Unit Trust 101: What is it? How does it work? Is it safe?
Here’s what you need to know about Unit Trust and why they're a popular type of investment in Malaysia
Unit Trust is an investment pool managed by Fund Managers licensed by the Securities Commission
Malaysia. Investments are typically charged a one-time fee when they purchase a Unit Trust and have
annual fees to cover the cost of running the fund thereafter.
Unit Trust funds can be segregated based on their asset classes. An asset class is a group of investment
instruments that share the same characteristics and regulations.
Before you start investing, it’s essential to assess your investment goals and risk tolerance.
When you’re ready to invest, you can choose from various types of asset classes such as:
money market funds, bond funds, mixed asset funds, and equity funds.
These funds invest into highly liquid bank deposits and short-term corporate debt instruments. The debt instruments are typically issued by governments, banks and stronger credit rated corporations. Hence, money market funds have relatively lower risk, but provide stable returns.
These funds invest into debt instruments issued by governments, banks, and companies that are either higher quality (investment grade), or lower (high-yield). The coupons received from these instruments are usually distributed as income to investors.
Affordability
You can start investing
in Unit Trust from as
low as RM50.
Professionally-Managed
You get to enjoy the rewards of
a Fund Manager's expertise and
experience, who will spread out
your investments across asset
types and geographies.
Liquidity
You can easily buy and
sell units at any
point in time.
Use the Financial Goal Simulator to get a clear picture of what it will take to reach your investment goals.
Your investment goal target amount
in
RM0.00
To achieve your investment goal, you have to make a monthly investment of
RM0.00
Here’s our recommended portfolio for you to achieve your investment goal.
Allocations:
Note: You may customize the asset class allocation based on your needs and risk appetite.
Quick view on your investment journey
0 years
Your potential returns based on your capital of RM0.00:
Best outcome: RM0.00(+85.89%)
Average outcome: RM0.00(+85.89%)
Worst outcome: RM0.00(+85.89%)
Disclaimer
1. The projected returns displayed are derived from past performance and are not guaranteed for future returns.
2. These projections are solely intended for illustration purposes and do not take into account fees that may apply.
3. All returns are expressed in Malaysian Ringgit (MYR), unless otherwise stated.
4. Investors should carefully consider investment objectives, risks, charges and expenses and if need be, seek independent professional advice.
To invest, you will need to have
a Current or Savings Account with us.
Our newly launched digital platform allows you to easily buy, sell, or switch Unit Trust funds through Hong Leong Connect Online Banking at any time, without the need to visit a physical branch.
For all fees and charges, please visit here.
The returns on Unit Trust investments are not guaranteed. Unit Trust do not constitute bank deposits or obligations nor guaranteed by the bank and are subject to investment risk, including possible loss of principal amount invested.
Your insured deposit(s) will no longer be protected by PIDM if transferred to non-PIDM covered institutions or accounts such as Unit Trusts.
Most Unit Trusts have a benchmark to compare their performance against. In simplified terms, a fund is doing well if it consistently outperforms its benchmark. However, since different Unit Trusts have different benchmarks, one way to compare performances between two Unit Trusts is to compare their returns, with higher consideration given to longer periods as Unit Trusts are relatively long term investments (at least 3 years or more). Nevertheless, past performance may not be an indicator of future performance and market environments may impact Unit Trusts differently depending on the assets they carry.
Because Unit Trusts are easily liquidated, unit holders may redeem all or part of their units on any business day and the Unit Trust manager will purchase them. This means that should you need cash, you can easily sell the investment. Most Unit Trusts will allow you to redeem your investments on any given business day. However, keep in mind that you might make a loss in the event that the Unit Trust is sold at a lower price compared to the point of purchase (prices of Unit Trust may shift upwards or downwards depending on the value of the assets they carry).
Warning:
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 investment risks, including the possible loss of principal amount invested. Unit Trusts Schemes are not protected by Perbadanan Insurans Deposit Malaysia (PIDM).
All information provided above is for reference only. While all reasonable efforts have been made to ensure that the information provided is accurate and up-to-date, the Bank does not warrant or guarantee the accuracy, completeness or timeliness of the information or data provided. Neither the Bank nor its information providers shall be held responsible or liable for any errors, delays or inaccuracy of the price, data or information provided herein nor for any loss or damage arising directly or indirectly from any action taken in reliance on the information provided herein.
Money withdrawn from your insured deposit(s) is no longer protected by PIDM if transferred to a non-deposit account. eg. Unit Trust, Bond, Dual Currency Investment (DCI), Negotiable Instrument of Deposit (NID) and Floating Rate Negotiable Instrument of Deposit (FRNID), Structured Investment, ASNB, Investment Account-i etc.
Learn, invest and grow with
Fresh Take
Here is some information to help you get started.
Gain valuable insights on Unit Trust Funds curated by our team of expert analysts
and identify potential money-making opportunities for you.
To invest, you will need to have
a Current or Savings Account with us.
Our newly launched digital platform allows you to easily buy, sell, or switch Unit Trust funds through Hong Leong Connect Online Banking at any time, without the need to visit a physical branch.
For all fees and charges, please visit here.
The returns on Unit Trust investments are not guaranteed. Unit trust do not constitute bank deposits or obligations nor guaranteed by the bank and are subject to investment risk, including possible loss of principal amount invested.
Your insured deposit(s) will no longer be protected by PIDM if transferred to non-PIDM covered institutions or accounts such as Unit Trusts.
Most Unit Trusts have a benchmark to compare their performance against. In simplified terms, a fund is doing well if it consistently outperforms its benchmark. However, since different Unit Trusts have different benchmarks, one way to compare performances between two Unit Trusts is to compare their returns, with higher consideration given to longer periods as Unit Trusts are relatively long term investments (at least 3 years or more). Nevertheless, past performance may not be an indicator of future performance and market environments may impact Unit Trusts differently depending on the assets they carry.
Because Unit Trusts are easily liquidated, unit holders may redeem all or part of their units on any business day and the Unit Trust manager will purchase them. This means that should you need cash, you can easily sell the investment. Most Unit Trusts will allow you to redeem your investments on any given business day. However, keep in mind that you might make a loss in the event that the Unit Trust is sold at a lower price compared to the point of purchase (prices of Unit Trust may shift upwards or downwards depending on the value of the assets they carry).
Warning:
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 investment risks, including the possible loss of principal amount invested. Unit Trusts Schemes are not protected by Perbadanan Insurans Deposit Malaysia (PIDM).
All information provided above is for reference only. While all reasonable efforts have been made to ensure that the information provided is accurate and up-to-date, the Bank does not warrant or guarantee the accuracy, completeness or timeliness of the information or data provided. Neither the Bank nor its information providers shall be held responsible or liable for any errors, delays or inaccuracy of the price, data or information provided herein nor for any loss or damage arising directly or indirectly from any action taken in reliance on the information provided herein.
Money withdrawn from your insured deposit(s) is no longer protected by PIDM if transferred to a non-deposit account. eg. Unit Trust, Bond, Dual Currency Investment (DCI), Negotiable Instrument of Deposit (NID) and Floating Rate Negotiable Instrument of Deposit (FRNID), Structured Investment, ASNB, Investment Account-i etc.