When it comes to investing in Kenya, two popular options that investors consider are LapFund and LapTrust. While both investment options offer attractive returns, there are significant differences between the two that investors need to understand before making an informed decision.

At spoonyo.com, we understand the importance of making informed decisions when it comes to your investments. That’s why we’ve put together this article to help you understand the key differences between LapFund and LapTrust, with a focus on LapTrust Kenya

What is LapFund?

LapFund is an investment option where investors pool their money to invest in a portfolio of securities. The objective of LapFund is to generate maximum returns for the investors by investing in a diversified portfolio of securities.

What is LapTrust?

LapTrust is a trust that holds assets on behalf of beneficiaries. The objective of LapTrust is to protect and manage the assets of beneficiaries and ensure that they are distributed as per their wishes.

Also check:How To Send Money From UK To Kenya Via Mpesa

Key Differences Between LapFund and LapTrust

1. Investment Objective

LapFund’s investment objective is to generate maximum returns for investors by investing in a diversified portfolio of securities. On the other hand, LapTrust’s objective is to protect and manage assets on behalf of beneficiaries.

2. Management

LapFund is managed by a professional fund manager who makes investment decisions on behalf of investors. LapTrust is managed by a trustee who is responsible for managing the assets in the trust as per the terms of the trust deed.

3. Risk

LapFund carries a certain degree of risk as it invests in a diversified portfolio of securities.

On the other hand, LapTrust is a low-risk investment option designed to protect and manage the assets of beneficiaries.

4. Liquidity

LapFund is highly liquid as investors can sell their units at any time. However, LapTrust is a less liquid investment option designed to hold assets for a longer duration.

5. Taxation

LapFund is subject to capital gains tax and dividend tax. LapTrust is not subject to capital gains tax or dividend tax as it is considered a separate legal entity.

In conclusion,

both LapFund and LapTrust are great investment options in kenya , and the choice between the two depends on the investor’s investment objectives and risk appetite.

At spoonyo.com, we offer a range of investment options to our clients, and our team of experts can help you make an informed decision based on your investment goals.