Unit trusts are one of the most accessible ways for ordinary Ghanaians to grow their money. You do not need millions of cedis or a deep understanding of the stock market. Here is a simple explanation of what unit trusts are, how they work, and what you should know before investing.
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What Is a Unit Trust?
A unit trust is a type of investment where many people pool their money together to invest in a wide range of assets. Instead of trying to pick individual stocks or bonds on your own, you join a professionally managed fund alongside hundreds or thousands of other investors .
Think of it like a group contribution. If you and 99 other people each contribute GHS 1,000, the fund now has GHS 100,000 to invest. That money can be spread across government bonds, corporate securities, money market instruments, and more. You could not achieve that level of diversification with GHS 1,000 on your own .
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When you invest, you receive units that represent your ownership share. If the total fund is worth GHS 100,000 and you invested GHS 1,000, you own 1% of the fund. As the fund grows in value, so does your share.
How Unit Trusts Work in Ghana
The Pooling Process
Unit trusts pool money from many investors and invest it collectively. The fund manager then allocates the assets according to a specific investment strategy. This is valuable because most people do not have the time or expertise to research investments themselves .
Who Manages the Fund?
A licensed fund manager oversees all investment decisions. Their job is to research opportunities, assess risks, and allocate the fund’s assets. Fund managers are regulated by the Securities and Exchange Commission (SEC) in Ghana, which sets standards for how funds must be managed, reported, and audited .
How You Earn Returns
Your returns come from two sources :
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Income – interest from bonds or dividends from stocks
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Capital appreciation – when the value of the assets in the fund increases over time
These returns are reflected in the fund’s Net Asset Value (NAV) , which is the price per unit. When NAV goes up, your investment is worth more. When it goes down, your investment is worth less .
The value of a unit is calculated as:
Value of a unit = Total Market Value of the Fund ÷ Number of Units in Circulation
Types of Unit Trusts in Ghana
Unit trusts are categorised according to their investment objectives. Here are the common types available in Ghana
| Type of Fund | What It Invests In | Risk Level | Best For |
|---|---|---|---|
| Money Market Funds | Short-term debt securities like treasury bills and corporate notes | Low | Short-term goals, emergency funds |
| Fixed Income Funds | Bonds, debentures, and mortgages that pay regular interest | Low to Medium | Regular income, medium-term goals |
| Growth or Equity Funds | Common shares of local or foreign companies | Medium to High | Long-term wealth building |
| Balanced Funds | A mix of equities, debt securities, and money market instruments | Medium | Balanced growth and income |
| Global and Foreign Funds | Foreign securities (subject to SEC limits) | Varies | International diversification |
| Specialty Funds | Specific industries or geographical areas | Higher | Targeted exposure |
Benefits of Investing in Unit Trusts
There are several advantages to investing in unit trusts :
Diversification – When you buy a unit, you buy an interest in a portfolio of dozens of different securities. This reduces the risk of investing in any single asset.
Affordability – Many funds allow you to start with a relatively small amount. In Ghana, you can begin investing with as little as GH¢20 through some providers.
Professional Management – Your money is managed by professionals who have the skills and resources to research investment opportunities.
Liquidity – Shares of open-ended unit trusts can be redeemed at any time at the Net Asset Value Per Unit.
Flexibility – Many fund management companies allow you to switch between different funds within their family at little or no charge.
Tax Advantages – Under current tax laws, Collective Investment Schemes do not pay taxes on their incomes, and investors do not pay taxes on income received from these schemes.
How to Get Started
Starting is simpler than most people think. Here is what you need to do :
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Choose a licensed fund manager – Look for companies regulated by the SEC
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Select a fund that matches your goals – Money market for short-term needs, balanced for medium-term, equity for long-term
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Fill out an application form – Provide your identification documents
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Make your initial investment – Minimums range from GH¢20 to GH¢100 depending on the provider
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Set up regular contributions – Many investors set up automatic monthly contributions to build the habit
What to Look For Before Investing
Before choosing a fund, consider these factors :
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Fund type – Does it match your goal?
