The NCBA Equity Fund was one of the standout Kenyan equity funds of 2025, and it is a natural pick for investors who want stock-market growth without picking shares themselves. Backed by NCBA, one of the country’s largest banks, the NCBA Equity Fund pools your money into a basket of Nairobi Securities Exchange shares, aiming for long-term capital growth. This review covers its 2025 return, the honest risks, the fees to check, and who the NCBA Equity Fund actually suits.
Table of Contents
Key takeaways
- The NCBA Equity Fund is a stock-focused unit trust backed by NCBA Bank, aimed at long-term growth.
- It reported one of the higher 2025 returns among Kenyan equity funds, around 21%.
- Honest note: even that strong number trailed the NSE 20 index, which rose about 56% in 2025.
- It carries real risk: the value can fall in a bad year, and fees are higher than a money market fund.
- Suits long-term investors (five years or more). Educational only, not advice; verify the current figures on the fact sheet.
What the NCBA Equity Fund is
The NCBA Equity Fund is a collective investment scheme, or unit trust, run by NCBA’s asset management arm. It invests mainly in shares listed on the Nairobi Securities Exchange, spreading your money across many companies so you get instant diversification. You buy units at the current price, and their value rises and falls with the shares the fund holds. Like all equity funds, it is built for long-term capital growth rather than steady income, and it is regulated by the Capital Markets Authority. If you are new to the idea, start with our guide to what an equity fund is.
NCBA Equity Fund returns
On performance, the NCBA Equity Fund did well in a strong market. It reported a 2025 return of around 21%, placing it among the better-performing Kenyan equity funds that publish daily pricing. That is a healthy number for a single year. But context matters: the NSE 20 index rose roughly 56% in 2025, so like most active equity funds, the NCBA Equity Fund still lagged the market itself. That is common in a runaway bull year and not unusual, but it is a reminder that a strong headline return can still trail a simple index. Returns are past performance and change constantly, so always confirm the latest figure on the fund’s fact sheet.
The bull case
The NCBA Equity Fund has a few things going for it. It delivered one of the stronger returns among its peers in 2025, it is backed by a large, well-capitalised bank, and it gives you diversified exposure to the NSE in a single, easy purchase. For an investor who wants long-term growth and does not want to research individual stocks, the NCBA Equity Fund is a straightforward way in. If you reinvest and stay invested for years, that growth can compound, as our compound interest calculator shows.
The bear case
The risks are the same ones that apply to every equity fund. The NCBA Equity Fund can fall in value in a bad year, because it holds shares, so it is wrong for money you might need soon. Its fees are higher than a money market fund’s, and that cost eats into returns over time. And as 2025 showed, an actively managed fund can trail the index, so you are paying for management that does not always beat a simple benchmark. None of this makes it a poor fund; it just means the NCBA Equity Fund suits patience and a long horizon, not a quick win.
Who should invest?
The NCBA Equity Fund suits a long-term investor, ideally five years or more, who wants growth and can accept the swings. If you might need the money soon, or a sharp drop would tempt you to sell, it is the wrong home for that cash; keep short-term money in a money market fund instead, and see what one returns after tax with our money market fund calculator. To compare it with other options, read our guide to the best equity funds in Kenya and our equity fund vs money market fund comparison, and see another we have reviewed in the Arvocap Thamani Equity Fund.
Frequently asked questions
Is the NCBA Equity Fund a good investment?
It can be, for long-term growth, if you accept the risk. The NCBA Equity Fund posted one of the stronger returns among Kenyan equity funds in 2025, but it still trailed the index and can fall in a bad year. It suits patient investors, not short-term savers. Verify the current return and fee on the fact sheet before deciding.
What return does the NCBA Equity Fund pay?
It reported around 21% for 2025, among the higher figures for Kenyan equity funds. But equity fund returns swing year to year and can be negative, so this is past performance, not a promise. Always check the latest number on the fund’s fact sheet.
NCBA Equity Fund or a money market fund?
They do different jobs. The NCBA Equity Fund is for long-term growth and carries real risk; a money market fund is stable, liquid and lower-return. Many investors hold both, an equity fund for growth and a money market fund as their safe core.
Disclaimer: The content on Sarafu is for educational and informational purposes only and does not constitute financial or investment advice. Returns are as reported for 2025 and were sourced at the time of writing (2026); they are past performance, vary widely and change constantly. All investments carry risk; the value of an equity fund can go down as well as up, and you may get back less than you invest. Always verify current figures on the fund’s fact sheet and consider consulting a licensed financial advisor before investing.
