For those adversed to the rigors and stress of investing directly in the stock market, the unit trusts investment vehicles can offer some relief. In this article explain what unit trusts are and how one can invest in unit trust in Malaysia. This guide on unit trusts is for educational purpose only. Please ensure that you seek a licensed unit trust consultant or agent before you purchase any unit trusts as most individual funds have their unique characteristics and fees which will affect the performance of the funds.
Why invest in Unit trusts/Unit trusts? ·
Affordable Investing- Unit trust investments are affordable for almost everyone. You could immediately be the owner of a diversify portfolio of equity shares for just a small investment of RM1,000.
Affordable Professional service – When you invest in a fund you are actually making use of an experienced and qualified fund manager to manage your portfolio of equity or money market investments. Most fund manager are quite adept in preserving the funds value and growing it. ·
Safer to invest than stocks by yourself – Although a fund may invest in stocks as well, it has the resources to hold a diversified portfolio which many offer better diversification of risk than if you invest in stocks yourself. ·
Better returns than Fixed Deposits – Unit trust schemes normally targets for better return to investors than Fixed Deposits and except for international funds, there is little foreign currency exchange rates risk. ·
Liquidity - An investor can sell his units, wholly or partially, at the following trading day's unit buying price. Units have a high liquidity, that is, they can be readily converted into cash.
Advantages of Compounding - Many unit trust funds provide facilities for investors to reinvest their distributions. For those who opted for distribution reinvestment, the fund will automatically credit the distributions into the account, rather than sending distribution warrants.
Action Steps
The best contacts and resources to help you get it done
Get in touch with a PDUT
In Malaysia, a PDUT is a licensed "Person Dealing in Unit Trust". Licenses are issued to qualified professionals by the Federation of Malaysian Unit Trust Managers and is governed by the Securities Commission of Malaysia
I recommend: If you are interested in investing in unit trust in Malaysia please contact me at consultant@drcservices.biz. I am a licensed PDUT attached to Public Mutual Berhad, the largest Unit Trust company in Malaysia with many award winning local and regional funds.
www.publicmutual.com.my
Know your own risk profile
Before investing make sure you know and understand your risk profile. Different funds have different level of risk and you should invest in one that matches your risk profile.
I recommend: Try finding out your risk profile at this link
http://www.ykconsultancy.com/riskprofile.htm
Tips & Tactics
Helpful advice for making the most of this Guide
- Remember, with unit trusts, you get higher returns than deposits or bonds and its professionally managed to enhance your savings.
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