NAV) and each NAV differs daily. The price changes once a day, at 5 pm, when the markets close for the day.
All transactions for the day are executed based on the NAV. The Managers will SELL the units to you based on the NAV plus a Service Charge of between 3% - 10%. They will BUY your units back from you at the NAV price.