Unit Trust industry navigates market volatility with resilience

Friday, 29 May 2026 06:20 - - {{hitsCtrl.values.hits}}

The Unit Trust Association of Sri Lanka (UTASL) yesterday said the industry held steady during April 2026, amidst ongoing global geopolitical and economic uncertainties, and the resulting market volatility seen in the past few months.

The industry reported assets under management (AUM) of Rs. 589 billion, which is flat compared to March and down just 2.3% year-over-year. These assets are held across a diverse portfolio of 87 funds managed by 16 fund management companies.

Equity-related funds continued to see strong fund flows, with funds up 91.7% year-over-year to Rs. 61 Bn, and up 9.0% since March. Fixed income funds declined by ~10.0% year-over-year and have remained flat since March.

Despite market uncertainties, the number of unit trust investors remained largely unchanged at 154,250 since March, and up 26.6% year-over-year. During April, the industry added 3,357 new unit holders, mainly to equity-related funds. This is a 56.6% growth over last year, and a 12.1% increase over March.

Commenting on the April industry results, UTASL Vice President and First Capital Asset Management CEO Kavin Karunamoorthy said: “Over the past few months, unit trusts have offered investors a more balanced approach to investing, enabling them to withstand the recent market volatilities. Additionally, flows into equity-related funds held steady during the month, including medium to longer-term investment options, confirming that investors continue to focus on capital preservation and long-term wealth creation.”

He added: “We encourage investors to remain focused on their long-term financial goals and not be deterred by short-term volatility arising from either global developments or domestic market events. Unit trusts are structured to help investors navigate such volatility through diversification, supported by professional fund managers. To this end, we continue to create greater awareness of industry products, including providing access to well-managed and innovative investment solutions to investors.”