Hi, I’m Ian.
Lately, I’ve met up with a unit trust consultant.
‘Seriously? But Ian, I thought you are an avid stock investor. Why do you need a fund manager when you can build and manage your own stock portfolio by yourself from scratch?’
Good question. Yes, I’ve built a profitable stock portfolio from scratch. I believe all of us can do it too without a fund manager. We can be our very own fund manager. As such, normally, I don’t really meet up with a unit trust consultant as I don’t have any intention to invest in a unit trust fund.
However, as I write, I’m still a young chap. I’m qualified to enjoy the PRS Youth Incentive where I’m able to receive an additional RM 1,000 in my PRS fund from the government if I invest at least RM 1,000 in a PRS fund. Also, I would be able to enjoy some savings from tax payments if I invest in a PRS fund. The total returns seem attractive even before mentioning the performances of a PRS fund. That’s why I agreed to meet up with a unit trust consultant.
The meeting was casual. We had coffee. After some pleasantries, the unit trust consultant (let’s call him Tan) began his presentation which was well rehearsed. In addition to PRS funds, Tan has also introduced a handful of unit trust funds which are not under the PRS scheme. After the meeting, I began to collect my thoughts on his sharing and do further studies on unit trust funds, both PRS and non-PRS funds.
In this article, I’ll share 5 things that you may need to know about unit trusts first before you invest in them. Probably, these are stuffs that unit trusts may not tell you beforehand when you are considering to invest in them.
#1: Beating FDs & the EPF
Tan: ‘Ian, it’s not enough to rely on FDs and the EPF to finance our retirement.’
Ian: ‘What do you suggest?’
Tan: ‘How about our equity fund’
Ian: ‘What’s the sales charge?’
Tan: ‘5% of your capital’
As I write, most FDs are paying out 3% interest a year and the EPF has paid out 5.70% in dividends in 2016 after strings of above 6% of dividends since 2012. How much returns should I expect from the equity fund to beat FDs and the EPF? Here’s some mental maths:
If I placed RM 1,000 in a fixed deposit account, I would receive RM 1,030 upon its maturity. Instead, if I choose to buy units of an equity fund, I would incur RM 50 in sales charges (5% of my capital) and thus, leaving my initial capital to be RM 950. To match my returns with fixed deposit, I would need to earn RM 80 in my first year from the equity fund. This equates to a return of 8.42% from RM 950 of initial capital.
What about the EPF? If the EPF pays out 5.7% in dividends for 2017, then, my EPF should increase to RM 1,057 from every RM 1,000 I have in my EPF account. This means, I would need to earn RM 107 in my first year from the equity fund to match my returns from the EPF. This equates to a return of 11.26% from RM 950 of initial capital.
This means, the equity fund needs to generate more than 8.42% and 11.26% in returns to beat returns from FDs and the EPF respectively. We haven’t even factored in the annual management & trustee fees applicable to these funds.
#2: On Fund’s Performance
Tan: ‘The performance of this fund is good. It has made, on average, 8% a year in returns since its inception in 2013.’
How are returns from unit trust measured? It is based on the net asset value (NAV) appreciation of a unit trust fund over a specific period of time. It is a measure of capital growth over cash returns. As such, returns are dependent on the NAV fluctuation of a unit trust fund and thus, are not guaranteed.
What is less mentioned is the term, ‘Fund Volatility Factor (FVF)’. It is often measured based on returns over the last 3 years. For instance, if you opened a fixed deposit account and received annual interests of 3%, 3%, and 3% over the last 3 years, then, the FVF is 0%. This means, the returns are not volatile.
If you find a fund where the FVF is 10%, this means, the returns may deviate by +/- 10%. If the fund’s average returns is 8%, future returns could fluctuate between -2% to 18%. Thus, high FVF funds have greater uncertainties of future returns than low FVF funds as they are more volatile. This explains, perhaps, why you may experience inconsistent returns from your investment in a unit trust fund.
#3: Am I buying a Trading Fund?
Tan: ‘The objective of investing in an equity fund is to achieve mid-to-long term capital appreciation. Unit trust is a long-term investment and not for short-term gains.’
I believe, there are many sincere people who buy units of unit trust funds as they believe that they are investing. In my opinion, some were being grossly misled.
Here’s another term that is less mentioned. It’s called, ‘Portfolio Turnover Ratio (PTR)’. PTR is a simple way to tell us whether a fund is an investment fund or a trading fund.
For instance, let’s use a IGB Reit as an example. It is a Reit that derives rental income from Midvalley Megamall and the Gardens Mall. Since its inception, it never bought or sold any investment properties. As such, IGB Reit’s PTR is zero as there is no change in the composition of its investment portfolio.
If you find a fund where the PTR is high, this means, the fund manager has been active in buying and selling investment securities. If a fund’s PTR is consistently high, this means, it is a fund that is active in trading and have lesser tendency of holding onto an investment. In most cases, you may find high PTR funds in most equity or aggressive funds.
#4: Guaranteed Returns
Tan: ‘Of course, I must tell you beforehand that returns are not guaranteed.’
Pardon me for writing this. While there are many consultants who possess great customers’ services, ultimately, I believe the priority of all consultants is to make their respective principals rich first over sincere investors like you and me. Let me elaborate.
For a start, the rich invests differently from others. Their focus is on cash flow which are recurring and predictable. Meanwhile, many others choose to focus on capital gains which are non-recurring and unpredictable. Let us assess unit trust investment from the viewpoints of both buyers and sellers.
For sellers, they derive consistent multiple streams of income from your investments in unit trust. They include sales charges, management fees, trustee fees, switching fees and other fees applicable. They make money in both good and bad times as they continue to derive income from investors regardless of the performance of their funds.
For buyers, you incur multiple streams of fees for investing in unit trust in exchange of an opportunity to realise a gain from selling off units at a price higher than your purchase cost. In good times, you may stand to gain if the fund’s NAV goes up. In bad times, you may lose if the fund’s NAV drops. In this case, who’s got the upper hand? I’ll rest my case.
#5: I’m a Risky Investor?
Ian: ‘Well Tan, I invested in stocks.’
Tan: ‘So, you are an aggressive investor. I think, you can take high risks. After all, stock investors are high risk takers.’
Ian: ‘Ehm… Not exactly, bro. I’m actually quite conservative.’
I suppose, there is a misconception of who stock investors are, their nature and what they actually do. I believe, stock investors are branded as high risk takers as many do not know the difference between speculators, traders and investors. Here’s the key difference.
In most cases, stock investors are conservative by nature. Before investing, they want to know what they are investing into, how their money is being used, what their returns are, how potential risks are mitigated, and more importantly, can the price of the investment be reduced further. This is why stock investors need official documents such as annual reports, quarterly reports, press releases, and investors’ presentations to assess a stock deal.
It is not the same as unit trust where most people buy units, not knowing how their money is being managed, and hope that the units somehow will appreciate in prices. Knowing adds certainty. To stock investors, investing without knowledge is very risky. Thus, if a unit trust consultant fails to explain how my money is going to be invested, then, I reckon that the investment is very risky.
So, You want to Buy Units in a Unit Trust Fund …
Here are some guidelines:
– Find funds that have lower sales charges.
– Ask for the funds’ FVF & PTR.
– Ask for the funds’ distribution policy.
– Benchmark performance against FDs and the EPF
– Don’t be lured or oversold by ‘Best-Performing Funds’.
– Check out Conservative Funds. Don’t dismiss them.
– Ask how your money would be invested. Where does it go?
96 replies to "5 Things Unit Trust Consultants will not tell you …"
Im license UT agent and also invest in UT by others. As all investment you need to monitor your investment to know when to buy at low and sell at high. I notice not all agent are create equal, Myself also got burn to assist friends on their UT target. So see if your agent is only looking to find you when they need sales then keep quite for long time or forever, then its time to manage yourself or moveout. There is some agent focus on having big portfolio under their belt for income then actively managing it. Not all agent & only few can manage actively if they say I have 100 client under my port.
I recently came across an agent who sold me the EPF MIS. The way the agent sell the product is totally misleading since it’s under the EPF umbrella. It gave the impression that it is as safe as the saving in EPF which is guaranteed by the government. In fact, it is a UNIT TRUST. Therefore all things unit trust apply including fees and potential of not making/ losing money
Greetings Mr. Ian Tai,
Thank you very much for such an informative article. I agree with you every word 100%
I just lost some money in the unit trusts and decided to close everything. Was pushed to invest in high risk funds albeit telling many times that I am a low risk investor. Never will I trust unit trusts again (it is funny how the word “unit trust” has the word “trust” in it).
Will stick to EPF, ASB, AHB and ASN instead. For the rest of you newbies, please think twice before putting your foot into unit trusts.
Whether the funds are performing good or bad , UT fees, switching fees and every other fees are charged. So if u make a 2 percent return and pay up all the fees , sure u end up losing money . Even if u average out 8 percent return , EPF still gives better return in the long run . Don’t believe the UT agents , they need you to make money ,at least that’s their first priority , then giving u profits are a best effort basis .
Hi all I am looking for advises/experience from others
I too invested in unit trust and received frantic calls by bank asking me to withdraw one month before maturation and dividend calculation because the fund is losing money. I am stuck before I don’t know who is telling the truth or lies. Whether upon maturity the recalculated dividend will reduce the loss.
Hi there even though it’s been more than 3 years for this post but as a UTC and also an investor in UT for the past 5 years I would suggest the investor to do their own diligence before investing.
Such as knowing what are the fund investing in and if the fund performance at par with the benchmark in the last 10 years.
But just to clarify past performance doesnt correlate with future performance.
Same goes to me as a UTC I will only suggest my client to invest in the UT after I have do my homework since the client trusted me,the least I could do is to help the client to make money.
Last advice,buy more unit when the market crash if you’re investing into equity fund.
As in the long run the market will recover unless you invested in Japan equity.
Hi,
After reading all the opinions, it has pro and cons of UT. Well i believe when you do some investment you are already put yourself at risk. So do not expect to win all the time. I have invested since 2011, so far I’ am good. I did some withdrawals few times. I took cash and EPF investment, I bought few types of funds.
My opinion for those who want to consider,
1) Do not focus on one type of investment, EPF or ASB alone, just give a try to other type of investment that is approved by government.
2) The profit not to you alone. It means for sharing. Must get ready to think of profit distribution. ( If you are too focus how much the agent get, its not worth to pay the agent fees, switching fees, then better forget about INVESTMENT because you are questioning the benefit of others).
3) Just remember things don’t come easy, We are not here to have GOOD TIME alone. It’s like business and risky. Please read more books on investment. I would reckon you to read ‘Poor Dad and Rich Dad’ advice. So are you ready to invest? Please study the investment horizons in the long term before making decision.
4) I have seen some investors make money in UT at the rate of 20% -25% average after 6 to 10 year.
I am not a unit trust consultant and the online graph not meant to be seen everyday.
I have invested with PM since 2009 using epf saving. Due to many withdrawals and several redemption registered in the statement, how i can calculate the ‘opportunity’ loss to compare with return from unit trust funds.
I invested RM55k in UT (Mixed Asset Fund) via EPF scheme back in 2006/7…since then, the units grew substantially and today the fund worth Rm96k… not sure how much that RM55k EPF worth today should I left the amount in EPF
proacez2000@yahoo.com
Actually, a simple calculation will show that you will earn MORE with the EPF. If you assume an average 5.5% annual return (less than actual EPF dividend), your 55k in the EPF would be more than 103,000 now.
Your investment in epf will be:
End of 2006: 55kx 1.0515 =57.83k i.e the capital rm55k x (1+epf dividen) . Epf dividen for 2006 is 5.15%=0.0515.
End of 2007: 55kx1.0515x 1.0585.=61.18k Dividen 2007 is 5.8% , the factor is 1+0.058=1.058.
….. di this until 2019
Total at the end if 2019 is RM116k.
The average epf dividen 2006 to 2019 for 13 years is 5.91%. The simplified (not accurate) calculation is 55kx(1+0.581)power 13=RM116k.
Its better to sell ur UT when stock mkt at its peak
There are some facts but this article is more on opinion… Many have voice out their dissatisfaction towards Unit Trust but have you actually learn how to invest in one? Have you really sit down and learn? Or you were just agreeing nodding your head just to make the conversation quicker? I might sound like a broken record but Unit Trust investment is mid to long term investment.. Mid is 5 years and Long is 10 years…
Have you ever seen Mutual fund company advertise their return in percentage for for Equity investment? Have you ever wondered why? Return of your investment are purely based on your investment strategy you take i.e . Are you the hit a little and sell guy or the one that believe in reducing the ‘Dollar Cost Average’ per unit. Every strategy you take will give a different result.
To maximise the profit, one should redeem or realised your gain when you have meet your investment goal and not based on perception or when the economy is at rock bottom.
You should focus on objective and not gut feeling or hearsay. One should clearly decide based on investment strategy and how the agent manage the risk, then only will have correct expectation.
To achieve successful investment you will need;
1. Set a clear investment goal amount.
2. Identify your investment time horizon.
3. Your investment frequency and amount.
4. Co-relate the information above with the investment funds that has the right volatility potential return based on the attributes listed above.
Get advice from accredited professionals and in this case Fund Manager, Unit Trust Consultants, Economics or maybe Certified Financial planners. LISTEN to them. If you don’t understand then clear your mind, open your perspective and LEARN. If they can’t give you a straight answer then clearly you need a better Consultant for accurate advice.
DO NOT listen to unprofessionals, gut feeling whispers from your surroundings. Learn to use 401K calculators. Make experiments from mock up numbers published by Unit Trust Company’s and observe how the investment amount growing based on time. Take in factors of every economic downturn and the outlook of every economic downturn and upward trends. Relate it to supply and demand.
If you have any doubts; can always connect with me at alfie.iznan@outlook.com
I have experienced loss my money in unit trust but i have learn to manage it by myself. I am using iEPF platform. My method is when i think the fund reach top of the history price then i sell it. Some case i get 3% just in 2week. Also if price go down i use martingale concept double it, so that it a lot of NAV i will get. My question is What do you think on very short investment in unit trust?
Thanks KCLau for your comment in withdraw kwsp, im also having the problem where my agent cant answer my question on my Pbb mutual investment..my investment nearly 5 years where my agent only come and see when want to repurchase the unit. For past 5 years compare to kwsp is not generate any profit im losing money nearly RM28k.
You can manage it yourself with the new EPF i-account – allowing you to choose fund.
I think many people do not understand how Unit trust works.
After I read your articles, I personally feel most of your articles are putting Unit trust as a bad investment.
I’m investing in stocks, properties, unit trusts and having some small business investments.
I would say that :
1) Unit trust is not an investment for us to make big money (15% /pa consistently)
it’s possible to have 8-10%/pa for 10 years.
– I have seen many customers still making lost even they have invested for more than 7-10 years. ( i would say their unit trust consultant just want the commission but not putting effort on learning investment )
2) I know stocks, therefore I will invest in stock market.
for those who do not know about the stock market, unit trust is a good investment tool for them ( if under PROPER MONITORING, of course )
i like to read your books in the past, but unfortunately, the more I know about investment, i feel most of your articles are not so genuine.
Indeed. Unit trust considers over-promising but an under-deliver investment.
I invested public mutual from 2016 till Feb 2020. the total investment is RM500k. Let me tell you the fact. I STOP my investment with effectively from Feb 2020 reason being I earn ZERO return and suffer 15% loses!
Technical I m losing (8% x 3 years + 15% losses) 39%. I can even show you my printed statement from Public Mutual!
If i invest in other one year return minimum is 8%
Look at the return now on the fund that you invested.
From march 2020 until now most of the fund are giving massive return.
Please understand unit trust is for MID to LONG term investment.
If you get lucky, you would earn profit in short time. but if you are not so lucky, that is when patience is needed.
For better return, practice ringgit cost averaging where you don’t have to worry about the volatility.
I have clients who invested since 2017 and not making much return, but this year alone they are making huge return and after some calculation, it is about 10% PA in 3 years. This is after deduction of sales charge!.
if you need some advice you may contact me at 0126359077.
I invested in Public Mutual using my EPF since 2010 and declined in 2019. Sadly I trusted my consultant (a gud fren). Only after 10 years I did the calculation comparing the yield between KSWP and Unit Trust. I should have gained RM36k more if the money were remained in KWSP. The agent kept mentioning that i did not loss. For me, the reason people invest in unit trust is to gain more money compared to KWSP… after all, that was the promise they made when they approach us and showed other clients profit statement as baits.
Hi
Currently, I am an unit trust consultant for PMB Investment, susidiary of Pelaburan MARA since 2018. Previously , i was former UTC for number 1 UT company in Malaysia for 10 years. I can share with you the differences of these two company, in term of investment strategy, fund performance and the treatment how the UTC should consult client during good and bad time. What i can say, my clients are very happy with PMBI approach and of coz the return that they get already. Feel free to visit my fb page, “Nak melabur?” to see the testimonial. You may also reach me at 013 801 9615.
I am a business owner. I started to invest in UT in 2007. So far, my investment in UT gave me good return of 7 to 8% pa. Only recently it sky dropped about 30% in my portfolio due to current market condition in 2022.
I started to learn stock in 2021, and I managed to get profit from capital gain and at the same time getting my dividend. Some of my stocks dropped almost 50% in 2022.
I also invested in properties, mostly in Penang, and some in KL. I love to put my monies in FD as well, even though the rate is low compared to other investment, but I want peace of mind as it is safer.
My conclusion here is do not put all eggs in one basket. Diversify your portfolio.
Well said. He is for some reason prejudiced against unit trusts
I have been invested in Unit trust using EPF money since 2010 – 2018. My current unrealised value for all fund is around 16% profit. To my understanding, my profit is only 16%/10 years=1.6%. The most profitable fund is around 30%+ up & down from 2010. That does not mean anything as it has not been realised. I saw someone got current value profit until 60% which about 6%yearly over 10 y .
Am I right, putting the money in EPF (average 5% lowest 2%+ divident) is better that UT.
I think you know the answer.
Lau, hope you don’t continue to give half cooked informations. Please for God sake.
FD gives around 3% returns and EPF gives around 6% returns so on that basis, UT funds will need to perform at average 9% or 12% to beat FD or EPF respectively. That is not how you do the comparison Lau. That’s a very typical comparison done by those lack of information or some with uncalled intention to mislead. If you are the first category, I hope you can take up some basic lesson first and only life can teach you a lesson if you are second category of person.
In UT, there are 5 categories of funds and not all of them has 5.5% service chargers. Some has lower than 0 to 0.5% service chargers. Each categories has it’s objectives, characters, risk levels and risk management’s which can be applied by any person with basic guidance from FIMM licensed consultant.
FD rates fluctuate according to OPR rate set by BNM according to economic conditions domestically and internationally. Typically, OPR rate increase when market goes on correction and OPR reduced when market goes on positive outlook. So, where the banks will invest to honour higher FD rates when market goes down? Collectively, with diversification and management by professionalmanagers, the money deposited by public will be invested into selectively potential stocks, Real Estates and investments.
Collectively, Diversification, managed by professional managers and into stocks, REITS and investments are typical identity of UT as well.
FD is best for short term investment, like wise UT has short term funds as well, like Money Market Funds, Fixed Securities, eCash Deposits, and bonds for longer period returns which has records 6% to 7% performance.
KW5P on the other hand, is also has typical identity of Balanced funds or Mix Assets Funds. KW5P is well blended with money market funds, fixed securities, bonds, equities, Real Estates and other legitimate investment vehicles. 15years performance of KW5P has an average of 5.8% compounded returns, while the same period someone has performed at average 10% to 12% compounded returns after 5.5 service chargers. Guess who Lau? Anyway, anyone, withdrawing their 20 or 30 years KW5P before retirement age?
Those 5 categories of UT funds can be further categories into 3 basic chartacters.
Only distribution paying funds, only Capital Gain fund (typically the ETF type) and the last, the Distribution + Capital Gain type of funds.
Every distributions, doesn’t only pay out of unit price but it also increase the number of units in a fund hold by investors. Thus, dollar cost averaging happens which will help to make profits in long run.
By the way,
Why don’t you say that even insurance companies are investing into UT and they only have 1 type of UT fund which Capital Gain only. All the insurance products come with Cost of Insurance (COI) which increase OVERTIME due to the aging of the insured. This additional cost will be deducted from UT funds by automatically selling the units to cover COI. The insurance products also has unit deductible riders which will increase as person insured aged and this cost also will be deducted from UT funds. The only place your savings can be zero is insurance. Why don’t you say that as well?
Be transparent as financial coach Lau. Please..
Totally agree with you, Mr Gobinath…
I have personally seen many people making good money from UT investment. I only invested for 3 years & i’m very happy with my return so far, definitely way better than FD & EPF.
It all depends on how you monitor your UT funds & do necessary switching when needed.
Lau’s statements are seriously misleading & i doubt his intention of sharing this article.
His comparison between FD, EPF vs UT is just for ONE year? He must be kidding…
If you refer to the actual performance between FD, EPF vs UT for the past 10 years, you will know who is the real winner. Especially if you are comparing with Equity funds… easily double-digit return per annum.
My little advice to Lau, you have nothing to lose if you share the truth & let the readers make money but please do not mislead them, God is watching us at all times…
Thanks for posting a comment for a meaningful discussion.
I did a quick check on the Morning Start website:
https://my.morningstar.com/ap/quickrank/default.aspx
Out of 1340 funds, only 56 funds produced at least 7% compounded return per year (2010-2020).
That’s only 4.18% of the funds that could beat EPF’s dividend. By the way, not all the 56 funds are allowable for EPF withdrawal. You will need to be either lucky, or time the withdrawal right, and have the temperament to withdraw EPF to invest when the market is down.
Even though in the long-term, there is no guarantee the withdrawal from EPF will produce a better gain. But what’s guarantee are these:
– Agent makes income through commission as soon as you withdraw, which can be up to 3%.
– Fund Managers get paid the management fee even investors take a loss.
Kudos to you since you’ve made a profit from your EPF withdrawal. I think you are a skillful investor.
Thanks for the information provided Lau . I came to the same conclusion after investing in unit trust for ten years . Don’t waste ur time arguing with these unit trust agents . The public must know what is really going on in these investments .
For the past 1 year, things have been bad for the UT industry. Tune to fellow into my investment strategy and retrieve some to go back into EPF.
Hi there,
I had invested before in stock, and I lost a lot during the bad time for eg late 1990s. After that, I still try to invest in the stock but then I lost interest coz I am more toward capital gain person.
Then my best friend introduced me to UT and honestly at first I was scared coz it involeved my epf money but now it was history.
I had seen the market up and down, of course all people that included me, wanted to see the positive or up only. During the up time, of course the capital gain is there but during the down time is scary.
As time goes by, I read and ask question, knowledge help keep me at ease. Actually I am more relaxed now than before. One of the information that we had read above, dont panic when the market went down coz that were the time the nav is low and we should be buying a lot and keep for the rainy days. Knowledge could keep u calm.
I am still love of any kind of investment that are legally allowed by our gov. We must know, when we said investment there will be always a risk that we have to deal with..
Tq.
How to calculate the FVF? I can’t seem to find them in a few of fund perspectus that I downloaded from FSM.
When someone is picking on the other people, their objective is very clear. To put it down, so he/she can rise. Different people have a different need. That’s why there are many investment instruments in the market. Stock, mutual funds, gold, property etc. To criticise the other type of investment is like you spitting to their faces, so the flocks will join you.
Any investment comes with risk, as the says goes No Risk, No Gain. It’s just how we navigate our investment is what matter.
nice and clear..thank you for your information..i as a unit trust consultant will do the best for my client..anyone who want to know about our product please let me share and guide.. 0122441109 safwan
Thank you Ian for your well written article. I thought I was wise when I invested RM68k eight years ago and RM200k four years ago thru two different unit trust consultants, from two of the biggest unit trust companies. Took out my EPF because I trusted the consultants as they are my relative and a good friend too.
Ian, what you shared in your article was exactly what I went thru. Today, both investments are worth RM63k and RM175k respectively. It is a different picture should I let it grow in EPF. I am not sure of other people’s experience, but that’s my own. Thank you
Basically, you are still making loss after eight years and 4 years respectively? Do you mind to share which unit trust you have invested?
Like what Ian has said, return from investing in unit trust does not have any guarantee. Unit trust companies invest capital collected from people like you and me and pour them into stock markets. When the market is bullish, you will earn profit. When the market goes down like now, your investment suffer losses. That’s very normal.
That’s why we need to know what we are doing like what Ian has said. We cannot just blindly trust our good consultant friend or relative, because they are also innocents, they were just delivering what they have been trained to say or present. Even if you ask your relative consultant now why your capital incurred losses, he may not be able to answer you unless he get the answer first before you ask him.
I believe we need to be proactive in handling our capital especially like sum a large sum of hard earned money like yours. When we invest, we need to cultivate. Like a farmer cultivates his crop for a better harvest. We cannot invest and forget all about it. For better discussion, please come into my unit trust web blog for unit trust investment strategy at https://wisefocusblog.com/2017/09/18/7-strategy-reasons-why-switching-is-mandatory-in-unit-trust-investment/
You can also read many other articles about UT investment. If you see some enlightenment after reading, please feel free to subscribe. I am here to help UT investor to profit for free, as a free time hobby.
Hi im one of the utc. Investments in unit trust is for long term. You are accumulating more unit when the price is gone down. At the end we want more units to convert into cash, At least you need to keep more than10years,
Please be patient is worth save in unit trust. The KPI is just leave it for more than 10 years
My ass long term….. Main point is show me the money ,money ,money………. aka profit
Triple the units after 10 year compare to intial invested units, but unit price take a beating reduce by 3 times, how you make profit with triple units?
That is why I will aim for the funds which Distribution Policy is either Annual or Semi Annual. At least I can see the units grow annually/semi annually
Hi Ian,
I think the unit trust consultant tht you met before is not professional. Some of the ethics consultant will let u understand all tht u mentioned above. They will base on clients financial background n analyze on their risk taking n come out a proposal. Btw, u hv th right to request on all th information tht u wnt to know from them. U hv th right to do so.
Your article is good on some information but not all the contents is truth some of them is misleading the reader .e.g. ur calculation on the charge of the fund to determine the minimum return of the fund tht we shld need to gauge on is wrong. You hv misunderstanding on the 5% sales charge imposed on the fund, it is imposed per transaction basic is NOT annually impose. Annually charge is management free and trustee free which is 1.5 -1.7% and 0.06% , u cnt see the big impact on this bcs the fund return reflected in their report already taking this into account. For more convincing, u nid to using future value calculate and compare it with th FD then you. With the data, u jz can draw a conclusion on them.
Unit trust (here talking abt equity, not the bond and money market) basically is same like investment. It gennerally being diversified in different country, industry or sector. But the beauty of it is it also diversify into the fix income or others security instrument. Unit trust fund normally hv their report shown on their asset allocation. U can easy retrieve it from website or from UTC. For equity fund unit trust it can up n dwn follow th market. Fund picking is important like a company stock picking when u open a CDS account invest for urself.
If you know you cnt go with high risk investment, u cn seek for lower risk like bond and money market. Some bonds will gv the return better thn FD even deducted th sales charge which is 1%, while money market is 0% sales charge.
My advise is dont to be too jeopardize to unit trust eventhoug i understanding ur bad experience with the unprofessional UTC. Every thing have their pros and cons, but makesure u really understand them indepth then just can compare apple to apple. Else, unit trust industry will not longer exist until now. Why it still got demand untill now bcs it still got it value.
One need to understand their investment objective n workout with UTC. Chose a investment or saving plan tht most fit for u.We nid to be a wise consumer. Hv a yearly review if not satisfy u consult them to hlp u switching to potential fund.
For those newbie to unit trust, cn refer to kclau previous post on unit trust which is more concise n not bias.
Wish all cn achieve financal freedom n start early for retirement fund planning. Remember wat the Albert Einstein say the concept of the compiling interst!?
Apparently, you are trying to whitewash the outrages 5% fees and this is no better than “not professional consultant” that you claim.
A 5% sales charges and + 1.65% fees mean that unit trust must earn 11% return just to be par with EPF 6% return. And in a bad year, the unit trust will dip and the 1.65% charges keep burning the investor capitals. If the subsequent year the unit trust cannot recover, the investor already burned capital will vaporise 1.65% and lost the equivalent EPF returns.
I agree with both Grace Tee and Moot. Please do more research before making your claims. Ian. Don’t mislead the public! Please be more professional. Please allow me to give some new insights and truths!
Is there anything wrong paying 5.5% to the professionals to do a portfolio investment? Would you be giving FREE consultation for the services you provide? How much are your clients paying you to manage their funds?
How can you compare an investment scheme with a savings scheme? As unit trust is a long term investment vehicle, why show comparison for a year? Why not show a 10 year comparison? For this issue on investment, I would like you read The Intelligent Investor and books by Benjamin Graham.
Ian, can you invest in a portfolio of PBB, MBB, Disney, P&G, BMW, Apple, Alphabet, Alibaba with just RM100? It is through unit trust that we are able to do that. Isn’t investing in all these companies value investing? Is this what you are promoting?
About EPF members investment scheme, do you know that the scheme was launched in Nov. 1997? If EPF members are losing money and they complain would EPF allow the scheme to continue until now. I am proud to say that EPF has its members’ interest at their heart. That is why they keep raising the Basic Savings for account one? I had been in the investment scheme since day 1 and my EPF monies is now 3X of what I had invested. Not only that, I am enjoying FREE Life and PAPD insurances! Does EPF gives me this extra benefit? If I am not retired I would definitely continue to diversify my EPF monies into unit trust.
For the record, I do not manage funds for people and do not intent to do so in the future.
I believe anyone who has the heart and desire to learn about investing can choose to learn and build their investment portfolio on their own.
It is good to hear that your EPF did well. I’m happy for you.
It is not a fair statement to say that one is a value investor because he invested in PBB, MBB, … etc. Who knows why and what price did he pay for these stocks.
KCLau.com is a platform built to educate, share, inspire and grow. Here, I wrote this article with the intention to share firstly, how the rich invest differently and secondly, highlight to all investors (especially those who are considering unit trusts as their preferred vehicle) to ask questions about fees, PTR and FVF so that all of us have a chance to make informed decision.
From your comments, I felt your ’emotions’. That’s okay. I’m also happy to have people like yourself to voice your opinions on the article. Why? Because it shows that people do care and are concerned about their financial health. But, may I ask: ‘Would it be better if your views / comments are meant to be constructive and educational rather than being offensive & argumentative?
Here’s my feedback. If I write something which is a mistake, I am happy to be corrected as I am still in a learning process. But, if your intention is to lash out your displeasure by writing a ‘hate comment’, I find it a let down.
May I invite all to have a bigger picture?
It is to bring an awareness to people that as ‘consumers of investment products’, we can ask better questions before deciding on it. That’s why, once again, I wrote about FVF, PTR and fees of unit trust funds so that all are aware and may calculate their impact to their own investments.
So, if you enjoy my write-ups, thanks and stay tune for more. Otherwise, please be more considerate when offering feedback. Thanks. Ian.
Ian, are you selling stock broking software?
No
Hello there!
May I just inquire.. I’m considering signing up for the PRS retirement scheme since there’s a benefit of RM 1000 from the government. What do you think of choosing AmBank as the PRS provider and electing the Conservative Fund Class D? I’m only 21 years old but my risk appetite is really low. Not looking for high returns but stable ones even if they’re low, as I’m looking at this long-term investing till retirement.
Are growth funds really worth the risk?
Also would the location e.g. Kuala Lumpur or Johor Bahru, affect my decision (perhaps more competent fund managers in the capital..?)
Would appreciate a quick reply if possible as the deadline to apply is pretty soon.
Thank you so much!
Most funds are well-diversified. Since it is long-term, it is best for you to go with growth fund.
Hi Eli,
It depends on your intentions on investing. If you are attracted to the RM 1000 incentive offered by the gov, then, I suppose any qualified PRS funds should fulfil your objectives, even if the funds are categorised as low-risk.
As written above, you should ask about the PTR and FVF of the fund. A high PTR and FVF fund may indicate that it is into stock trading as the fund tends to buy and sell stocks more often. Actually, in that sense, who knows what you are buying into. To me, it’s just like sending money to a fund manager, hopefully, he is a reliable one who can trade stocks for profits. There are no guarantees to whether you would win over the long-term. Definitely, the PRS fund, whichever you choose, would receive recurring income from managing your money, whether or not, you make any.
If you happened to be one who don’t know what funds to invest, it means, you may not know what you are getting into. Then, an investment into PRS is risky, not because of the PRS fund, but, because you as the investor who are taking risk blindly. A lot of people invest in stuff that they do not know of, thus, lost a lot of money as a result of it. If so, please read on:
You are 21, a relatively young age to start thinking about investing. Indeed, you are an inspiration to many, old and young, and I believe you would do well in life as you start early. It’s good to be conservative for I am one too. At your age, I think, it would be wiser to acquire knowledge, wisdom, insights … not investment products. Learn stuff that can traded for money. Attend seminars, read blogs, go for workshops, and upgrade your skills as an investor.
Tip: Investing is not so much about buying a product. It’s about learning and self-discovery. Your returns on investment (ROI) is dependent on Your Knowledge and Wisdom acquired, so get them.
Regards
Ian
Hello Ian,
Thank you for your tips and advice.
I’ve decided not to rush into PRS since as you mentioned it might be risky to get into something I don’t know about. I’m sure similar incentives will be available via other platforms in the near future.
In the meantime, could you recommend books that can aid in my financial literacy? I’m already an accounting and finance student pursuing ICAEW, but are there any other tips on materials on investing? There are so many in the book store, so kindly recommend some of your favourites that inspired you and helped you understand more!
Many thanks,
Liz
Hi Eli,
You’re welcome.
ICAEW is a good start as you would eventually have an advantage over other investors – accounting skill. It depends how you use this skill as there are many ways to use and benefit from it, apart from getting a job. For instance, I’m a stock investor and rely a lot on my accounting skill that I picked up from ACCA to identify good stocks which are financially sound from bad ones which are not. Without accounting skill, I can’t tell a good stock from a bad one. A lot of people lost tons of money in stocks because they lack accounting skill. So, it’s a good skill set to acquire.
Personally, I like ‘Rich Dad Poor Dad’ and all the ‘Rich Dad’s series’ as they emphasise on financial literacy and investing primarily for cash flows.
If you are into stocks, I recommend ‘Buffettology’ and letters to shareholders by Warren Buffett, which can be easily downloaded for free from Berkshire Hathaway’s website.
If you are into properties, it depends. If you choose to be an accountant, you may read ‘Who Says’ by Mark Chua and ‘WTF 23 Properties by 30’ by Faizul Ridzuan. They have pretty inspiring stories on how a person with a job can build up a portfolio of properties.
Of course, you could be enterprising. Then, read books written by businessmen such as Richard Branson, Donald Trump, … countless of them.
Of course, please do stay tune for more articles at KCLau.com.
Hi im one of the utc. Investments in unit trust is for long term. You are accumulating more unit when the price is gone down. At the end we want more units to convert into cash, At least you need to keep more than10years,
Please be patient is worth save in unit trust. The KPI is just leave it for more than 10 years
Hi Mr. M, thanks for your question. It depends how you look at it. In a glance, it seems worth it as the RM 1,000 you invested would be matched with RM 1,000 by the government. It gives you 100% returns with the catch is that you can’t touch the money as it is under PRS. On top of that, you are entitled with some tax relief from it. You’ll be penalised if you make an early withdrawal on the money.
By looking in-depth at it, it depends on the PRS Fund. It depends on your preference. Usually, people who invest in unit trust are ‘hooked’ in because of promises to achieve capital gains. Very little or no talk about cash flows from them. Most instances, unit trust companies earn stable and regular cash flow from sales charges, management fees and trustee fees from their investment funds.
Let us say, you put in RM 2,000 into PRS. When would you see your money again? But, I’m sure that the PRS operator would earn stable cash flows from all the fees as mentioned above year after year until you see your money again, regardless whether you eventually make capital gain or loss from your PRS fund.
Regards
Ian
Hi , can I ask your advice , I’m qualified to enjoy the PRS Youth Incentive where I’m able to receive an additional RM 1,000 in my PRS fund from the government if I invest at least RM 1,000 in a PRS before end of December this year and yes I’m 29yrs old, my uncle ask me to this well still deciding , sorry I’m noob for this investment word just a small fish , I want to ask after I put 1000 +gov = 2k and I just leave it there to grow up till my retirement day , is that ok and should I go with this PRS ? If any dark side about prs that I don’t know can you tell me, I don’t want to hear only sweet talk but real deal like risk, things like that .
Hi,
I have invested since 2012 totalling close to RM50k but the current market value yields are mere RM4k over there 5 years. Can i conclude that this fund is bad?
Also, my total investment vs return is only a mere 1% gain. Really bad, and unfortunately i did not have time nor a good UTC to advise me since the beginner..I think they are just into capitalizing the charges we have to incur doing UT.
I’ve just read your article after I lost 16% in unit trust. Only I’ve read it earlier I would have decided differently. I bought into a fund supposedly has low risk and has the flexibility to change to different markets or to keep the money in cash or bond. And I asked for 8% return only. But the fund decided to invest in derivative and lost so much in the process. It makes no sense to lose 16% in exchange for possible 8% reward. Also my agent wasn’t monitoring for me. Given the flexibility of the fund I just can’t believe what they just did.
I will never again in my life invest in Mutual Fund. There’s no transparency and the fund managers are probably more invested in their own interests. When we are investing on our own, we can control our risk, choose our pick and cut loss when we don’t feel comfortable, Mutual fund charts are hard to read cos it’s a basket of different things that we don’t know what it is.
i totally agree with you…
KFong,
May I know how long you already invest in mutual funds? 16% lost within one year? Fyi, invest in mutual funds always look at long term. If just 1-3 years, very difficult to see result.
