Sri Lanka Unit Trust Fund Comparison 2025🇱🇰

What this tool does

Quickly compare up to three Sri Lankan unit trust funds side-by-side to see which one best fits your goals. The tool aggregates and presents publicly available fund data so you can evaluate key factors like returns, fund size, unit holders, and price per unit (NAV/Unit) in one clear table.

Designed specifically for Sri Lanka’s unit trust market, the comparison table highlights the “best” value per criterion in light green to make winners obvious at a glance. You can pick any combination of funds (Money Market, Fixed Income/Income, Balanced, Equity, Gilt/Short-Term Treasury, and Shariah-compliant) and the tool will instantly re-calculate and re-highlight results.

Key benefits

• Side-by-side clarity: View three funds in columns with criteria in rows for easy scanning.
• Winner highlighting: Best values per criterion are automatically highlighted for quick insight.
• Sri Lanka specific: Optimized for local categories, terminology, and data formats.
• Zero spreadsheets: No manual copy-paste or formulas, selection instantly updates the results.

Who this is for

• Individual investors comparing Sri Lankan unit trust options before investing.
• Advisors/analysts preparing quick fund shortlists for clients or internal reviews.
• Students/enthusiasts learning how fund characteristics differ across categories.

How to use

1. Select up to three funds using the dropdowns at the top of the page.
2. The comparison table appears below with key statistics for each selected fund.
3. Look for green-highlighted cells to identify the best result per row (e.g., highest 5Y CAGR).
4. Use “Load Example” to see a sample selection or “Reset” to clear your choices.

Metrics you can compare (Sri Lanka context)

• Fund Size (NAV Total): Total net asset value of the fund at the latest month. Larger funds may signal investor confidence and liquidity, though size alone doesn’t guarantee performance.
• Unit Holders: Number of registered unit holders. Growth in holders can reflect rising popularity or distribution success.
• Unit Price (NAV/Unit): Price per unit; useful to track price level and movement over time within a fund.
• 5Y CAGR: Compound annual growth rate over the last five years; a long-term performance indicator (when available).
• YTD: Year-to-date return from January 1 to the latest available month.
• Latest Monthly Return: Return for the most recent month in the dataset.

Note: For percent-based metrics like 5Y CAGR, YTD, and monthly return, higher values are typically better; for other metrics, interpret based on your objective (e.g., more holders can indicate maturity and distribution reach).

Features at a glance

• Three-column selector: Choose up to three funds from a searchable dropdown for quick setup.
• Best value highlighting: The highest (or most favorable) value per criterion is highlighted in light green.
• Auto-updating results: The table updates immediately when you change a selection.
• Data source link: Clear attribution and link to public data source for transparency.

Data source and coverage

Data is processed from publicly available disclosures by Sri Lankan unit trust managers and the Unit Trust Association Sri Lanka (UTASL). Availability of some metrics (e.g., 5Y CAGR) may vary by fund and period.

• Source: Unit Trust Association Sri Lanka – Performance Reports
• Coverage: LKR-denominated funds across categories (Money Market, Fixed Income/Income, Balanced, Equity, Gilt/Short-Term Treasury, Shariah-compliant categories where applicable)

Always refer to fund factsheets/prospectuses and official disclosures for expense ratios, benchmark details, and fee structures when making decisions.

Practical examples

• Compare two Equity funds and one Balanced fund to see which shows stronger long-term CAGR and which has grown its unit holder base faster.
• Evaluate Money Market or Short-Term Treasury funds to understand relative fund sizes and the current pricing (NAV/Unit).
• Build a shortlist of candidates by category, then use the highlight cues to spot a performance leader.

Tips for meaningful comparisons

• Compare within the same category for “apples-to-apples” results (e.g., Equity vs Equity).
• Review both percentage metrics (CAGR, YTD, monthly return) and scale metrics (fund size, unit holders) for a balanced view.
• Revisit periodically, leaders can change with new monthly/quarterly data.

Frequently asked questions (FAQ)

Is a higher NAV/Unit better? Not necessarily. NAV/Unit reflects price level, not intrinsic value; use it alongside returns and risk metrics.

Why are some cells blank (-)? This means data wasn’t available for that metric or period in the public source.

Do you show fees or expense ratios? Not in this comparison table. Check each fund’s factsheet for fee information and ongoing charges.

Are returns net of fees? It depends on the source fund/managers’ reporting. Confirm via the fund’s factsheet.

Can I compare more than three funds? This tool is optimized for up to three side-by-side comparisons. For broader screening, use the Performance Overview tool below.

Frequently Asked Questions (FAQs)

How do I compare unit trust funds in Sri Lanka?

To compare unit trust funds in Sri Lanka, use our free comparison tool by selecting up to 3 funds from the dropdown menus. The tool displays key metrics side-by-side including:

• Fund Size (NAV Total): Total net asset value showing fund scale and liquidity
• Unit Holders: Number of registered investors indicating popularity
• Unit Price (NAV/Unit): Current price per unit for tracking value
• 5-Year CAGR: Compound annual growth rate showing long-term consistency
• Year-to-Date (YTD): Current year performance from January 1st
• Latest Monthly Return: Most recent month's performance

The calculator automatically compares:

• 200+ Sri Lankan unit trust funds across all categories
• Money Market, Fixed Income, Balanced, Equity, and Shariah-compliant funds
• Best values per metric are automatically highlighted in green for easy identification
• Data sourced from the Unit Trust Association Sri Lanka (UTASL) Performance Reports

Results show side-by-side comparison with interactive time-series charts for deeper analysis. Simply select your funds, and the comparison table updates instantly with detailed performance metrics. Use "Load Example" to see a sample comparison or "Reset" to clear selections.

What metrics should I look at when comparing unit trust funds?

When comparing unit trust funds in Sri Lanka, focus on these key metrics for comprehensive evaluation:

Long-term Performance Metrics:

1. 5-Year CAGR (Compound Annual Growth Rate) - Most important long-term indicator

   • Equity funds: Typically 10-15% in Sri Lanka
   • Balanced funds: 8-12%
   • Fixed Income funds: 6-10%
   • Money Market funds: 4-8%

2. Year-to-Date (YTD) Returns - Shows current year momentum and recent manager performance

Fund Scale & Stability Metrics: 3. Fund Size (NAV Total) - Larger funds (over 500M LKR) generally offer:

• Better liquidity for redemptions
• Economies of scale in management
• Greater stability during market stress

4. Unit Holders Count - Growing holder count indicates:
   • Rising investor confidence
   • Successful distribution network
   • Fund maturity and market acceptance

Pricing & Value Metrics: 5. Unit Price (NAV/Unit) - Useful for:

• Calculating investment units you can buy
• Tracking price movement over time
• Historical value comparison

6. Latest Monthly Return - Indicates:
   • Short-term volatility patterns
   • Recent performance trends
   • Manager's tactical decisions

Critical Comparison Rules:

• Compare funds within the same category (Equity vs Equity, Money Market vs Money Market)
• Check management company reputation (NDB Wealth, Softlogic Asset Management, Capital Trust are established)
• Review consistency: A fund with stable 10% returns beats one fluctuating between 5% and 18%
• Consider fund age: Funds over 5 years have more reliable CAGR data

Our tool highlights the best value per metric in green, making it easy to spot top performers across all criteria.

What is 5Y CAGR and why is it important for unit trust comparison?

5Y CAGR (5-Year Compound Annual Growth Rate) is the annualized return rate of a unit trust fund over the past five years, accounting for compounding effects. It's the single most important metric for comparing long-term fund performance.

Why 5Y CAGR is Critical:

1. Smooths Volatility - Five years captures multiple market cycles (bull and bear markets), filtering out short-term noise and showing true long-term capability.

2. Accounts for Compounding - Unlike simple average returns, CAGR shows the actual compounded growth rate your investment experienced, which is what matters for wealth building.

3. Fair Comparison - Enables apples-to-apples comparison across different fund categories, management companies, and investment strategies.

4. Predictive Value - Funds with consistently high 5Y CAGR often indicate superior fund management, better stock selection, and effective risk management.

Sri Lankan Unit Trust 5Y CAGR Benchmarks (2025):

Category	Typical 5Y CAGR Range	Top Performers
Equity Funds	10-15%	15-18%
Balanced Funds	8-12%	12-15%
Fixed Income	6-10%	10-12%
Money Market	4-8%	8-9%

How to Use 5Y CAGR:

• Look for funds consistently above their category average
• A Money Market fund with 7% CAGR is excellent (top quartile)
• An Equity fund with 10% CAGR is average (consider alternatives)
• Compare CAGR against Sri Lanka's inflation rate (typically 5-8%) to ensure real returns

Example Comparison:

• Fund A: 5Y CAGR of 14.2% (strong long-term performer)
• Fund B: 5Y CAGR of 9.8% (below equity category average)
• Fund C: 5Y CAGR of 16.5% (exceptional, investigate what's driving performance)

Our comparison tool highlights the fund with highest 5Y CAGR in green, making it instantly visible. Use this metric as your primary filter when shortlisting funds for investment.

Should I only compare unit trust funds from the same category?

Yes, for meaningful comparison, you should primarily compare unit trust funds within the same category because different categories serve fundamentally different investment objectives and risk profiles.

Sri Lankan Unit Trust Categories and Risk Profiles:

1. Money Market Funds

• Risk Level: Lowest (1/5)
• Expected Returns: 4-8% annually
• Objective: Capital preservation + modest returns
• Best For: Emergency funds, short-term goals (under 2 years)
• Typical Holdings: Treasury bills, fixed deposits, commercial paper

2. Fixed Income / Income Funds

• Risk Level: Low-Medium (2/5)
• Expected Returns: 6-10% annually
• Objective: Steady income + capital stability
• Best For: Conservative investors, retirement income
• Typical Holdings: Government bonds, corporate bonds, debentures

3. Balanced Funds

• Risk Level: Medium (3/5)
• Expected Returns: 8-12% annually
• Objective: Growth + income balance
• Best For: Moderate risk investors, 5-10 year goals
• Typical Holdings: 50-70% stocks, 30-50% bonds

4. Equity Funds

• Risk Level: High (4/5)
• Expected Returns: 10-15%+ annually
• Objective: Capital growth
• Best For: Aggressive investors, 10+ year goals
• Typical Holdings: 80-100% Colombo Stock Exchange (CSE) stocks

Why Same-Category Comparison Matters:

Comparing an Equity fund's 14% return against a Money Market fund's 6% return is misleading because:

• They target different investor needs
• Risk levels are incomparable
• Investment strategies are fundamentally different
• Time horizons differ significantly

When Cross-Category Comparison IS Useful:

1. Portfolio Allocation Decisions - Understanding risk-return tradeoffs across categories
2. Risk Assessment - Evaluating if higher risk justifies higher returns
3. Life Stage Changes - Considering category switches (e.g., Equity to Balanced as you near retirement)
4. Market Cycle Analysis - Comparing how different categories perform in various economic conditions

How Our Tool Helps:

The comparison table displays fund category and management company for each selected fund, making it easy to ensure you're comparing similar funds. Best practice: Compare 3 Equity funds together, or 3 Money Market funds together, rather than mixing categories.

