C-TRADE onboards Unit Trusts
C-TRADE, the country’s first mobile and online platform for the trading of securities had introduced Unit Trusts to give investors a wide array of choices through its automated platforms (USSD, Mobile and Online). Currently C-TRADE has on boarded Old Mutual Limited and is working on bringing along more Fund Managers.
This move is meant to eliminate face to face interactions by automating the front-end interface between Old Mutual Unit Trusts and its subscribers while increasing accessibility and visibility of Unit Trusts. Old Mutual offers a variety of funds namely Property Fund, Bond Fund, Balanced Fund, Money market Fund and Equity Fund.
This development benefits investors as it gives them access to a professionally managed fund by a registered Investment Manager and access to diversification of risk. The automation provides for operational efficiency through automated interface with potential clients and fund subscribers. It offers enhanced customer convenience through technologies that allow access to investments anytime and anywhere. The automation further provides a huge leap forward in transparency to the fund investors.
Unit Trusts have gained in popularity amongst investors in recent years as an easy and affordable way to invest their money. The ability by Unit Trusts to provide for capital growth in the medium to long term, makes them quite an excellent hedge against inflationary pressures such as are ruling at present in the economy. The pooling of funds which are then invested across various investment schemes offers diversification against risks inherent in the markets.
C-TRADE will facilitate for retail and institutional to subscribe and disinvest via mobile, USSD and the Web portal platforms of C-TRADE. C-TRADE provides investors with a one stop shop which facilities for purchasing of units trusts based on which of the fund’s terms are most favourable to them. These terms differentiate funds and include the following investment strategy, fund’s tenure, Net Asset Value (NAV), management strategy and the current rate of subscription by other investors into the same Fund etc.
Unit Trusts are collective investment schemes classified under mutual funds. A mutual fund is a registered open-end investment company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined securities and assets the mutual fund owns are known as its portfolio, which is managed by a registered investment adviser. Each mutual fund share represents an investor’s proportionate ownership of the mutual fund’s portfolio and the income the portfolio generates. Unit Trusts (UTs)make a one-time public offering of only a specific, fixed number of redeemable securities called units and which will terminate and dissolve on a date that is specified at the time the Unit Trust is created.
C-TRADE will continue to push the technology boundaries and has a number of enhancements lined up to allow to provide investors with a wide array of convenient choices and products to invest in within the local capital market. Unit Trusts make a one-time public offering of only a specific, fixed number of redeemable securities called units and which will terminate and dissolve on a date that is specified at the time the Unit Trust is created.