Our Products Mutual Funds

A fund is a collective investment pool made by many investors with a common investment objective. This pool of money is used to purchase a portfolio of financial securities (T- bills, Fixed deposits, Commercial papers, and Trust certificates). In exchange for the money invested, the fund issues units to each investor, who are then known as unit holders.

A fund is set up by a Trust Deed and is an independent legal entity. It has its own financial accounts and files tax returns. The Trust is administered by its Trustee, which is a licensed commercial bank.

• Download the Genie App from the Google Play Store or App Store
• Click on "Mutual Funds" and follow the instructions to register
• Once you have invested in Mutual Funds it will take 3 working days for your account to be verified and for the units to be created

• NIC (both sides)
• Recent picture of yourself – a selfie would do
• Proof of Residency (Water bill/ Electricity Bill issued within the last 3 months) – this is only required if the address provided in the application differs from the address stated in your NIC

Currently you can use the following to pay for Mutual Funds units:

• Dialog Finance Savings Account
• eZ Cash

Softlogic Invest Money Market Fund

• Management Fee - 0.45%
• Trustee Fee - 0.15%
• Custodian Fee - Rs. 15,000/- per month
• Registrar Fee - Rs. 20,000/- per month
• Exit Fee - N/A

All above fees are charged to the fund and NOT from individual unit holders. The fund yield reflects the net return after of all the above-mentioned charges

Open-ended funds are funds where investors can enter and exit the fund at any time. There is no restriction on the number of units to be issued by the fund and the fund has no maturity.

Unlike other investment tools, Mutual Funds were introduced so that people could start investing with small amounts such as Rs 5,000, since usually this is not the case. Also, pooling your money with other investors can offer these advantages:

• Diversification: A single fund can hold more securities than you as an individual or a company could buy with limited resources.
• Professional management: A professional fund manager will manage the fund and continuously monitor its investments.
• Convenience: Fund units can be bought and sold on any business day.

A Money Market Fund is ideal for investors looking for short-term gains as the fund holding period is typically 12 months. It also provides higher liquidity and the ability for investors to enter and exit anytime without a fee. Money Market funds primarily invest on short-term securities such as Repos, T- bills, Fixed deposits, Commercial papers, and Trust certificates.

The money market fund will predominantly invest in short-term (12 months or less) fixed income securities such as:

• Government bonds
• Treasury bills
• Bankers’ acceptances
• Commercial papers
• Securitized trust certificates
• Fixed deposits
• Repos and reverse repos

Softlogic Invest - Hatton National Bank PLC

These are the fees charged by the Trustee and Custodian to maintain the security of the underlying assets and the securities that are in the funds’ name. This fee will be charged to the fund and not to individual investors.

Funds are valued every business day by calculating its NAV (Net Asset Value) per unit. This is calculated by adding up the current value of all shares, debentures, trust certificates, repos, other securities and cash in its portfolio. After subtracting out certain expenses of running the fund (e.g. Management fee, Trustee fee, Custodian fee and other operating expenses), the final figure is divided by the fund’s total number of units in issue to arrive at the NAV per fund unit.

For example, assume you will get 50 units at the price of Rs. 100 per unit for a total investment of Rs. 5,000. If the price appreciates after 6 weeks to Rs. 110, this means that the market value of your total investment has increased from Rs. 5,000 to Rs. 5,500.

• Citizens of Sri Lanka who are resident within Sri Lanka
• Companies, corporations or institutions incorporated or established within Sri Lanka
• Approved provident funds and approved contributory pension schemes registered/ incorporated/ established in Sri Lanka
• Non-residents: Persons who are not residents of Sri Lanka, companies with limited liability or bodies corporate established/ incorporated outside Sri Lanka

An investor’s investment value in a fund is determined based on the Unit Price as at date. Unit prices are variable and subject to change, driven by the risks associated with the underlying instrument the fund invests in. This is mainly applicable for Equity Mutual Funds where Unit Prices reflect the change in share prices. But this can also be applicable for Mutual Funds invested in fixed income securities, which are exposed to risks such as default.

Once the investment is made it will take 3 business days for the units to be created and reflected in your portfolio.

• Select the “Withdrawal” option
• Enter your bank account details
• Click submit
• It takes 3 business days to credit your account with the amount requested to be withdrawn.

Yes. The available amount to withdraw is shown on the Genie App Mutual Funds dashboard and in the “Withdraw” page.

• Securities and exchange commission (SEC)
• Trustee/Custodian bank (HNB)
• Fund auditors
• Fund managers governed by the CFA institute code of ethics and standards of professional conduct
• Internal compliance and risk management team