Strategic Tip: Use category comparisons to build a diversified portfolio (e.g., 40% Equity, 30% Balanced, 30% Fixed Income) rather than comparing them as alternatives.

What does NAV/Unit mean and is a higher NAV/Unit better?

NAV/Unit (Net Asset Value per Unit) is the price of one unit of a unit trust fund, calculated by dividing the fund's total net assets (NAV Total) by the number of units outstanding.

Formula:

NAV/Unit = Total Fund Assets (NAV Total) ÷ Total Units Outstanding

Common Misconception - A Higher NAV/Unit Does NOT Mean a Better Fund

Many new investors mistakenly believe a fund with NAV/Unit of LKR 40 is "better" than one with LKR 15. This is incorrect. NAV/Unit is simply the price history since inception, not a measure of fund quality.

Example Showing Why Absolute NAV/Unit Doesn't Matter:

Fund	Current NAV/Unit	1-Year Growth	Which is Better?
Fund A	LKR 15.00	+12%	Better Performance
Fund B	LKR 40.00	+5%	Lower Performance

Despite Fund B having a higher NAV/Unit, Fund A delivered superior returns (12% vs 5%).

What Actually Matters:

1. NAV/Unit Growth Rate - How much has the price increased over time

   • Fund that grew from LKR 10 to LKR 15 in 2 years = 50% growth
   • Fund that grew from LKR 30 to LKR 33 in 2 years = 10% growth
   • First fund is clearly better despite lower absolute NAV/Unit

2. Returns (CAGR, YTD, Monthly) - Percentage growth is what builds wealth

   • 12% annual return on LKR 100,000 = LKR 112,000 (gain: LKR 12,000)
   • 5% annual return on LKR 100,000 = LKR 105,000 (gain: LKR 5,000)
   • NAV/Unit level is irrelevant to your actual gains

When NAV/Unit IS Useful:

1. Calculating Units You Can Buy:

   • Investment: LKR 100,000
   • NAV/Unit: LKR 12.50
   • Units Purchased: 100,000 ÷ 12.50 = 8,000 units

2. Tracking Your Investment Value:

   • Units Owned: 8,000
   • Current NAV/Unit: LKR 15.00
   • Current Value: 8,000 × 15.00 = LKR 120,000

3. Historical Price Movement:

   • Comparing NAV/Unit across different time periods for the same fund
   • Tracking price recovery after market downturns

Sri Lankan Context:

Most Sri Lankan unit trust funds start at NAV/Unit of LKR 10 at launch. Older funds (10+ years) naturally have higher NAV/Unit due to accumulated gains. This doesn't make them better or worse than newer funds.

Bottom Line: When using our comparison tool, ignore the absolute NAV/Unit values and focus on the return percentages (5Y CAGR, YTD, Monthly Return) highlighted in green. These show actual performance.

How do I interpret the green highlights in the fund comparison table?

The green highlights in our Sri Lanka unit trust fund comparison tool automatically identify the best-performing fund for each metric across your selected funds, making it easy to spot winners at a glance.

Highlighting Logic by Metric Type:

1. Performance Metrics (Higher = Better):

• 5Y CAGR: Fund with highest long-term compound growth
• YTD Return: Fund with best current year performance
• Latest Monthly Return: Fund with strongest recent month

Example: If comparing 3 funds with 5Y CAGR of 12%, 14%, and 11%, the 14% value gets highlighted.

2. Scale Metrics (Higher = Generally Better):

• Fund Size (NAV Total): Largest fund (indicates liquidity and stability)
• Unit Holders: Fund with most investors (indicates market confidence)

Why larger is typically better:

• Better liquidity for easy buying/selling
• Economies of scale reduce management costs
• More stable during market stress

3. Price Metric (Informational Only):

• NAV/Unit: Highest price is highlighted BUT remember - this doesn't indicate quality
• Focus on return percentages instead of absolute NAV/Unit

Special Cases:

• Multiple Highlights: If 2+ funds have identical best values, all are highlighted
• No Highlight: If data is missing (-) for all funds in a metric, nothing is highlighted
• Blank Cells (-): Indicates data not available from UTASL for that period

How to Use Highlights Strategically:

Identify All-Around Winners: A fund with green highlights across multiple metrics is likely a strong performer:

• Green in 5Y CAGR + YTD + Fund Size = Consistent long-term winner with stability
• Green in YTD + Monthly Return = Strong recent momentum (but check long-term too)
• Green in Fund Size + Unit Holders = Market leader with investor confidence

Example Scenario:

Fund A: 5Y CAGR, Fund Size, YTD (3 highlights - strong contender)
Fund B: Latest Monthly Return (1 highlight - recent spike, check if sustainable)
Fund C: Unit Holders (1 highlight - popular but check performance)

=> Fund A looks most promising with consistent performance + scale

Red Flags (No Green Highlights): If a fund has zero green highlights across all metrics, it's consistently underperforming your comparison set - consider dropping it from consideration.

Interactive Feature: Click on any metric row in the table to automatically scroll to the corresponding time-series chart below, where you can see historical trends beyond just the latest values.

Pro Tip: Don't obsess over every green highlight. Focus on the 5Y CAGR highlight first (most important), then verify with YTD for recent consistency, and finally check Fund Size for stability. A fund green in these three metrics is typically a solid choice.

Which unit trust category is best for conservative investors in Sri Lanka?

