In recent years, Sri Lankans have seen how unpredictable the economy can be. Simply putting money into a savings account will not help your savings to grow. The latest Colombo Consumer Price Index (CCPI) for May 2026 shows inflation reached 5.5% in May, up from 5.4% in April. Food prices increased by just 0.9% in May, but non-food costs jumped to 7.8%. While this increase was mostly because local energy prices went up due to ongoing tensions in the Middle East, the point is that most savings accounts will not pay you 5.5%. What is the outcome? When prices rise quickly, savers lose some spending power. Your spending on essentials like housing, electricity, gas and transport that cost Rs. 1,000 today will cost 5.5% more tomorrow, but the interest you earn keeping the Rs. 1,000 in your savings account will not be enough to cover that increase.  While experts think inflation will stay above 5% for some time, even fixed deposit interest, after tax, may not offer much of a solution.

So, what should you do? Saving money is a good start and keeps your money safe, like parking your car in the garage. It is secure but does not move... However, investing helps your money grow, fueling your car to move it forward to your destination.

Managing your wealth well means knowing which money to use for different needs. You can divide your money into three groups. The first group is for money you need soon, like school fees or emergencies, so it should be safe and instantly accessible. The short-term JB Vantage Money Market Fund is a good option here. The second group is for money you will need later for mid-term goals typically needed in 3+ years, such as for a house down payment, so that it can grow in an Income or Balanced Fund. The JB Vantage Credit Opportunity Fund fits this need. The last group is for money you need some time in the future, say 7+ years, like for retirement or leaving a legacy. This money can handle short-term changes in a growth-focused Equity Fund, like JB Vantage’s award-winning Value Equity Fund.

Having a mix of different investments is the best way to handle capital market ups and downs and lower risk without losing returns. But building this kind of portfolio by yourself takes a lot of time and research. Christine Dias Bandaranaike, CEO and Portfolio Manager at JB Financial, explains, “For busy professionals, Unit trusts are a very accessible and smart tool for wealth creation, as they provide professional management to everyday investors and simplify investment decision making. Unit Trusts are pooled investment vehicles that offer a powerful yet convenient opportunity to transform your savings into investments.  They collect a pool of money from multiple investors to buy a diversified portfolio of pre-agreed asset types. By buying into a proportional share of the fund's assets, investors get immediate diversification within a few steps. What’s more, investors can easily achieve that mix of different investments that lowers risk and increases returns. This is often called a "financial smoothie," where your money is spread across government stability, equity growth, corporate income, and market liquidity."

Unit trusts are also tax pass-through vehicles, so there is no extra tax beyond 10% WHT at the fund level. This makes them a tax-efficient way to get professional investment management. As inflation rises, moving from just saving to investing in strong, diversified products is important for protecting your wealth over the long term.