Unit Trust industry surpasses Rs. 587bn as investor appetite shifts to growth

Sri Lanka’s unit trust industry ended 2025 on a strong note, with assets under management (AUM) rising 7.8 percent year-on-year to Rs. 587 billion, according to the Unit Trust Association of Sri Lanka (UTASL). During the year, AUM touched a high of Rs. 613 billion, signalling sustained investor interest in professionally managed funds amid a post-crisis recovery.

While fixed-income funds still account for the largest portion of AUM, equity-related funds led inflows, growing by Rs. 30 billion compared with just Rs. 2 billion for fixed-income products. Open-ended growth equity funds saw a striking 79 percent jump, reflecting a clear shift in investor sentiment from short-term capital preservation to long-term market-linked growth. Balanced and sector-specific funds also attracted strong inflows, while money-market funds saw declining interest.

The industry added 30,485 new unit holders during the year, pushing total numbers to 143,976 ,  a 25.4 percent increase from 2024. This expansion not only reflects a growing investor base but also a gradual diversification of investor profiles, the UTASL noted.

Secretary of UTASL and CEO of Senfin Asset Management Jeevan Sukumaran said, “The steady growth of the unit trust industry in 2025 is a strong indicator of rising investor confidence in well-regulated, professionally managed investment products. Beyond fund flows, we are seeing encouraging progress in broadening the investor base and shifting mindsets toward long-term investing.”

Looking ahead, UTASL plans to prioritise investor education, regulatory engagement, and industry collaboration to enhance transparency and accessibility. 

“These efforts are key to positioning unit trusts as a mainstream investment solution, supporting both individual financial goals and the broader development of Sri Lanka’s capital markets,” Sukumaran added.

The UTASL, representing 16 licensed fund management companies regulated by the SEC, continues to promote professionalism, transparency, and long-term investing, aiming to make unit trusts a core component of Sri Lankans’ financial planning.