For conservative investors in Sri Lanka seeking capital preservation with modest returns and minimal volatility, Money Market funds and Short-Term Treasury funds are the best unit trust categories in 2025.

Money Market Funds - Best for Conservative Investors

Key Characteristics:

• Risk Level: Lowest (1/5) - minimal principal risk
• Expected Returns: 4-8% annually (typically 5-7%)
• Volatility: Very low - NAV rarely fluctuates more than 0.1% daily
• Liquidity: Excellent - redemptions processed within 3-5 business days
• Investment Horizon: 6 months to 3 years

What They Invest In:

• Government Treasury Bills (70-80% of portfolio) - virtually risk-free
• Fixed Deposits with licensed commercial banks (15-20%)
• Short-term corporate debt from AA/AAA-rated companies (5-10%)
• Commercial paper and call money

Best For:

• Emergency funds requiring quick access
• Short-term savings (wedding, down payment, education within 1-2 years)
• Parking funds temporarily while deciding on long-term investment
• Risk-averse investors prioritizing capital safety over high returns
• Retirees needing stable income with minimal risk

Comparison with Other Low-Risk Options:

Option	Return Range	Risk Level	Liquidity	Best For
Money Market Fund	5-7%	Very Low	3-5 days	Balanced safety + returns
Bank Fixed Deposit	4-6%	Very Low	Penalty on early withdrawal	If you don't need liquidity
Savings Account	1-3%	Lowest	Instant	Daily expenses only
Fixed Income Fund	6-10%	Low-Medium	5-7 days	If willing to accept slight risk

Fixed Income / Income Funds - Next Step Up

If you can tolerate slightly more risk for better returns:

• Expected Returns: 6-10% annually
• Risk Level: Low-Medium (2/5)
• Composition: Government bonds, corporate bonds, debentures
• Best For: Conservative investors with 3-5 year horizon

Top Sri Lankan Money Market Funds to Compare (2025):

When using our comparison tool, look for Money Market funds from these reputable managers:

• NDB Wealth Money Market Fund
• Softlogic Asset Management Money Market Fund
• Capital Trust Money Market Fund
• LOLC Finance Money Market Fund

What to Look For:

• 5Y CAGR: Target 6%+ (above inflation)
• Fund Size: Over 500M LKR (better liquidity)
• YTD Return: Consistent 5-7% range
• Monthly Volatility: Less than 0.5% fluctuation

Realistic Expectations for Conservative Investors:

Your priority ranking should be:

1. Capital Safety (99.9% - you won't lose principal)
2. Inflation Protection (earn above 5% to beat Sri Lankan inflation)
3. Liquidity (access within 3-5 days)
4. Returns (5-7% is realistic and good for low risk)

Warning: If a Money Market fund claims 10%+ returns, be suspicious - it may be taking excessive risk or misleading marketing. Stick to established funds with 5-7% track records.

Strategic Tip: Use our comparison tool to select 2-3 top Money Market funds, then split your investment across them for diversification even within the conservative category.

How often should I compare and review my unit trust fund choices?

For optimal unit trust investment management in Sri Lanka, adopt a quarterly review schedule (every 3 months) with annual deep dives and immediate reviews for red flags.

Quarterly Reviews (Every 3 Months) - 15-20 Minutes

What to Check:

1. YTD Return Performance

   • Use our comparison tool to check current year returns
   • Compare your fund against 2-3 similar funds in the same category
   • Verify your fund isn't trailing significantly (more than 2-3% behind leaders)

2. Latest Monthly Returns

   • Check last 3 months for unusual volatility
   • Equity funds: 5-10% monthly swings are normal
   • Money Market: More than 1% monthly swing is concerning

3. Fund Stability Indicators

   • Fund Size (NAV Total) - should be stable or growing
   • Unit Holders - declining holders (10%+ drop) signals investor exits

Quick Quarterly Checklist:

• YTD return within 3% of category leaders
• No dramatic monthly volatility (beyond category norms)
• Fund size stable or growing
• No changes in management company or fund strategy

Annual Reviews (Once Per Year) - 1-2 Hours

Comprehensive Analysis:

1. 5-Year CAGR Assessment

   • Compare against category benchmark
   • Evaluate long-term consistency
   • Example: Equity fund with 5Y CAGR under 10% should be questioned

2. Portfolio Allocation Review

   • Are you still properly diversified across categories?
   • Has your risk profile changed? (e.g., approaching retirement => shift to Fixed Income)
   • Rebalance if needed (e.g., if Equity grew from 40% to 60% of portfolio)

3. Fee and Expense Review

   • Check fund factsheet for Total Expense Ratio (TER)
   • Compare fees against similar funds
   • High fees (2%+) eat into returns significantly

4. Management Company Health

   • Any regulatory issues with fund manager?
   • Changes in fund management team?
   • Check SEC Sri Lanka disclosures

Immediate Review Required (Red Flags):

Act within 1 week if you notice:

• Sustained Underperformance - 3+ consecutive months trailing category average by 5%+
• Fund Size Shrinking - 20%+ decrease in NAV Total over 6 months (indicates investor exodus)
• Management Changes - New fund manager or management company restructuring
• Strategy Shift - Fund changing its investment mandate or risk profile
• Regulatory Action - SEC Sri Lanka warning or sanctions against fund manager

How Often to Switch Funds:

Conservative Approach (Recommended):

• Review quarterly, compare annually, switch only every 2-3 years unless red flags appear
• Switching too frequently incurs:
  • Exit fees (typically 1-3% if redeeming within first year)
  • Opportunity cost (missing potential recovery)
  • Tax implications on gains

Maximum Switching Frequency: No more than once per year per fund, unless crisis situation.

Using Our Comparison Tool for Reviews:

Quarterly (5 minutes):

1. Select your current fund + 2 competitors
2. Check YTD and latest monthly return highlights
3. If your fund has zero green highlights => deeper investigation needed

Annual (15 minutes):

1. Select your current fund + 3-4 alternatives
2. Compare 5Y CAGR (most important)
3. Analyze time-series charts for consistency
4. If consistently underperforming => consider switching

Example Review Schedule:

Month	Action	Time Required
January	Annual deep review + comparison	1-2 hours
April	Quarterly check	15 mins
July	Quarterly check	15 mins
October	Quarterly check	15 mins

Key Principle: Don't over-trade. Most successful unit trust investors in Sri Lanka review regularly but switch rarely. Market timing rarely works. Instead, focus on:

1. Choosing solid funds initially (using our tool)
2. Monitoring quarterly for major issues
3. Staying invested long-term (5+ years minimum)

Pro Tip: Set calendar reminders for quarterly reviews. Use the same comparison funds each quarter to track relative performance trends over time.

What is the difference between YTD and 5Y CAGR in unit trust fund comparison?

YTD (Year-to-Date) and 5Y CAGR are complementary performance metrics that measure unit trust fund returns over different timeframes, each serving distinct analytical purposes for investors.

YTD (Year-to-Date) Return - Short-Term Performance

Definition: Total return from January 1st of current year to the latest reporting month.

Timeframe: Current year only (up to 11 months maximum)

What It Shows:

• Recent fund performance and current momentum
• Fund manager's tactical decisions in current market conditions
• Impact of latest economic trends and policy changes
• Short-term volatility and market sentiment

Sri Lankan YTD Return Ranges (2025):

Fund Category	Typical YTD Range	Strong YTD	Weak YTD
Equity Funds	-5% to +20%	Above 15%	Below 5%
Balanced Funds	3% to 12%	Above 10%	Below 5%
Fixed Income	4% to 8%	Above 7%	Below 4%
Money Market	4% to 7%	Above 6%	Below 4%

Best Uses for YTD:

• Spotting recent winners and losers
• Assessing current market cycle positioning
• Tactical allocation decisions (e.g., overweighting strong YTD category)
• Quick performance screening

Limitations:

• Highly influenced by short-term market swings
• Can be misleading early in the year (Jan-Feb YTD is only 1-2 months)
• Doesn't indicate long-term fund quality

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5Y CAGR (5-Year Compound Annual Growth Rate) - Long-Term Performance

Definition: Annualized compound growth rate over the past 5 full years.

Timeframe: 60 months (5 complete years)

What It Shows:

• Long-term consistency and quality of fund management
• Ability to navigate full market cycles (bull + bear markets)
• True wealth-building capability over investment horizon
• Fund manager skill at stock selection and risk management

Sri Lankan 5Y CAGR Benchmarks (2025):

Fund Category	Typical 5Y CAGR	Top Quartile	Bottom Quartile
Equity Funds	10-15%	Above 15%	Below 8%
Balanced Funds	8-12%	Above 12%	Below 6%
Fixed Income	6-10%	Above 10%	Below 5%
Money Market	4-8%	Above 7%	Below 4%

Best Uses for 5Y CAGR:

• Primary metric for fund selection and comparison
• Evaluating fund manager track record
• Making strategic long-term investment decisions
• Filtering out lucky short-term winners from consistent performers

Advantages:

• Smooths out annual volatility and shows true capability
• Captures multiple economic cycles
• Accounts for compounding (what actually builds wealth)
• Most predictive of future long-term performance

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Using Both Metrics Together - Decision Framework

5Y CAGR	YTD	Interpretation	Action
Strong (High)	Strong (High)	Consistently excellent fund	Buy/Hold - Best choice
Strong (High)	Weak (Low)	Temporary dip in solid fund	Buy opportunity - investigate why
Weak (Low)	Strong (High)	Recent improvement or luck	Monitor closely - may be spike
Weak (Low)	Weak (Low)	Consistently poor performer	Avoid/Switch - find better fund

Practical Examples from Sri Lankan Market:

Example 1: All-Around Winner

• Fund A (Equity): 5Y CAGR = 14.2%, YTD = 16.8%
• Analysis: Excellent long-term track record + strong current momentum
• Decision: Top-tier fund, strong buy/hold

Example 2: Quality Fund in Temporary Dip

• Fund B (Balanced): 5Y CAGR = 11.5%, YTD = 4.2%
• Analysis: Great long-term but weak this year (possible market conditions or style out of favor)
• Decision: Research why YTD is weak. If no red flags, potential buying opportunity.

Example 3: Flash in the Pan

• Fund C (Equity): 5Y CAGR = 8.1%, YTD = 18.5%
• Analysis: Weak long-term but suddenly strong this year
• Decision: Likely riding current trend. High risk of reverting to mediocre performance. Monitor but don't rush in.

Example 4: Avoid

• Fund D (Fixed Income): 5Y CAGR = 4.8%, YTD = 3.1%
• Analysis: Consistently underperforms category benchmarks
• Decision: Switch to better Fixed Income fund. No reason to stay.

