| dc.description.abstract | Unit Trust is an open-ended investment scheme, which enables individual investors to pool their
money into funds which can be invested in a wide range of suitable stock market investments or
money market instruments. A trust is an agreement where a person gives his property to another
to hold on trust for the benefit of a third party or an object called the beneficiary. Tn the
contemporary market place, a UT is initiated by a professional fund management company
commonly called 'manager' .58 It is constituted by a trust deed executed between a manager and
a trustee, which provides that assets of investors, commonly called the unit holders, will be held
as directed by the manager in accordance with the terms of the trust deed. Unit trusts are
positioned as an advanced investment to small savers which offers a diversified asset portfolio
for investors, who, may participate as individuals or jointly. In this respect, medium businesses
would purchase unit trust products and distribute returns to members as dividends or retained
earnings. The purpose of this study is to investigate the challenges to funds mobilization by unit
trusts in Kenya.
This study therefore, sought to specifically determine the effects of innovation, interest rates and
business environment on funds mobilization by unit trusts. The study used a descriptive research
design. The target population was drawn from the 16 registered unit trusts and fund managers
based in Nairobi who are actively 'involved in the management of funds. Simple random
sampling was used to select a size 51 respondents from the 16 unit trusts and fund managers
forming the population element. The study used both primary and secondary data. Primary data
was collected from respondents using a customized Likert framework questionnaire. Data was
analyzed using descriptive statistics, with the help of Statistical Package for Social Science
(SPSS) Version 17.
Based on the objectives, the study found that the amount of income, innovation, interest rates and
favorable conditions, general economic trends, political stability, stability of the institution,
market trends, interest rates charged and advancement of technology affected the company in
that order of reducing importance.
This study recommends that the unit trusts in Kenya should carry out investor education, on the
need and benefits of saving. This way, they will have enough money from their clients to invest
with and that the unit trusts should look for profitable means to invest the clients' money in order
for them to realize value for money | en |
