FREQUENTLY ASKED QUESTIONS
UNIT TRUST
1. Why choose Unit Trust Funds?
2. What should I consider before investing in Unit Trusts?
3. How do I select the best unit trust funds?
4. Who is Affin Fund Management Berhad (AFMB)?
5. Is there any assurance that I will not lose my principal when investing in AFMB's Funds?
6. What is the return that investors could expect when investing in AFMB Funds?
7. Is there any update sent to me on my investment account?
9. Who to call if I have queries?
10. Why should I invest with AFMB?
11. What is the best way to optimize profit when investing in Unit Trusts?
1. Why choose Unit Trust Funds?
With the proliferation of various types of investment products in
recent years, people often look for a straightforward, professionally
managed investment opportunity that caters for basic investment needs.
AFMB has succeeded in meeting those needs with its unit trust funds.
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2. What should I consider before investing in Unit Trusts?
Before investing, decide what you want your investments to do.
Investing is simply using money to make more money. Investment monies
are not meant to be used for daily living essentials.
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3. How do I select the best unit trust funds?
There are many unit trusts funds from which to choose, but if you
have considered the type of fund or funds most likely to meet your
needs, you have already narrowed down your choices considerably.
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4. Who is Affin Fund Management Berhad (AFMB)?
Affin Group is a member company of Lembaga Tabung Angkatan Tentera (LTAT) group of companies through a direct holding in a public listed company, Affin Holdings Berhad.
The Affin Group is the financial services arm of LTAT that offers a wide spectrum of professional financial services ranging from commercial and investment banking, general and life insurance, stock and money broking, insurance broking, fund and unit trust management.
Affin Fund Management Berhad (AFMB), a wholly owned subsidiary of Affin Investment Bank Berhad was incorporated 18 April 1975 and began operations on 1 April 1997. Following the rationalization of its fund management and unit trust business on 1 July, all businesses and employees of subsidiary company Affin Trust Management Berhad had been transferred to AFMB. The consolidation of the asset management and the unit trust business under AFMB enabled the new entity to manage both corporate and retail funds.
AFMB is a licensed fund manager under the Capital Market and Services act 2007 and also an approved Unit Trust Management Company. AFMB has an authorized RM25 million divided into 25 million ordinary shares of RM1 each and paid up capital of RM12 million divided into 12 million ordinary shares of RM1 each.
AFMB's assets under management, which comprise of unit trust
funds as well as corporate and retail discretionary clients' funds
stood at RM618.345 million as at 1 March 2010. Currently AFMB manages 7
unit trust funds namely 1) Affin Equity Fund; 2) Affin Capital Fund; 3)
Affin Money Market Fund 4) Dana Islamiah Affin; 5) Affin Islamic Equity
Fund and 6) Affin Islamic Money Market Fund and 7) Affin Tactical Fund.
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5. Is there any assurance that I will not lose my principal when investing in AFMB's Funds?
In any investment, there is a risk involved. Even so, the
opportunity for investment growth that is possible through investments
in unit trust funds far exceeds the concern over risk for most
investors.
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6. What is the return that investors could expect when investing in AFMB Funds?
The type of return depends on the objective of the fund. The potential returns of AFMB Funds are as follows:-
You may refer to the Lipper Fund Table published in The Edge
weekly paper for the updated Funds performance.
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7. Is there any update sent to me on my investment account?
We will be sending to you our annual and interim Statement of
Transaction together with the Fund's financial report to update you on
your investment account with AFMB.
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It depends on your investment objective. Some funds, especially
equity funds may experience short-term turbulence due to market
volatility. If you see the recovery potential in that fund, you may
choose to hold on. Your investment would rebound when the market
recover. You may also choose to exit from the fund if your investment
appetite changes over time by switching to another fund that suits your
risk appetite, for AFMB Funds, switching is free of charge.
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9. Who to call if I have queries?
You may refer to any of our Institutional Unit Trust Adviser
(IUTA) or call our Customer Service at 03-2027 5800 between 8:30am -
5:30pm, Mondays to Fridays for any assistance. We will try our utmost
to revert to you as soon as possible.
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10. Why should I invest with AFMB?
AFMB's funds are professionally managed and care for all level of investors; novice and the more adventurous alike. Choose from any of our funds with the help of our professional consultant.
AFMB has more than 10 years experience in investment management
and is a multi-disciplinary Asset Manager with proven track records.
Your journey into more financially secure future begins with AFMB.
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11. What is the best way to optimize profit when investing in Unit Trusts?
Investors who do not wish to be stressed by market volatility adopt dollar cost averaging method for improving long-term investment planning. Instead of investing all your money in one go, you invest a set amount of money at regular intervals quarterly or monthly for example regardless of market swings.
By adopting dollar cost averaging, you will be less tempted to make decisions based on short-term phenomena. You benefit from market swings in both ways. This approach is best viewed as a method to separate emotions from the investment processes. Instead of trying to time the market in response to greed or fear, you invest on an installment plan with the view that your money will grow over the long-term.
Consider the following hypothetical example Mr. X adopts dollar-cost averaging and has been buying unit trust A regularly at a constant amount of RM2,000 per month over the entire period. Mr. Y invests at one time all his money in unit trust A. Refer to Table 1 for details.
Mr. X enjoys a 5% profit from his investment while Mr. Y made a
lost of 6% when both redeem their investment at RM0.85. From the above
example, the rationale is - steady investments let you purchase more
units when the prices are low and less when the prices are high. In
other words, you even out the risk of buying at the peaks and selling
at the bottoms. The technique does not automatically guarantee a profit
or protect against a loss, but it usually results in a lower average
cost per unit over time, and as an investor, you may redeem once your
investment generate the target profit set by you.
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- FAQ - Asset Management
- FAQ - Unit Trust