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When to Prioritize Each Metric:

Prioritize 5Y CAGR When:

• Initial fund selection for long-term investment (5+ years)
• Building retirement portfolio
• Evaluating fund manager quality
• Making strategic allocation decisions

Prioritize YTD When:

• Quarterly performance monitoring
• Tactical rebalancing decisions
• Assessing current market positioning
• Quick screening for red flags

How Our Comparison Tool Helps:

Our tool displays both metrics side-by-side with green highlighting, so you can instantly see:

• Which funds are long-term winners (5Y CAGR highlight)
• Which funds have current momentum (YTD highlight)
• Ideal funds highlighted in both columns

Bottom Line: Use 5Y CAGR as your primary filter for fund selection (most important), then verify with YTD to ensure recent performance hasn't collapsed. A fund strong in both metrics is your best bet for consistent wealth building in Sri Lankan unit trust market.

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Recent Updates & Changes

October 2025 Updates

• Enhanced Comparison Algorithm: Improved auto-highlighting logic to better identify top-performing funds across multiple metrics
• New Fund Additions: Added 8 newly launched unit trust funds from 4 management companies to the comparison database
• Data Refresh: Updated all fund data through September 2025 with latest NAV/Unit, returns, and holder counts
• Mobile Optimization: Enhanced mobile responsive design for better comparison table viewing on smartphones

September 2025 Updates

• Interactive Charts: Added full-screen chart view feature with zooming capabilities for detailed historical analysis
• Performance Filters: Improved fund search functionality with category and management company quick filters
• Data Accuracy: Corrected 5Y CAGR calculations for 12 funds based on updated UTASL performance reports

August 2025 Updates

• Extended Metrics: Added year-over-year comparison feature showing fund performance across multiple years
• Export Capability: Users can now export comparison results to PDF for offline analysis and record-keeping
• Loading Speed: Optimized API calls reducing fund data loading time by 40% for faster comparisons

July 2025 Updates

• Shariah Funds: Added dedicated category tag for Shariah-compliant unit trust funds for Islamic investors
• Volatility Indicators: Introduced volatility metrics showing standard deviation of monthly returns
• Historical Data: Extended time-series data back to 2018 for more comprehensive long-term analysis

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How to Choose the Right Unit Trust Funds - Complete Process

Selecting the best unit trust funds in Sri Lanka requires a systematic approach. Follow this 5-step process to make informed investment decisions using our comparison tool.

Step 1: Determine Your Risk Profile (3-5 minutes)

Before comparing any funds, clearly define your investment profile:

Risk Tolerance Assessment:

• Conservative: Cannot tolerate any loss of principal => Money Market / Short-Term Treasury
• Moderate: Can accept 5-10% temporary drawdowns for better returns => Fixed Income / Balanced
• Aggressive: Can handle 15-30% volatility for maximum growth => Equity

Investment Timeline:

• Short-term (6 months - 2 years): Money Market funds
• Medium-term (3-5 years): Fixed Income or Balanced funds
• Long-term (5+ years): Balanced or Equity funds

Investment Goal:

• Capital preservation => Money Market
• Steady income => Fixed Income
• Balanced growth => Balanced funds
• Maximum growth => Equity funds

Step 2: Shortlist Funds by Category (5-10 minutes)

Action: Use our dropdown menus to filter funds by your target category.

For Conservative Investors (Money Market):

• Target 5-8 Money Market funds from reputable managers
• Look for funds over 500M LKR in size
• Prioritize established management companies (NDB Wealth, Softlogic, Capital Trust)

For Moderate Investors (Fixed Income/Balanced):

• Shortlist 6-10 funds in your chosen category
• Mix of large funds (over 1B LKR) and mid-sized funds
• Consider both Income and Balanced categories for comparison

For Aggressive Investors (Equity):

• Identify 8-12 Equity funds across different managers
• Include top 5 funds by size + 3-5 smaller funds with strong returns
• Consider specialized equity funds (e.g., dividend-focused vs growth-focused)

Step 3: Compare Key Metrics Using Our Tool (10-15 minutes)

Round 1 Comparison: Groups of 3

1. Select first 3 funds from your shortlist
2. Focus on 5Y CAGR (most important) - note which fund has green highlight
3. Check YTD for recent consistency
4. Record top 2 performers from this batch

Round 2 Comparison: Next 3

1. Select next 3 funds from shortlist
2. Repeat metric analysis
3. Record top 2 performers

Round 3 Comparison: Top Performers Head-to-Head

1. Select the top 2-3 funds from Rounds 1 and 2
2. Deep dive into all metrics:
   • 5Y CAGR: Should be top quartile of category
   • YTD: Consistent with long-term performance
   • Fund Size: Larger is generally safer (over 500M LKR)
   • Unit Holders: Growing or stable indicates confidence

What to Look For:

• Multiple green highlights across different metrics
• 5Y CAGR above category average
• Consistent YTD performance (not just one lucky year)
• Fund size over 500M LKR (better liquidity)

Step 4: Review Historical Performance Charts (10 minutes)

Action: Click on metric rows to scroll to time-series charts.

Chart Analysis Checklist:

• 5Y CAGR Chart: Look for upward trending line (consistent growth)
• YTD Chart: Check for steady progression (avoid erratic jumps)
• NAV/Unit Chart: Should show clear upward trajectory over 5 years
• Monthly Return Chart: Assess volatility - how much does it fluctuate?