I heard a lot ppl saying it is look for long term , but not short term .
But who can guarantee we can earn a big one in long term.
There is a chance of making loss even in long term right .
Just discussing …
Hehe
Ivan,
I would definitely agree with you. “Long term” investment is not a magic spell for investment profit. For one, there isn’t a definite period of “long term”. You can read some of our readers responses said they have invested for four, nine or ten years and still see their investment at a shocking loss. I also had such an experience myself being an passive investor before I “converted” into an active investor now. I invested into a fund for 10 years and at one day I shockingly discovered that it did not grow at all. You can read my experience here at https://wisefocusblog.com/2018/01/15/the-peril-of-professional-advise/
Profit or loss for your investment is the time when you take a look at your fund performance. If you look at it at good market (bullish) time, you will be cheered up by the profit figure shown there. But if it happened to be bad market (bearish) time, you will faint… like now a 16 % loss. It all because you did not know how and when to take your profit home when they were there showing you. And those profits were all evaporated with the market sinking down. That’s why it is important to learn how to invest even with unit trust. It is not much different than stock investment. The difference is only in the magnitude of profit and loss. We can ‘t afford to be passive and let the fund manager do their “professional” job.
Hi KFong,
I’m an Unit Trust Consultant and I can tell you that unit trust investment is heavily based on the market performance. If you’re coming into the market by year 2018, then big chances that you’re losing money. Please enquire QFR Quarter 4 Year 2018 from your agent and ask him to explain to you. If your agent doesn’t answer you, you may actually required to switch to another servicing agent.
Very simple but articulate reading, thanks
Hi Ian,
I need your guidance here as i dont know what should i do now whether to withdraw or continue.
In Nov 2017, i have invested over 50% of my EPF account 1 into Manulife Unit Trust. As of now it has unrealised loss up to -14%. Should i withdraw now and fire this unit trust? or i should continue to let it sit hoping it will recover one day.
Hi andrew…
I would like to consult you personally..you may call me 013 8019615.tq.
Hi Andrew,
I feel your pain. I also lost 16% recently. It was supposed to be 14% loss but the company delayed my sales for 2 days and it became 16% loss. It’s a very hard decision to make but I decided to cut loss. I don’t think I want to let my money keep sitting there when I don’t trust their company to manage my funds anymore and I can’t sleep at night. They can be reckless for all we know and there’s no transparency. I don’t know why I only see it in hindsight when everything suddenly becomes clear to me. I can’t advise you about your withdrawing decision but moving forward we’re better off knowing what we invest in and to understand the fundamentals of a company. The past week has been hard for me. The decision making depleted all my energy and I could hardly sleep. For myself now mutual fund is a big no no. I don’t care what agents say about “oh you sure can recover and make back all that you lost”. Like yeah right, in 10 years maybe.
Dear Reader,
I’m Ian, a team member of KCLau.com. I received your comment on my article posted on KCLau.com. Thanks for reading my article.
First, I think it is best to know your own unique purposes for investing. Is it for passive income, capital preservation or capital appreciation in the future? While one can invest for all three, but, at the end, it is the priority of the three that defines why we invest and what we would be investing into. Without knowledge of this, it is hard to ascertain what to do next with your investment.
Second, I believe you are adopting a different mindset as compared to the unit trust consultants. That is okay. I believe, if you read my article, perhaps, you would find me very different from a lot of unit trust consultants in the market. The key difference is that – I’m one who invest for cash flow. It does not matter what I invest into, be it stocks or properties. My intention is to derive stable income from them regularly via dividends and rental income. From the perspective of most unit trust consultants, they reckon capital gains. So, clearly, as a cash flow person, I may not speak the same lingo as an unit trust consultant. Therefore, it goes back to the first question: ‘What are you investing for?’ and the answer to it would make it easier for you to decide what you should do with your unit trust investments.
The analogy is this. Why do you raise a cow? Butcher it for its meat? or to Milk it? A butcher is likened to one who invest for capital gain. A dairy farmer is one who invest for regular cash flow. Which of the two are you? A Cattle Rancher or a Dairy Farmer?
I understand, it may not be a conventional ‘What to do’ kind of answer that you may desire. Here, I hope that you are inspired to think ‘Why do you what you intend to do’ before embarking on your next investment decision. Of course, if you have more comments / questions, please feel free to reply this email.
All the best.
Hi KC
My unit trusts are doing badly especially since 2016. I took over my late husband’s account in 2013. I don’t reinvest because i was hoping to enjoy the payouts but the amts have been pittance compared to FD and EPF. I was thinking of selling some but my utc was so pissed off n belittled my opinion….saying that i cannot compare like that and even said i had to change my mentality! He said because my husband reinvested so the capital grew faster but i said that he had already stopped that to take payouts instead and i remember the capital was already a tidy sum plus payouts were equally good. My capital has dipped n payouts are so miserable….i don’t know how long i can sustain. Please advise.
Unfortunately for you that you met an unprofessional Unit Trust Consultant. May I know your investment in under which bank now? I’m currently an UTC from Public Mutual who wish to take over your profile from the irresponsible agent and take good care of your investment.
Please contact me via my contact number 016-5425421.
Thank you.
People always say long term when it comes to UT. How long is long? In my portfolio, i have funds from 2010 (majority all from epf scheme). Cash scheme is from 2013 to 2014 monthly contribution. My cash scheme is negative 11% as of 2020. My epf scheme (the longest 10 years) is getting an annualised of 3%. The rest is negative or profit which is negligible. To sum it, pls dont withdraw from epf and just stick to the good dividends paid by epf. All my frirnds who have invested in UT, most regretted and the only laughing to the bank is the agents. So to those who said long term, sorry to say they are no different than snake oil salesman. Thank goodness i bought some microsoft shares back in 2009 and it beats all my investment portfolio.
Hi KC Lau,
Just need your opinion, if my UT investment in 5 different fund for the past 5 yrs period generate lower return vs EPF return can i conclude that my investment is a wrong investment? If my total return generate approximately 12.8% over 5 yrs period. where as EPF generate constantly above 5.7% . Please advice.
Sounds like it …
The usual strategy to invest in UT is applicable to EPF withdrawal for UT too, such as:
1. Dollar cost averaging: withdraw every quarter when your EPF account is eligible.
2. Portfolio rebalancing by doing switching.
Sometimes, it is due to timing issue, which is hard to predict. But people is optimistic when market is good. However, you should be doing the opposite, when market is down and everyone is panic, it is the best time to withdraw EPF for equity funds.
