Following invitation by Ceybank Unit Trust Funds:
Unit Trust of India mulls investments in Lanka
Unit Trust of India (UDI), India’s second largest fund management
company is exploring the possibility of investing in Sri Lanka following
the invitation extended by Ceybank Unit Trust Funds recently.
“UDI being one of the main stakeholders of Ceybank Trust has
expressed interest for further investments in Sri Lanka,” Ceybank
Chairperson Siromi Wickramasinghe told the Daily News Business.
Picture by Saliya Rupasinghe
She said they have held cordial discussions with UDI
Chairman/Managing Director U.K Singha in Mumbai. They are willing to
invest in the Sri Lankan capital market especially in the unit trust
market and the stock market. This would enable the influx of foreign
funds to Sri Lanka from the medium to long term perspective, she said.
UDI was one of the five stakeholders involved in setting up the Unit
Trust Funds 15 years ago. The other stakeholders are Bank of Ceylon,
Merchant Bank of Sri Lanka, Carson Cumberbatch, HSBC Global Asset
Management and Sri Lanka Insurance, she said.
UTI Mutual Fund has demonstrated tremendous resilience and a unique
ability to accept change. This proactive stance has led to the
organisation being voted India’s most preferred mutual fund in the whole
She said that in line with the evolving global trend and also to
allow the mutual fund products to be professionally managed by a
management the team focused sharply on the core business of Mutual fund.
Meanwhile, Ceybank Unit Trust Funds will launch a money market fund
for the public soon.
The current high interest rates in the country prompted them to
launch this money market fund for the public. Therefore, they are keen
on collecting Rs. one billion before April, she said.
Wickramasinghe also said that once they collect the funds from the
public they would reinvest it in Treasury Bills, bonds and commercial
papers to yield a higher return for their customers/investors.
She said that all Unit Trusts being based on securities, which trade
in fluctuating markets, there can be ups and down in the medium to long
term which has been more an upward trend beating inflation and bank
savings interest rates.
Currently, Unit trusts manages mainly two funds in the country. They
also manage Sri Lanka’s largest unit trust fund valued around Rs 2.2
billion and also the biggest Equity Unit Trust Fund (Ceybank Century
Growth Fund). The Bank of Ceylon is the main trustee of the bank, she
She also said that everything operated through the Bank of Ceylon
branch network and the main advantages of investing in Unit are tax free
in annual dividend payments, tax free in capital gains and easy
encashability and access to professional investment managers.