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Track record – How has the fund performed over the past three to five years?
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Fees – Management fees, entry fees, and exit fees can vary significantly
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Fund manager reputation – Is the manager licensed, experienced, and transparent?
Regulatory Protection in Ghana
The SEC regulates unit trusts in Ghana through :
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Licensing requirements – Every scheme manager, fund manager, custodian, and trustee must be licensed by the SEC
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Prospectus requirements – Every scheme must file a prospectus with the SEC before selling securities to the public
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Regulations and fund operations – Ongoing oversight of how funds are managed and reported
In February 2026, the SEC issued a directive limiting foreign securities exposure for Collective Investment Schemes. Domestic funds cannot invest more than 20% of their assets in foreign securities, while internationally-focused funds must retain at least 30% of their assets locally .
Quick Facts
| Topic | Details |
|---|---|
| Minimum Investment | From GH¢20 (NIMED Capital) to GH¢100 (Fidelity) |
| Regulator | Securities and Exchange Commission (SEC) |
| Types of Funds | Money Market, Fixed Income, Equity, Balanced, Global, Specialty |
| Returns From | Income (interest/dividends) and Capital Appreciation |
| Tax Treatment | No tax on fund income; no tax on investor income from schemes |
| Foreign Exposure Limit | 20% for domestic funds; 30% local retention for international funds |
Frequently Asked Questions
1. What is a unit trust?
A unit trust is an investment vehicle that pools money from many investors to invest in a diversified portfolio of securities. It is managed by a professional fund manager and regulated by the SEC .
2. How do unit trusts work in Ghana?
A licensed fund manager pools money from investors and invests it in securities like government bonds, corporate bonds, and stocks. Investors receive units representing their share of the fund, and the value of those units changes based on the fund’s performance .
3. What is the minimum amount to invest in a unit trust in Ghana?
Minimums vary by provider. NIMED Capital allows you to start with GH¢20 for its Fixed Income Fund and GH¢50 for its Lifetime Unit Trust . Fidelity requires GH¢100 for its Money Market Trust . Stanbic allows GH¢20 for both its Cash Trust and Income Fund Trust .
4. How do I earn money from a unit trust?
You earn from two sources: income (interest from bonds or dividends from stocks) and capital appreciation (when the value of the fund’s assets increases). These are reflected in the Net Asset Value (NAV) per unit .
5. Are unit trusts safe?
Unit trusts are not risk-free, but they are generally considered safer than investing in individual stocks because they are diversified. The risk level depends on the type of fund—money market funds are low-risk, while equity funds carry higher risk .
6. How are unit trusts regulated in Ghana?
The Securities and Exchange Commission (SEC) regulates unit trusts. All fund managers, custodians, and trustees must be licensed by the SEC. Every scheme must file a prospectus with the SEC before selling securities to the public .
7. Do I pay tax on unit trust returns in Ghana?
Under current tax laws, Collective Investment Schemes do not pay taxes on their incomes, and investors do not pay taxes on income received from these schemes.
8. Can I withdraw my money from a unit trust at any time?
Yes. Unit trusts are open-ended, meaning you can redeem your units at any time at the Net Asset Value per unit. However, some funds may charge a redemption fee if you withdraw within a certain period .
9. What is the difference between a unit trust and a mutual fund?
In Ghana, the terms are often used interchangeably. Both are types of collective investment schemes. The main difference is legal structure—unit trusts are governed by a trust deed, while mutual funds are governed by a company structure .
10. How do I choose the right unit trust?
Consider your financial goals, time horizon, and risk tolerance. Money market funds suit short-term goals, balanced funds suit medium-term goals, and equity funds suit long-term wealth building. Always check the fund’s track record, fees, and the reputation of the fund manager
Source: Accra Street JournalÂ
Last Updated on September 16, 2026 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
