grow your wealth invest in ut (final)6% 8% 10% 12% 5 years 10 years 15 years 20 years 133,823...
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Strictly for internal circulation and training purpose only
Grow Your WealthInvest in Unit Trust
Presented byDATO’ MAHATHIR BIN BADRUL ZAMANGroup Agency ManagerRHB Asset Management Sdn Bhd
For internal circulation and training purposes only
Private & Confidential. For internal circulation & training purposes only.
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This presentation slides is strictly private, confidential and personal to its recipients andshould not be copied, distributed or reproduced in whole or in part, nor passed to anythird part.
This presentation slides has been prepared by RHB Asset Management Sdn Bhd(“RHBAM”) and is solely for training purposes only. It may not be copied, published,circulated, reproduced or distributed in whole or part to any person without the priorwritten consent of RHBAM. In preparing this presentation slides, it has been based oninformation obtained from sources believed to be reliable and in good faith. Theinformation contained herein is based on certain assumptions, information and conditionsavailable as at the date of this document. No representation or warranty, expressed orimplied, is made by RHB Asset Management Sdn Bhd nor the acceptance of anyresponsibility or liability is made as to its accuracy and completeness of the informationcontained herein.
The information contained herein should not be intended to be relied upon as a forecast,research or investment advice and is not a recommendation, offer or solicitation forpurchase or sale of any products mentioned herein or to adopt any investment strategy.Expressions of opinion contained herein are subject to change without notice and shouldnot be taken as advice.
All rights reserved.
DISCLAIMER Page | 2
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Private & Confidential. For internal circulation & training purposes only.
Note: The above are for illustration purposes only and the views/opinions in this document are those of RHBAM and are subject to change
I N F L AT I O NSi lent ly Robbing You Of Your Purchasing Power
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Private & Confidential. For internal circulation & training purposes only.
Your Monies is Shrinking!!For illustration only
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Private & Confidential. For internal circulation & training purposes only.
The Impact Of Inflation
Inflation Rate(%) 10 years 15 years 20 years
246810
82,03567,55655,83946,31938,554
74,30155,52641,72731,52023,939
67,29745,63931,18021,45514,864
RM100,000 NOW
For illustration only
Note: The above are for illustration purposes only and the views/opinions in this document are those of RHBAM and are subject to change
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Private & Confidential. For internal circulation & training purposes only.
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Private & Confidential. For internal circulation & training purposes only.
The Power Of Compounding Effect
INITIAL INVESTMENT = RM100,000 RETURN
RATE 6% 8% 10% 12%
5 years10 years15 years20 years
133,823179,085239,656320,714
146,933215,892317,217466,096
161,051259,374417,725672,750
176,234310,585547,357964,629
For illustration only
Note: The above are for illustration purposes only and the views/opinions in this document are those of RHBAM and are subject to change
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Private & Confidential. For internal circulation & training purposes only.
INVEST
Grow Your WEALTH To Beat INFLATION
Let Your Monies Work For You! Capitalize on the Compounding Effect to Achieve Your Financial Goals
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Private & Confidential. For internal circulation & training purposes only.
What is Unit Trust?
UNIT TRUST
Unit Trust allows you to poolyour money with investors withsimilar financial objective
With Unit Trust, the pooledmoney can diversify yourinvestment into a variety of assetclasses
EquitiesFixed Income
Money Market
Note: The above does not constitute a recommendation to invest in or divest from unit trust funds. Investments in unit trust fund involves risk, including possible loss of the principal amount invested. Unit prices and distributions, if any, may go down as well as up.
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Private & Confidential. For internal circulation & training purposes only.
What is Unit Trust?
Unit Holders
Fund RMRM
Trustee Fund ManagerDiversified Portfolio
Returns RMRM
Shares Bonds Government Securities
Money MarketInstruments
In Custody of Managed by
Distribution Capital Gains
Professional fund managers take care of your investmentTrustee safeguards
the fund
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Private & Confidential. For internal circulation & training purposes only.
UNIT TRUST RETURNS
Capital Gain Distribution
ExampleInvestment RM100,000 RM110,000
Unit Price RM1.00 RM1.10
Present Future
ExampleUnit Owned 100,000Distribution per unit RM0.10Amount received RM10,000
For illustration only
Note: The above are for illustration purposes only and does not constitute a recommendation to invest in or divest from unit trust funds. Investments in unit trust fund involves risk, including possible loss of the principal amount invested. Unit prices and distributions, if any, may go down as well as up.
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Private & Confidential. For internal circulation & training purposes only.
Why Unit Trust?
Professional fund management
LiquidityDiversification spread risks
Wider investment exposure through pooled resources
Benefits of Unit Trust
Low investment amount
Don’t put all your eggs in one basket!!
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Private & Confidential. For internal circulation & training purposes only.
