Unit Trusts in Malaysia

Money Maniac — Mon, 25 May 2009 10:21:18 +0000

Unit trust is a form of shared investment constituted under a trust deed. It is a pooled investment, which is an open-ended investment which will get bigger if people invest in it and getting smaller when investors pull out their investment. Unit trusts give you the chance to group your money with that of may other investors like you to buy shares in a range of different companies, and some invest in fixed interest stocks. The value of the total invested is divided into units and as an investor, you will receive a number of units representing your part in the fund. The price of your units will rise and fall in line with the value of the underlying investment held. As the investment is spread across many stocks and shares, the investment risk may face the same.

Based on fmutm.com.my, in Malaysia, Unit Trust was first make well known in 1959. Until 1979, Unit Trust faced a slow growth as it is a new investment product and public still taking the caution step before involved with it. There are only 5 Unit Trust management companies at the time, which are Registrar of Companies, The Public Trustee of Malaysia, Bank Negara Malaysia and the Ministry of Domestic Trade and Consumer Affairs. During the 80s, the government took a leap in forming a committee to regulate the unit trust industry, called the Informal Committee for Unit Trust Funds, which consist of Registrar of Companies (ROC), the Public Trustee of Malaysia, Bank Negara Malaysia (BNM) and the Capital Issues Committee (CIC). During this period also, Amanah Saham Nasional (ASN) was introduced by Permodalan Nasional Berhad (PBN). On top of that, subsidiaries if financial institution started to involved in Unit Trusts. During the 90s, Malaysia faced a high pace of growth in terms of both new management companies and funds. Everything seems to be in positive increment except during the financial crisis 1997-1998. During the 21st century, everything looks promising, until the final quarter of 2008 where the Net Asset Value (NAV) suffered a decline due to the global economic downturn. Nevertheless, the drop is much less severe compared to the share prices in Malaysia.

As at 30th April 2009, there are 39 approved Unit Trust Management Companies which handle Unit Trust Funds. To check out these companies, please click LIST OF APPROVED UNIT TRUST MANAGEMENT COMPANY IN RELATION TO UNIT TRUST FUNDS, which was taken from Securities Commission Malaysia website.

Meanwhile, as at 30th April 2009, there are 536 launched funds related to Unit Trust Funds. Again, you may check it at LIST OF LAUNCHED FUNDS IN RELATION TO UNIT TRSUT FUNDS, which also taken from Securities Commission Malaysia website.

Lastly, to check out the daily prices update, you may visit TheStarOnline- Unit Trust.

3.33 Billion Units Amanah Saham Malaysia (ASM) and 2 Billion Units Amanah Saham Wawasan 2020 (ASW 2020) Units Permodalan Nasional Berhad (PNB) will offer an additional Malaysia (3.33...
Bonds & Guarantees in Malaysia In simple words, Bond is a transaction whereby Investors or...
Making Easy Money, REMINDER! No doubt that people are searching for an easy way...

Related posts brought to you by Yet Another Related Posts Plugin.

Money Mania » Unit Trust

Unit Trusts in Malaysia