Red Flags in Charts:

• Sudden dramatic drops that never recover
• Long flat periods (2+ years of zero growth)
• Extreme volatility (wild swings) compared to category peers

Green Flags in Charts:

• Steady upward trend with minor dips
• Quick recovery from market downturns
• Outperformance during bull markets + resilience during bear markets

Step 5: Make Your Final Selection (5-10 minutes)

Decision Framework:

If comparing 3 finalists:

1. All 3 are strong (multiple green highlights each) => Diversify across all 3 (split 33% each)
2. 2 are strong, 1 is weak => Split between top 2 (50% each)
3. 1 clear winner => Allocate 60-70% to winner + 30-40% to second choice (diversification)

Quality Thresholds by Category:

Metric	Money Market	Fixed Income	Balanced	Equity
Minimum 5Y CAGR	5%	7%	9%	11%
Minimum YTD	4%	5%	6%	8%
Minimum Fund Size	300M LKR	500M LKR	500M LKR	1B LKR

Final Checks Before Investing:

• Fund factsheet reviewed (download from management company website)
• Total Expense Ratio (TER) is competitive (under 2% for most categories)
• No recent regulatory issues with management company (check SEC Sri Lanka)
• Entry/exit fees understood (typically 0-3%)
• Minimum investment amount is acceptable (usually 1,000-10,000 LKR)

Where to Invest:

• Contact fund management company directly (phone/email on their website)
• Visit management company branch with NIC and bank details
• Some funds available through online platforms (banks, brokers)

Total Timeline for Complete Process: 30-45 minutes

Pro Tips:

• Don't rush the comparison - take time to analyze charts
• Revisit your selections quarterly using our tool
• Document your fund choices and reasons (helps with future reviews)
• Start with smaller amount if you're new to unit trusts (10,000-50,000 LKR)

Common Mistakes to Avoid:

• Choosing based on NAV/Unit level (price doesn't indicate quality)
• Picking funds with one spectacular year but weak long-term CAGR
• Ignoring fund size (very small funds under 100M LKR can have liquidity issues)
• Not considering management company reputation
• Comparing across different categories (Equity vs Money Market is meaningless)

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Tips for Effective Unit Trust Fund Comparison

1. Category Matching Tips

DO:

• Compare 3 Equity funds side-by-side for apples-to-apples results
• Compare Money Market funds against each other
• Use category benchmarks: Equity should beat 10%, Money Market should beat 5%

DON'T:

• Compare Equity fund's 15% return against Money Market's 6% (different risk profiles)
• Expect Money Market fund to match Equity returns (different objectives)
• Compare funds from different geographies (Sri Lankan vs Indian funds)

Why It Matters: Different categories have different risk-return profiles. An Equity fund's 12% might be poor (below category average), while a Money Market fund's 6% might be excellent (above category average). Only same-category comparison reveals true relative performance.

2. Performance Analysis Tips

Focus on 5Y CAGR First:

• Most predictive metric for long-term success
• Minimum acceptable: 11% for Equity, 9% for Balanced, 7% for Fixed Income, 5% for Money Market
• Funds consistently above category average are managed by skilled teams

Verify with YTD:

• Strong 5Y CAGR + Strong YTD = Best combination
• Strong 5Y CAGR + Weak YTD = Investigate (temporary dip or deteriorating quality?)
• Weak 5Y CAGR + Strong YTD = Beware (recent spike, not sustainable)

Check Consistency via Charts:

• Click metric rows to view time-series charts
• Look for steady upward trend, not erratic jumps
• Funds that recover quickly from dips show good management

Use Multiple Metrics:

• Don't rely on single metric - a fund might have great CAGR but shrinking size (investors leaving)
• Best funds have green highlights across 3+ different metrics

3. Risk Assessment Tips

Volatility Indicators:

• Check monthly return charts - wide swings indicate higher risk
• Equity funds: 10-20% swings are normal
• Money Market: More than 2% swing is concerning

Fund Size as Safety Proxy:

• Larger funds (1B+ LKR) are generally more stable
• Small funds (under 100M LKR) can face liquidity issues
• Growing fund size indicates investor confidence

Management Company Reputation:

• Stick with established companies: NDB Wealth, Softlogic Asset Management, Capital Trust, LOLC Finance
• Check for SEC Sri Lanka warnings or sanctions (red flag)
• Longer operating history (10+ years) indicates stability

4. Common Mistakes to Avoid

Chasing Last Year's Winner:

• Fund with spectacular 25% YTD but weak 5Y CAGR likely had one lucky year
• Often reverts to mean in following years
• Focus on long-term consistency over short-term spikes

Ignoring Fund Size:

• Very small funds (under 100M LKR) may struggle with:
  • Liquidity problems (hard to redeem large amounts)
  • Higher expense ratios (lack of scale)
  • Closure risk (fund may shut down if too small)
• Minimum recommended: 300M LKR for Money Market, 500M LKR for other categories

Overweighting NAV/Unit:

• NAV/Unit level (LKR 15 vs 40) doesn't indicate quality
• Focus on return percentages (5Y CAGR, YTD) not absolute price
• Our tool highlights returns, not NAV/Unit, for good reason

Comparing Only 2 Funds:

• Always compare 3 funds when possible
• Provides context - is Fund A beating Fund B because A is good, or because B is terrible?
• Third fund gives benchmark reference

Not Reading Fund Factsheets:

• Always download factsheet from management company website
• Check Total Expense Ratio (TER) - high fees (2%+) eat returns
• Verify investment strategy matches your expectations

5. Optimization Strategies

Quarterly Reviews (Don't Over-trade):

• Review holdings every 3 months using our tool
• Only switch if fund consistently underperforms (3+ quarters trailing)
• Frequent switching incurs fees and rarely improves returns

Diversification Within Category:

• Don't put all money in one fund, even if it's the best
• Split across 2-3 top funds (e.g., 40% + 35% + 25%)
• Reduces management-specific risk

Rebalancing Strategy:

• If one fund grows to over 50% of your unit trust portfolio, rebalance
• Trim winners, add to laggards (if laggards still meet quality threshold)
• Annual rebalancing is sufficient for most investors

Tax Efficiency:

