5 Reasons to Choose Unit Trust in Malaysia
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
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Let''s look at 5 reasons to choose unit trust, as shared by Unit Trust Consultant JMR.
Once you understand the reasons, unit trust will surely become your preferred investment instrument.
Unit Trust is one of the investment instruments available in Malaysia.
It is legitimate and safe as an investment vehicle because Unit Trust companies are regulated by Bank Negara Malaysia and the Securities Commission Malaysia.
There are many Unit Trust companies for you to choose from.
Through Unit Trust, the Unit Trust Management Company collects money from the public.
This allows the company to invest the funds, managed by a Fund Manager, to grow your wealth.
Unit Trust provides returns through Capital Gain and Dividend.
The average return is around 8% to 12% per year.
Selecting the right fund with high potential is crucial to ensure returns meet your investment plan.
Below is an example of the profit report for a Unit Trust Fund from PMB Investment Berhad:
Most Unit Trust funds are 100% Shariah-compliant as they are monitored and evaluated by the Shariah Advisory Committee.
This means the returns you earn will be more blessed.
You can ask your Unit Trust Consultant (UTC) whether your money is invested in Shariah-compliant funds.
You only need to contact any licensed Unit Trust Consultant to open a Unit Trust account.
The documents required are just a copy of your IC and the applicant''s signature as a sign of agreement and understanding of the prospectus and all risks before investing.
Since not many people have the time to learn stock market investing skills.
This becomes one of the reasons to choose Unit Trust.
Investing in Unit Trust does not require advanced Technical and Fundamental analysis skills like investing in the Stock Exchange.
You do not need to worry about Entry Price and Take Profit because everything will be managed by the Fund Manager.
In fact, investors only need to regularly discuss and get the latest updates regarding their investments.
Successful investing starts with solid knowledge.
Investment Basics:
Download our free ebook for a comprehensive guide.
Open a CDS Account:
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Unit trust is managed by a professional fund manager — investors only need to save and let the experts manage their portfolio. Stocks, on the other hand, require investors to make their own decisions about when to buy and sell. Unit trust is suitable for passive investors, while stocks are suitable for investors who want full control.
Most unit trusts in Malaysia allow an initial investment as low as RM100 to RM1,000 depending on the type of fund. After that, investors can add to their investment regularly with smaller amounts through a Regular Savings Plan.
No. Unit trust is subject to market risk and the value of investments can go up or down. However, risk is diversified because funds are invested across various instruments. For the long term (5-10 years), most unit trust funds show positive returns — but past performance is not a guarantee of future results.
Yes, many investors use both instruments simultaneously. Unit trust for long-term passive investment, and stocks for active investment with higher return potential. Combining both helps diversify your portfolio and balance risk.
Unit trust is a great choice to begin investing passively, but if you want higher returns and full control over your portfolio, investing directly in stocks on Bursa Malaysia is the next step.
Open a CDS account to start investing in stocks on Bursa Malaysia and take charge of your own investments.
Download our free stock basics ebook to learn the fundamentals of stock investing from scratch.
Further reading: