Unit Trust as Wealth Accumulation Tool

Unit Trust Industry

2011 Till 31/10/2012

18% growth
NAV = RM 250 billion Source : http://www.theborneopost.co m/2011/12/14/robust-growthin-unit-trust-industry/

NAV = RM 296 billion Source : Securities Commission Malaysia

Who?
People who have a long-term investment horizon

but do not have either the time, desire, or expertise to invest directly in financial markets. Smaller, 1st time investors - broadly diversified portfolio with a small amount of money. Larger investors - access to the expertise of professional investment managers.
Investors - the range of age 20-40, we have a very

long time horizon to invest using our EPF

Testimonials
Bullish period : 20 25% gains (April 2010)

Bearish period : 5 10 % gains

Long term investment gains: 6.95%

An investor who religiously withdrew his EPF money every three months to invest in unit trusts in the last 11 years, starting in year 2000. When he reviewed his investment in August this year due to the recent market turmoil, he was glad that his unit trust investment using his EPF yielded 6.95% compounded return.
http://thestar.com.my/news/story.asp?file=/2011/9/30/sarawak/9603071&sec

=sarawak

How it works?
Long term investment Equity & Bond

unit trust RM 1000 Switching

Case A: Market is booming
Year 1 2 3 4 Type Equity Equity Bond Gains 20% 20% 5% NAV RM 1200 RM 1440 RM 1512 Year 1 2 3 4 5

Case B: Market is weak

Type Equity Bond Equity Equity Equity Gains -20% 8% 30% 25% 5% NAV RM 800 RM 864 RM 1123 RM 1404 RM 1474

Equity : 212% within 5 years Gain 30% RM 1965

Gain : 47% within 5 years

Benefit to invest in Unit Trust

Low risk as it invests in many different sectors or

asset allocations (diversification) Managed by professional fund manager More liquid than share Chance to invest in bond market or foreign stock market, where normal individual investors cannot invest into. Advantage of compounding

Closing Thank You