Hi KCLau,
What do you think about Malaysia government fund of ASNB? Do you think it is better compare to the other UT? It seems like a low risk fund and personally i think that it is about the same as FD. What do you think about it?
Fd tenure is fixed for 1 year. Early withdrawal will incur penalty. On top of that, gains from fd will be taxed at 24%. The alternative to fd is UT money market. Distribution is on monthly basis(investor can opt to reinvest or withdraw the monthly gains). This means it is highly liquid. Anytime can withdraw without being incurred penalty charges, unlike fd. UT money market 1 year interest earned is about 3-3.5% and the gains are not taxable to the investor. The gains are all his.
FD tenure can is as short as one month. FD interest is tax free for individuals, it is only taxable for companies and organisations.
It is true that Money Market fund outperforms FD, but Unit Trust agents rarely promote it as they won’t earn any initial commission from it.
#1
As we all know, unit trust is mid to long term investment. And therefore it is not appropriate to compare it with one year FD or EPF rate. Try comparing it for longer term like 5 or more than 10 years then it makes sense.
#2
Mentioning about FVF, if it’s 0 that means the return is fixed, and it means no risk at all. However, the beauty of investment is that it comes with risk, and that’s when you can get a higher return. Try to read the past performance of UT as reference, by totalling up the gain and loss from previous years can give you an idea on the average return. Again, investing long term is the key and inconsistent return won’t affect much in this case. If annualised return can be 8% for UT, it includes the downside already doesn’t it?
#3
As for PTR, high or low ratio doesn’t define the fund’s performance as the ratio indicates how active the fund manager is trading the fund’s stock. If the market is not doing well on certain sectors, the fund manager has the responsibility to change their allocation in order to preserve the capital. And this is also why management fees incurred. As an unit trust investor, we are INVESTING by holding it long term for the fund managers to do their work.
#4
Seller: Only certain percentage of the sales charge will be paid to unit trust consultant as commission. Trustee fee is for the trustee company and management fee is for fund managers. And these charges are not directly charged from investor but from the fund’s NAV.
Buyer: You don’t gain profit only when the unit price is higher than your purchase cost. During distribution time, you will get to reinvest and accumulate more units in your fund. Even when you lose money during bad times, fund manager still have a chance to declare distribution. Compounding interest then comes into the picture and do the magic for long term investor.
#5
Risk tolerance varies from individuals. Some suggestion:
If you have great investment knowledge and willing to spend your time to do research and monitor your investment, trading in stock market will be a good idea as the investment is under your control.
If you do not possess good investment knowledge or no time to manage your investment, invest in unit trust can be a good start as all you need to do is let the fund manager do the work.
I’m still new in investment field. I invest in both stock market and unit trust as I believe I can gain from both sides in terms of knowledge and exposure. The above is just my opinion and sharing.
In my humble opinion, most of UT in M’sia is mediocre and not worth to put any money. It is better to invest directly in dividend paying company in the stock market. The worse about UT is their sales charge, it is not nominal like brokerage fees. It is better stay away from UT.
Why not try online UT platform such as fundsupermart.com.my or eunittrust.com.my? Their sale charges are unbelievably low. Good thing investing DIY online is that you can learn a lot about real investment. You will have the hope of seeing compounding growth of your capital. More reading please go to … https://wisefocusblog.com/2017/07/10/7-strategic-reasons-why-investing-through-fundsupermart-unit-trust-is-a-better-choice/
I offer free write up for market analysis, investment strategy, as well as money management tips. Welcome to take a look at that webpage.
Thanks for your sharing ?
V informative….tnks
Totally agreed ! Very informative.
This is a more justified reply. Frankly, I think the author’s comment is grossly bias. Unit trust is a long term investments instrument. It’s not fair to cainpare FD over 1 year.
This is the best reply I have read here…..thus far
Hi KCLau, I live in Jamaica small island. But I don’t have much knowledge of the stock market, however I’ve invested in a portfolio unit trust account. What I wanted to know is if I make monthly deposit in these accounts, in what way would they be affected? I really need your reply. As I’m new to this whole unit trust.
Hi Anna, that is like dollar cost averaging when you do fixed regular investment in unit trust.
Search the term “dollar cost averaging” to learn more.
Hi Mr Lau,
It appears most UT funds touts high Annual Performance percentage in a year, but their actual dividend distribution (which is the ROI) in a year is a much lower percentage. This provides incorrect perception, as investors are attracted to good performing UT funds, but later they may realise the UT’s actual dividend distribution is much lower. What is you view on this?
Also, may I know where actually we can find the historical dividend distribution of a particular UT fund since its inception?
UT do distribution mainly to reduce the unit price to appear affordable, not like stocks that actually pay dividends.
Major sites like MorningStars do provide past performance of unit trust. Or you can always download the latest report from the fund houses.
Hi,
I have a question on switching Unit Trust(UT). If the UT financial years ends at April every year and i want to do switching portion of the UT to other UT within the same fund manager, i will not get the dividend from the previous UT?I want to diversified my UT to same fund manager but different UT.
The dividend is not not extra income. Technical term is “distribution”. It is just slicing the unit smaller. So there is no financial effect whether you get the distribution or not.
How to contact u, can u leave phone number
Definitely true! UT investors better wake up… do not let some fund houses use this free advertisement tactics to attract you into buying their funds.
Great insight from you bro. I’m still green in the unit trust and opt for PRS before my 31st birthday this year. Well at least i need to start from somewhere for my retirement purpose. Thanks for sharing with us, the greener ones..
Hi Adibah, thanks for the question. EPF pays out above 6% in dividend yields. FD pays 3% in interest rates. As to unit trust funds, I don’t know. It depends on which fund or funds do you choose. But, one thing is for guarantee which is: You’ll incur fees (sales charges, trustee & management fees) for investing in any unit trust funds and there is no guarantee of profits for these funds. So, you may need to learn how to pick one where it has potential to generate good returns to pay off these fees. The article above gives you a good guidance on what you need to be aware of when choosing a unit trust fund as, in most cases, mutual fund sales rep won’t tell you about them. For me, personally, I find dividend stocks to be a much viable alternative as it is a lot cheaper in terms of fees & less complicated as an investment than most unit trust funds. Ian.
Hi, between Unit Trust n Fixed Deposits, which is a better investment for someone looking to park his EPG savings?
Hi Adibah, I am a unit trust consultant, I am more than happy to assist you in explaining our product. If you would like to know more, feel free to contact me via sitifatimahmn@gmail.com