Nairobi, Aug. 18 -- Unit trust funds putting investor funds into select listed stocks have trailed returns of the Nairobi Securities Exchange (NSE) as the schemes struggle to deliver market-beating returns.

Equity funds have posted an average return of 16.6 percent since the start of the year compared to Nairobi bourse gains of 26 percent over the same period.

The performance of the schemes reveals the challenge of beating the market through select stock picks even as unit trusts offer portfolio diversification to retail investors eyeing the Nairobi bourse.

NCBA equity fund delivered the highest return among peers on a year-to-date basis at 21.1 percent, with the price of its unit trust rising to Sh276.41 from Sh228.24 at the end of 20...