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Unit Trust

Unit Trust is an investment scheme that pools money from many investors who share similar financial objectives, investment strategy and risk tolerance.

The pooled fund will then be invested by professional investment management companies in a diversified portfolio of authorized investments, on behalf of investors.

Authorized investments are Securities Commission (SC) approved stocks, bonds, commercial papers, government securities, treasury bills which includes direct business ventures, unquoted securities, foreign securities etc.

There are various types of fund with different objectives, investment strategies and level of risk involved. To determine the types of fund that are suitable for you, you need to consider the following factors:

  1. What are your investment goals?
  2. How long do you plan to invest?
  3. What kind of returns are you looking for?
  4. What is the risk level you can tolerate?

Generally, there are the few types of unit trust fund available in the market:

Equity Fund Invests mainly in shares traded on either local and or foreign stock exchange, with high risk level
Balanced Fund Invests equally in equities and fixed income instruments (bond & money market), with moderate risk level
Bond Fund Invests mainly in bonds & other debt securities, with low risk level
Money Market Fund Invests mainly in money market instruments (short-term treasury bills that are generally not accessible to individual investors), with low risk level
Structured Fund Invests mainly in structured notes that acquire highly rated zero coupon securities that are sufficient to repay 100% of the principal amount of the structured notes on maturity date (normally 3 years). The net proceeds from the structured notes are first allocated for the purchase of zero coupon securities whilst the balance goes into the fund investment with objectives to generate returns

Disclaimer:

This document is not intended to be an invitation or offer for subscription of Unit Trusts nor does it amount to a solicitation by the bank for subscription of Unit Trusts by anyone. Investors are advised to read and understand the contents of the prospectus before investing. Investors should note that there are fees and charges involved in the purchase of Unit Trusts. Investors are advised to consider the fees and charges involved before investing and consult their licensed financial or other professional advisors, if in doubt about any feature or nature of the fund. Please note, the price of units and dividends payable, if any, may go up or down. Past performance of a fund is not an indicator of its future performance. The returns on Unit Trust investments are not guaranteed and Unit Trusts do not constitute bank deposits or obligations nor guaranteed by the bank and are subject to investments risks, including the possible loss of the principle amount invested. Unit Trusts Schemes are not insured by PIDM.

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