Unit Trust investment in Malaysia, is comparatively to many, a low risk investment. It is very liquid with daily transaction price. The funds are largely diversified, hence reduce risk. Easy startup, with as little as RM1,000, investors have the opportunity to put money to work in stocks, bonds and securities in many countries in the world! These are the key benefits:

1. Like bank accounts, unit trust account is easily cash out the day you decide to cash out!

2. It easily suite into short term and long term need, normally market return expectation vary from 2.5% to certain funds as high as 15%p.a. growth. (A piece of advise, do get a good advisor’s opinion before start up any plan as there is entry or exit fees incurred. Normally vary from 0-5.5%)

3. Easy entry, as low as RM100-RM1000, you can start a plan to accumulate wealth.

4. In 2012, Malaysia Government implement a RM3000 tax relief for individual who choose to save through unit trust Private Retirement Scheme.

This is an excellent tools to hedge against inflation for long term, especially for those who can’t deal with up and down of market behaviour, and prefer regular monthly saving discipline. In long term average, for the past 20 years, well manage Malaysia unit trust funds that invested in equity market has recorded 10% p.a. growth! This work out a pace of 7.2 years to double your asset. It is still better then fixed deposit!

Frequently Asked Questions

What is a unit trust?

A unit trust pools money from many investors, which is then invested in a variety of assets in order to meet specified investment objectives. The pool is managed by a team of full time professionals and a trustee is appointed to protect the interests of the unit holders.

What are the types of unit trusts available?

Unit trusts can be divided into several categories depending on their investment objectives and focus. In general, they are divided into three main categories: shares, bonds and balanced funds that combine shares and bonds. Some funds are invested in a single country (e.g. Singapore, Thailand), some in specific regions (e.g. Asia, Europe) and some globally. There are also funds that focus on specific sectors or industries such as technology and healthcare.

Why invest in unit trusts?

Unit trusts offer several advantages.

First, you can select a fund or a combination of funds to cater to your specific investment goals and tolerance for risk.

Second, through unit trusts you can invest in securities that you may be unable to access as an individual investor. These securities include bonds that usually require a big minimum investment amount. It may be difficult for you to invest directly in overseas stocks whereas you can conveniently invest in unit trusts investing in international stock markets.

Third, funds invested in unit trusts are managed by professional fund managers and analysts. You can therefore benefit from their expertise and full time attention to investing the funds.

Fourth, buying and redeeming unit trusts is simple and convenient. You can get updated values of the price of your unit trust from Fund Managers website or the newspapers. Most unit trusts in Singapore allow daily buying and selling of funds. The cost of investments are largely front loaded. Exist cost are largely free.