Jan 17, 2007 (LBO) – Investors in mutual funds with an equity component have managed to beat raging inflation last year, with Sri Lanka’s youngest fund, the Ceylon Index Fund showing the highest returns, its managers said. “We will have a marketing campaign in English, Sinhala and Tamil,” says Ceylon Asset Management CEO, Sharmini Ratwatte.
“Unit Trusts are useful to people who do not have enough money to buy into a lot of companies. Even professionals who do not have time to invest in the market can buy units.”
The minimum investment for the Ceylon Investment Fund is 10,000 rupees.
Ceylon Asset Management is bullish about prospects for 2007.
“Though we say there is uncertainty we can see that there are prospects of activity that can keep this country moving forward,” says Wijesinghe
“I’d like to draw your attention to a phenomenon taking place in this country, and that is the high value of land and buildings. The sale of apartments is a new business in this country and construction is booming in this field.”
Risk and Reward
However some analysts warn that these could be warning signs.
Loose monetary policy which has created asset price bubble may be ending with the Centr