A unit trust is a fund composed of investors’ money, which is invested in a variety of financial assets. When you invest in a unit trust, your money is pooled with money from other investors and invested in a portfolio of assets according to the fund’s stated investment objective and investment approach.
In the past, the benefits of investments were enjoyed by institutional and high net worth individuals only. Today, unit trusts are an excellent investment option for both small and large investments. With unit trust, you can start to invest an initial amount of only RM1000 for lump sum investment or as low as RM100 per month for regular saving plan.
Why invest in unit trust funds?
A fund is managed by a professional fund manager who decides what assets to buy or sell based on the investment objective of the fund.
Funds invest in a diversified range of assets. A fund’s diversified portfolio means risks can be better spread over the assets in the fund. The poor performance of any one asset in the fund is less likely to have a major adverse impact on your investment as a whole.
Access to Assets and Markets
Funds also provide access to assets and markets, which may be difficult for you to invest in directly. Also, for a smaller amount of money, you can invest in a diversified portfolio of assets, which could cost you more to buy if you had to pay for each asset in the fund individually.
Wide Range of Investment Funds
There are many funds to choose from. You can select a fund or a combination of funds to cater to your specific investment objectives and risk tolerance. For example, if you are nearing retirement and have a low tolerance for risk, you may consider funds whose objectives are capital preservation and income generation. On the other hand, if you are looking for capital appreciation and are willing to accept higher risks, there are also funds that focus more on growing your capital rather than generating income.
Range of funds
Equity fund is a mutual fund that invest principally in ownership of publicly traded businesses by buying common stock. It can be actively or passively managed. Equity funds are also known as stock funds.
A bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.
Balanced funds are geared toward investors who are looking for a mixture of safety, income and modest capital appreciation. The amounts this type of mutual fund invests into each asset class usually must remain within a set minimum and maximum.
Fixed income investments generally pay a return on a fixed schedule, though the amount of the payments can vary. Individual bonds may be the best known type of fixed income security, but the category also includes bond funds, ETFs, CDs, and money market funds.
We distribute more than 290 fundsfrom 24 Fund Houses
Frequently Asked Questions (FAQs)
There are different types of funds available. Each one will have its own investment objective and investment approach or strategy. The investment objective may be capital appreciation or to generate income. The fund manager decides the fund’s investment strategy (to achieve the investment objective) and what assets to buy or sell.
In general, funds may be divided into three main categories: shares, bonds, and balanced funds that combine shares and bonds. Aside from shares and bonds, funds can invest in assets or a combination of assets such as:-
- Financial derivatives
- Cash or cash-equivalent products
- Real estate
- Units in other funds
Fund managers may set up funds that invest in a specific country or geographical region, e.g. Malaysia, Asia, or Asian emerging markets. They may also set up funds to invest in specific sectors, e.g. infrastructure, technology and healthcare. There are also funds which invest according to specific themes such as climate change or ethical investing. The risks associated with a fund strategy are determined by a combination of the underlying assets selected, and the geographical regions, industrial sectors or themes.
Funds with the same investment objective may use different investment strategies to achieve the same goal. It is important to choose a fund that meets your own investment objective and risk profile.
Every fund must be accompanied by a prospectus and product highlights sheet (PHS) when it is offered to you. Ask for these documents and read them carefully to understand the fund’s investment objective, strategy, risks, fees, historical performance and other important information.
After investing, you can expect to receive the following reports:
- Monthly and semi annual e-Statement through email containing investment portfolio statement and summary of transactions.
- The interim and annual reports of each Fund will be forwarded to Unit Holders no later than two (2) months after the end of the financial period in respect of each Fund.