Thursday, April 14, 2011

Unit trust business

 Benefits of investing in Unit Trust :

Provides potentially higher return compared to Savings, Fixed Deposits or EPF return over mid to long term ( which is a minimum of 3-5 years and beyond).
An ideal investment vehicle for Education, Retirement Planning and even for your biz nest egg.
Minimized risk through diversification – ‘don’t put all your eggs in one basket’
Min RM1000 to start up for investing in Unit Trust
CWA is the ready buyer when investors need cash. Do not need to worry that there’s no “buyer” for your investment.
All funds are managed by qualified professional fund managers so it gives you comfort in knowing that your hard earned money is in reliable hands.
Historically, UT provides reasonably good returns over the long term compared to EPF, FD and Savings accounts.

Unit Trust As A Business
In Malaysia, there are 39 UTMC managing 557 funds with 249 billion units in circulation and 13.2 million accounts. The total fund size is only RM150B which only accounted 19.95% of Bursa Malaysia’s Market Capitialisation and targeted to grow to 40% by year 2020. As you can see, there is a huge market potential in this industry. 

From this slide, you can see that the Assets under management in Unit Trust only accounts for 19.95% of the Bursa Malaysia Market Cap and it is targeted to double up in 10 years by 2020. At the same time, developed countries like Australia, Japan & USA  and their Asset Under Management as a percentage of market cap is higher. Similarly, developing countries like India also stands higher compare to Malaysia. There is ample growth prospects for Unit Trust in Malaysia.


In total Malaysians save RM865billion sitting in Savings, FD & EPF which earns about 4.5% to less than 1%.
This is a huge market potential for us to tap on for Unit Trust investments. 

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