Sri Lanka’s unit trust industry sees widening investor base

By Nishel Fernando

Sri Lanka’s unit trust industry has demonstrated a significant expansion in its investor base over the past year, a positive indicator for financial inclusion and capital market depth. 

As of June 30, 2025, the number of unitholders had grown to 126,837, representing a notable 17.6 percent increase from the 107,876 recorded a year earlier, signaling growing investor confidence and market participation, according to the Unit Trust Association of Sri Lanka.

The industry’s total net asset value (NAV) slightly rose to Rs. 609.57 billion by the end of June 2025, up from Rs. 571.46 billion in June 2024. 

The continued influx of new investors indicates a sustained and growing interest in mutual fund investments as a viable savings and wealth-creation tool.

The bulk of the industry’s assets remains concentrated in a few large funds, primarily in the money market and income categories. As of June 2025, the largest funds by net asset value were: NDB Wealth Money Fund (Rs. 183.80 billion), CAL Fixed Income Opportunities Fund (Rs. Rs. 75.50 billion), First Capital Money Market Fund (Rs. 64.59 billion), CAL Investment Grade Fund (Rs.  61.53 billion) and JB Vantage Money Market Fund (Rs. 23.49 billion).

In terms of investor numbers, money market and equity funds dominated, showcasing their appeal to a broad range of retail investors. The funds with the highest number of unitholders as of June 2025 included NDB Wealth Money Fund (24,712 unitholders), Softlogic Money Market Fund (19,607 unitholders), National Equity Fund ( 12,053 unitholders), NDB Wealth Money Plus Fund (10,331 unitholders), and CAL Investment Grade Fund (6,235 unitholders).

A comparison of year-to-date (YTD) performance reveals a moderation in returns for several leading funds in 2025 compared to the same period in 2024.

The NDB Wealth Money Fund, the largest fund by assets and unitholders, posted a YTD return of 3.94 percent as of June 2025, an increase from the 6.06 percent it recorded by June 2024.

In contrast, the CAL Fixed Income Opportunities Fund saw its YTD performance decline to 4.81 percent in June 2025 from 6.93 percent in the previous year. Similarly, the JB Vantage Money Market Fund recorded a YTD return of 4.20 percent in June 2025, down from 6.51 percent in June 2024.

For context, the Colombo Stock Exchange’s All Share Index (ASPI) showed a YTD performance of 13.06 percent as of June 2025, compared to 13.99 percent for the same period in 2024.

*** This article was updated to correct certain figures from the print version. The error is regretted***