Investing Made Easy
With Unit Trust.

Unit Trust is a form of collective investment that allows investors with similar investment objectives to pool their funds and invest in a portfolio of shares or securities managed by professional fund managers.

Unit Trusts are managed by professional and full-time fund managers from financial institutions referred to as Unit Trust Management Companies, which are authorised to issue and offer unit trust schemes.

The professional fund manager will invest the pool of funds in a wide range of asset classes including equities, fixed income, money markets, real estate, commodities and/or other alternative assets depending on the fund’s mandate.

Alliance Bank distributes a wide range of unit trust funds, including:

• Conventional and Islamic unit trust funds: These funds are open to all investors. They invest in a variety of assets, such as stocks, bonds, money market instruments, commodities and/or other alternative assets depending on the fund’s mandate.
• ASNB unit trust funds: These funds are managed by Amanah Saham Nasional Berhad (ASNB), a government-owned investment company. They offer a variety of funds with different investment objectives and risk profiles.

Here are the types of unit trust funds distributed by Alliance Bank:

• Growth Fund: This fund aims to achieve long-term capital growth by investing in a diversified portfolio of local and/or global equities.
• Income Fund: This fund aims to provide a regular income stream by investing in a diversified portfolio of local and/or global fixed income securities.
• Money Market Fund: This fund aims to preserve capital by investing in short-term money market instruments.
• Fixed Price Fund: Units of the Funds are transacted at all fixed price of RM1.00 a Unit. As such, it is not necessary to value the Units on each Business Day.
• Variable Price Fund: Funds in which the unit price will fluctuate in value in accordance value of the underlying assets.

The specific unit trust fund that is right for you will depend on your investment goals, risk tolerance, and time horizon. It is important to do your research before investing in any unit trust fund.

You must be at least 18 years old to invest in unit trust. You can visit our Alliance Bank branch and speak to our Unit Trust Consultant (UTC) about the documentation required to open an investment account. If you are investing in a unit trust fund for the first time, you will also need to complete an Investor Suitability Assessment (ISA). This assessment will help you to determine the right unit trust fund that meets your goals and risk tolerance.

Once you have completed the ISA and opened an investment account, you can start investing in unit trust funds. You can invest a lump sum amount or make regular investments. The minimum investment amount depends on the unit trust fund that you choose.

Some of the risks associated with investing in unit trusts include:

• Market risk: The value of unit trusts can fluctuate with the market, so there is a risk of losing money in the adverse market conditions.
• Currency risk: If you invest in a unit trust that invests in foreign assets without currency hedging strategies, you are exposed to currency risk. This means that the value of your investment could go down if the value of the foreign currency goes down against your fund currency.
• Interest rate risk: If you invest in a unit trust that invests in bonds, you are exposed to interest rate risk. This means that the value of your investment could go down if interest rates go up.
• Liquidity risk: Some unit trusts may be illiquid, meaning you may have difficulty redeeming the units.
• Fund manager risk: The performance of a unit trust depends on the skill and experience of the fund manager. If the fund manager makes poor investment decisions, the value of your investment could go down.
• Tax risk: The tax treatment of unit trusts can vary depending on the country where you are investing. It is important to understand the tax implications of investing in unit trusts before you invest.

It is important to remember that all investments carry some risk. However, by understanding the risks involved, you can make informed decisions about your investments.

Strategies to diversify your investments with unit trusts include:

• Investing in different asset classes such as stocks, bonds, money market funds, real estate, commodities and alternative assets. Different asset classes tend to perform differently at different times, so by investing in a variety of asset classes, you can help to diversify your risk.
• Investing in different regions such as local, regional and global markets. Different regions have different economic growth prospects, so by investing in a variety of regions, you can help to diversify your risk.
• Investing in different sectors such as technology, healthcare, consumer staples and industrials. Different sectors are affected by different economic factors, so by investing in a variety of sectors, you can help to diversify your risk.
• Investing in different investment styles such as actively managed funds and passively managed funds. Actively managed funds try to outperform the broad market, while passively managed funds track an index. By investing in a variety of investment styles, you can help to diversify your risk.

It is important to remember that diversification is not a guarantee against loss. However, by diversifying your investments, you can help to reduce your risk and improve your chances of achieving your investment goals.

The minimum investment amount for unit trust funds varies depending on the fund. For retail funds, one can start to invest from as low as RM100. The minimum investment amount for ASNB unit trust funds is RM10.

There are also associated fees with unit trust funds, such as management fees, trustee fees and transaction fees. The specific fees associated with a unit trust fund will be disclosed in the fund's prospectus. It is important to read the prospectus carefully before investing in any unit trust fund. The prospectus is issued by Unit Trust Management Companies and covers the fund’s investment objectives, strategies, risks and other material information.

Yes, you can make regular contributions to your unit trust investments in Malaysia. This is called a Unit Trust Regular Savings Plan.

To set up a regular savings plan, you will need to open an investment account with Alliance Bank. You can do this at our Alliance Bank branch. Once you have opened an investment account, you can start making regular contributions to your chosen unit trust fund.

The minimum amount for regular contributions varies depending on the fund. You can set up your regular contributions to be paid automatically from your bank account.

Regular contributions are a great way to save for your financial goals. By making regular contributions, you can take advantage of the power of compounding. Compounding is the process of earning interest on your interest. This can help your investment grow over time.

Here are some ways to stay updated on the best-performing unit trust funds:

• Read financial publications: Financial publications such as newspapers, magazines, and websites often publish articles on the performance of unit trust funds.
• Use online investment research tools: There are a number of online investment research tools that can help you track the performance of unit trust funds. These tools can show you the historical performance of funds, as well as their current ratings and rankings.
• Follow fund managers: You can follow the performance of fund managers by reading their biographies and performance track records. You can also read their investment commentaries to get insights into their investment philosophy.
• Talk to licensed Unit Trust Consultants (UTCs): The UTCs can help you stay informed on the best-performing unit trust funds. They can also help to propose the right funds to meet your investment needs, risk tolerance and time horizon.

It is important to note that past performance is not a guarantee of future results. When choosing unit trust funds, it is important to consider your investment goals, risk tolerance and time horizon. You should conduct your own research before investing in any fund.

Yes, you can. All EPF Members above 18 years old can open an investment account to invest in EPF- qualified unit trust funds. You are allowed to invest up to 30% of your total savings in excess of your Basic Savings required in Account 1. The minimum investment amount is RM1,000.