• Unit trust returns are tax-free for most individual investors in Sri Lanka
• Check latest IRD rules if investing large sums (over 10M LKR)
• Keep records of purchases for capital gains tracking

Use Time-Series Charts:

• Don't just look at latest numbers - check 5-year trends
• Funds with upward trending charts show consistency
• Sudden dramatic changes (up or down) warrant investigation

6. Strategic Fund Selection

Build a Diversified Unit Trust Portfolio:

• Conservative allocation: 60% Money Market, 30% Fixed Income, 10% Balanced
• Moderate allocation: 30% Money Market, 30% Fixed Income, 40% Balanced
• Aggressive allocation: 10% Money Market, 20% Fixed Income, 30% Balanced, 40% Equity

Age-Based Strategy:

• Age 20-35: Heavy Equity (50-70%) for growth
• Age 36-50: Balanced approach (40% Equity, 40% Balanced, 20% Fixed Income)
• Age 51-65: Conservative shift (60% Fixed Income, 30% Balanced, 10% Equity)
• Age 65+: Capital preservation (70% Money Market, 30% Fixed Income)

Goal-Based Strategy:

• Emergency Fund (6-12 months expenses): 100% Money Market
• House down payment (2-5 years): 70% Fixed Income, 30% Balanced
• Retirement (10+ years): 50% Equity, 30% Balanced, 20% Fixed Income
• Child's education (5-10 years): 40% Balanced, 40% Fixed Income, 20% Equity

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Comparison Examples from Sri Lankan Market

Example 1: Comparing 3 Equity Funds

Scenario: Aggressive investor (age 32) wants to invest LKR 500,000 for retirement in 25 years.

Selected Funds:

• Fund A (Large Equity Fund): 5Y CAGR 13.2%, YTD 14.8%, Size 3.2B LKR
• Fund B (Mid-cap Equity Fund): 5Y CAGR 15.1%, YTD 12.3%, Size 850M LKR
• Fund C (Dividend Equity Fund): 5Y CAGR 11.4%, YTD 16.2%, Size 1.8B LKR

Analysis:

• Fund B has best 5Y CAGR (15.1%) - highlighted green
• Fund C has best YTD (16.2%) but weaker long-term CAGR
• Fund A is middle performer but largest size (best liquidity)

Decision:

• Primary choice: Fund B (strong long-term track record despite smaller size)
• Secondary choice: Fund A (solid performer + highest liquidity + stability)
• Allocation: 60% Fund B (LKR 300K) + 40% Fund A (LKR 200K)
• Reasoning: Prioritize long-term performance (5Y CAGR) for 25-year horizon, but diversify with stable large fund

Example 2: Money Market vs Short-Term Treasury Comparison

Scenario: Conservative investor needs safe parking for LKR 1,000,000 emergency fund with quick access.

Selected Funds:

• Fund X (Money Market): 5Y CAGR 6.2%, YTD 5.8%, Size 2.1B LKR, Unit Holders 15,200
• Fund Y (Money Market): 5Y CAGR 5.8%, YTD 6.1%, Size 950M LKR, Unit Holders 8,400
• Fund Z (Short-Term Treasury): 5Y CAGR 6.4%, YTD 5.9%, Size 1.5B LKR, Unit Holders 11,000

Analysis:

• Fund Z has best 5Y CAGR (6.4%) and strong size
• Fund X has best YTD and largest size (best liquidity)
• All three are within acceptable 5-7% range for conservative funds

Decision:

• Split between Fund Z (50%, LKR 500K) and Fund X (50%, LKR 500K)
• Reasoning: Both excellent low-risk options, splitting provides diversification even in conservative category
• Fund X offers best liquidity (largest size) for emergency access
• Fund Z offers slightly better long-term returns

Example 3: Building a Balanced Portfolio

Scenario: Moderate-risk investor (age 45) wants to invest LKR 2,000,000 for child's university education in 8 years.

Step 1: Determine allocation based on 8-year timeline

• 40% Balanced Funds (LKR 800K)
• 40% Fixed Income (LKR 800K)
• 20% Money Market (LKR 400K)

Step 2: Select best fund in each category using comparison tool

Balanced Funds Comparison:

• Selected: Fund with 5Y CAGR 10.2%, YTD 9.8%, Size 1.5B LKR => Allocate LKR 800K

Fixed Income Comparison:

• Selected top 2: Fund with 8.1% CAGR (LKR 500K) + Fund with 7.8% CAGR (LKR 300K) => Total LKR 800K

Money Market Comparison:

• Selected: Fund with 6.3% CAGR, largest size 2.5B LKR => Allocate LKR 400K

Final Portfolio:

• Total: LKR 2,000,000 across 4 funds in 3 categories
• Expected blended return: ~8.5% annually
• Risk level: Moderate (balanced approach matches 8-year timeline)

Review Schedule:

• Quarterly checks using comparison tool
• Annual rebalancing to maintain 40/40/20 allocation
• At year 6 (2 years before goal), shift 50% from Balanced to Money Market for capital preservation

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Related tools

• Sri Lanka Unit Trust Fund Performance Overview – explore trends, categories, and companies with charts: Sri Lanka Unit Trust Fund Performance Overview
• Investment Return Calculator – analyze return percentages and CAGR for any investment: Investment Return Calculator

Important note

This tool is for research and education in a Sri Lankan context. It does not constitute financial advice. Past performance does not guarantee future results. Always read the fund prospectus/factsheet and consult a licensed advisor before investing.

Notes

Data reflects public disclosures by Sri Lankan unit trust managers. Always consult official documents and a licensed advisor before investing. Past performance is not indicative of future results.