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Unit Trusts in Uganda: A Beginner-Friendly Guide to Investing in 2025

January 5, 2022
Unit Trusts
4 min read

Thinking of investing but don’t know where to start? A unit trust could be your first smart step.

If you’ve heard about unit trusts but aren’t quite sure what they are or how they work in Uganda, this guide breaks it down in simple terms. No jargon. No guesswork. Just practical information to help you invest confidently.

What Is a Unit Trust?

A unit trust is a type of investment fund that pools money from many people to buy a mix of assets like shares, treasury bonds, or fixed deposits. When you invest, you buy “units” in the fund. The value of these units goes up or down depending on how the fund performs.

Instead of picking and managing individual investments on your own, a fund manager does it for you. You benefit from the results without needing to become an expert.

How Unit Trusts Work in Uganda

Here’s a simplified example.
If 100 people each invest UGX 1 million in a unit trust, the fund manager now has UGX 100 million to invest in a mix of assets such as government bonds, treasury bills, and stocks.

As those investments grow in value or generate income, the value of each person’s units increases. If the market drops, the value might decrease temporarily. But because the money is spread across different assets, your risk is lower.

Why Unit Trusts Are a Smart Option

Here’s why more Ugandans are choosing unit trusts:

  • Low starting capital. Begin with as little as UGX 100,000

  • Diversified investments. Your money is spread across many assets

  • Managed by experts. Licensed fund managers make investment decisions

  • Regulated and transparent. Approved by the Capital Markets Authority

  • Flexible access. Withdraw your money when you need it

Types of Unit Trust Funds in Uganda

Fund Type What It Invests In Risk Level Ideal For
Money Market Fund Treasury bills, fixed deposits Low Conservative savers
Fixed Income Fund Government and corporate bonds Medium Income-focused investors
Equity Fund Company shares (stocks) High Long-term growth seekers
Balanced Fund Mix of bonds and shares Medium Balanced risk and return seekers

What Are the Risks?

While unit trusts are relatively safe, you should still be aware of the risks:

  • Market changes. If the market drops, your unit value may decline

  • Interest rate risk. Especially in fixed income funds

  • Manager performance. The fund’s results depend on the investment decisions made by the fund manager

The good news is that fund managers are regulated, experienced, and aim to protect your capital while seeking returns.

How You Earn From a Unit Trust

You make money in two key ways:

  1. Capital Growth. Your unit value increases over time

  2. Distributions. Some funds pay interest or dividends monthly or quarterly

You can redeem your units and withdraw your money at any time. Most redemptions are processed within 3 to 5 working days.

Licensed Unit Trust Managers in Uganda (2025)

1. Old Mutual Investment Group Limited

2. Britam Asset Managers Company (Uganda) Limited

  • Equity Fund Unit Trust Scheme

  • Umbrella Fund Unit Trust Scheme

  • Money Market Fund Unit Trust Scheme

  • Fixed Income Money Market Fund Unit Trust Scheme

  • Fixed Income Money Market Fund Unit Trust Scheme (USD)

3. Sanlam Investments East Africa Limited

4. SBG Securities Uganda Limited

  • Umbrella Fund Unit Trust Scheme

5. Xeno Investment Management Limited

  • Money Market Fund Unit Trust Scheme

  • Bond Fund Unit Trust Scheme

  • Domestic Equity Fund Unit Trust Scheme

  • Regional Equity Fund Unit Trust Scheme

  • General Unit Trust Scheme

6. ICEA Lion Asset Management Ltd

  • Balanced Fund Unit Trust Scheme

  • Money Market Fund Unit Trust Scheme (Available on Level Africa)

  • Income Fund Unit Trust Scheme

  • Okusevinga Money Market Fund Unit Trust Scheme

7. GenAfrica Asset Managers Uganda Limited

  • GenAfrica Fixed Income Fund Unit Trust Scheme

8. Cornerstone Asset Managers Limited

Each provider offers slightly different fund options, fees, and interest rates.

How to Invest in Unit Trusts with Level Africa

Start your investment journey in just a few simple steps:

  1. Create an account at Level Africa

  2. Upload your National ID or Passport

  3. Visit Products and choose Unit Trusts

  4. Select the Umbrella Trust Fund

  5. Deposit funds into your wallet

  6. Place your order

  7. Track your returns anytime from your dashboard

Final Thoughts

If you are looking for a simple, safe, and affordable way to invest in Uganda, a unit trust is a solid starting point. Whether you want to grow your savings, build an emergency fund, or save for a specific goal, it gives you professional investment without complexity.

The best time to start investing was yesterday. The next best time is today.

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FAQs

What is a unit trust in Uganda?
It is a fund where investors pool money to be managed by professionals who invest it in various assets on their behalf.

How much do I need to invest in a unit trust?
You can start with as little as UGX 100,000 and in some cases, even less.

Are unit trusts safe?
They are regulated and diversified, which reduces risk, although returns are not guaranteed.

Do unit trusts pay interest?
Yes. Some funds distribute interest monthly or quarterly, while others grow your capital over time.

Can I lose money in a unit trust?
Yes, but the risk is generally lower due to diversification and professional management.

Level Africa Uganda Limited is regulated by Capital Markets Authority of Uganda. © 2025  Level Africa. All Rights Reserved.