When it comes to investing in Malaysia, you have several options to choose from. Among the types of investment options available is Unit Trusts, which have gained popularity among investors due to their unique structure and numerous benefits.


Our take? Unit Trusts can be an attractive option if you’re looking to invest in the financial markets without directly purchasing individual stocks or bonds.



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What are Unit Trusts?

Unit Trusts are investments that pool money from various investors to create a diversified portfolio of assets. These assets can include bonds, money market instruments, and other securities. 


By spreading the risk across multiple investments, Unit Trusts provide a more stable and accessible investment environment for individuals looking to grow their wealth. 


The concept of a Unit Trust involves investors purchasing units in the trust, which represent their proportionate ownership of the underlying assets. They are managed by professional fund managers who make investment decisions on behalf of the investors.

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What are the types of Unit Trusts?

There is a wide range of Unit Trust options catering to different risk appetites and investment objectives. 


The main types of Unit Trusts available in Malaysia include:


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Equity funds
  • Primarily invest in stocks
  • Aims for capital appreciation over the long term


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Bond funds
  • Focus on fixed-income securities like government or corporate bonds
  • Can provide stable returns and income


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Money market funds 
  • Invest into highly liquid bank deposits & short-term corporate debt instruments
  • Lower risk and provides stable returns 
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Mixed assets funds
  • Diversified assets which could include stocks, bonds, commodities and currencies
  • Delivers decent returns with risk protection 
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What are the risks and returns?



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  • Be aware of market volatility, which can cause the value of your investments to fluctuate


  • Some Unit Trust may have liquidity risk, where certain assets within the fund may be challenging to sell quickly at favourable prices
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  • Generated from two main sources:

1. Capital appreciation due to an increase in value of the underlying assets 

2. Dividends/interest income earned by the fund

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How does Unit Trust compare to other types of investments?



It's essential to consider the risk profile, investment horizon, and financial goals before choosing the most suitable investment option.


Here is how Unit Trust stacks up against a few common types of investments:



Unit Trust Stocks
More passive approach due to professional management by fund managers Appeals to investors seeking hands-on involvement



Unit Trust Real Estate

Offers higher quality and flexibility, allowing investors to buy or sell units quickly at the prevailing net asset value

Can provide a steady income stream and long-term appreciation but requires substantial capital and active management



Unit Trust Exchange Traded Funds
Investors can access specialised asset classes, allowing for more precise alignment with individual achievement goals and risk profiles Investments funds traded on stock exchanges that provide diversification, lower costs, transparency, and intraday trading flexibility




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How do I start investing in Unit Trust?

As you seek to achieve your financial

objectives, Unit Trusts offer a compelling

solution by providing diversification, reducing 

risk, and offering the expertise of skilled

fund managers.  


With Hong Leong Bank, individuals can start

investing in Unit Trust starting with just RM50. 

Investors can easily buy, sell, or switch Unit Trust

funds through HLB Connect at any time, without

the need to visit a physical branch. 

Ready to take the first step towards accessible

and expertly managed investing? Visit our website

 to learn how you can get started with just RM50. 




This article is part of Hong Leong Bank's educational series, called 'Fresh Take'. Here, we seek to present you a fresh, unbiased perspective of all matters financial. We'll be uploading more educational content moving forward, so do watch out for the next piece.


In a world that's awash with information that may be either true, false or anywhere in between, Fresh Take aims to cut through the clutter, and help you on your journeyas an investor who's seeking to build a strong financial future.


Please reach out if you need to know more or need personalised help.







New to the bank? Scan the QR code below to apply for an account before you begin investing with us.



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