Investing in Unit Trust can be done through
Cash Lump Sum EPF’s Members Investment Scheme
Regular Savings Plan* (RSP)
*Further explanation on Regular Savings is in Slide 14
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Private & Confidential. For internal circulation & training purposes only.
Regular Savings with Unit Trust to benefit from Dollar-Cost Averaging (DCAP)
Unit Price (RM)
Unit Holder A Unit Holder BBuy the same no. of units regularly Buy the same amount regularly
Units bought Cost (RM) Units bought Cost (RM)10.00 1,000.00 10,000.00 640.00 6,400.006.00 1,000.00 6,000.00 1,066.67 6,400.008.00 1,000.00 8,000.00 800.00 6,400.006.00 1,000.00 6,000.00 1,066.67 6,400.002.00 1,000.00 2,000.00 3,200.00 6,400.00Total 5,000.00 32,000.00 6,773.33 32,000.00
Average unit cost for Unitholder A: RM 6.40Average unit cost for Unitholder B: RM 4.72
The difference betweenthe two investors is theDCAP in effect
Note: The above are for illustration purposes only and does not constitute a recommendation to invest in or divest from unit trust funds. Investors should note that regular contributions do not assume a profit and do not protect against loss in declining markets. Past performance is no guarantee of future results.
Returns may go down as well as up. All investments involves risk.
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Private & Confidential. For internal circulation & training purposes only.
Note: The above are for illustration purposes only and does not constitute a recommendation to invest in or divest from unit trust funds. Investments in unit trust fund involves risk, including possible loss of the principal amount invested. Unit prices and distributions, if any, may go down as well as up.
Understanding Unit Trust Investments (Risks vs Returns)Risks
Returns
●
●●
●●
●●
Money Market / Cash Management
Bonds / Fixed Income
Balanced
Income
Index
Growth
Aggressive Growth
For illustration only
For internal circulation only. Strictly private & confidential
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For internal circulation only. Strictly private & confidential
Categories of Unit Trust Funds
1. Equity generally invest in stocks
2. Aggressive Growth Funds generally invest in stocks with higher growth potential
3. Index Fund aims to provide investment results that closely
resemble the performance of an index by investing inthe index’s component stocks
4. Income fund the fund will invest primarily in stocks which earn
potential dividend income
For internal circulation only. Strictly private & confidential
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For internal circulation only. Strictly private & confidential
Categories of Unit Trust Funds5. Balanced Maintains an exposure to a range of mixed assets
classes to decrease the risk element of investing6. Bonds / Sukuk Mainly invested in corporate bonds, government
securities & money market instruments Capital is generally more stable as compared to
equity. Normally, the potential returns offered by thesefunds are lower than equity
7. Money Market / Cash Management Invests in low risk Money Market instruments
8. Syariah Investment in accordance with the requirements of
Syariah Laws
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Private & Confidential. For internal circulation & training purposes only.
Features of Bonds / Sukuk Funds
Mainly invested in corporate bonds, government securities &money market instruments
Generally it will provide regular income with less emphasis oncapital growth
Capital is generally more stable as compared to equity.Normally the potential returns offered by these fund are lowerthan equity
Useful diversification to insulate the risk of negative returns inany one period
Returns from Bond/Sukuk funds can have a negativecorrelation with equities hence helps the management of risk inan investor’s portfolio
For internal circulation only. Strictly private & confidential
Page | 19Features of Cash Management Funds
• Income generated is tax exempted.Non-taxable
income
• NO lock-in period or tenure.• NO penalty for early withdrawal.Flexibility
For certain funds, the Manager can strive to maintain the NAV of the Fund atpotentially RM1.00 or higher. As such suitable for investors who wish topreserve their capital.
Capital Stability
• May provide better return from non-taxable income and proper management offunds by our professional fund managers.
Income Enhancement
• The income is calculated on daily basis and distributed at month-end (if any).• The performance is more resilient as compared to equity and bonds
throughout all the market cycles and events.
Provision of regular &
consistent income
For internal circulation only. Strictly private & confidential
Page | 20Asset Allocation
Asset allocation is an investment strategy that aims tobalance risk and reward by apportioning a portfolio'sassets according to an individual's goals, risktolerance and investment horizon. (Source: Investopedia, Nov 2017)
3 main asset classes:-
EquitiesFixed-incomeCash
For internal circulation only. Strictly private & confidential
Page | 21Asset Allocation
Diversification of risk into different asset classes.
Generally helps protect investors from the volatility of themarket (market ups and downs)
Usually when stocks market falls, other asset classes likebonds/Sukuk might rise.
Never Put All The Eggs
In One Basket !
Investors please take note that all investments involves risks.
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Private & Confidential. For internal circulation & training purposes only.
1. Unit Trust vs Real Estate Low capital required Better liquidity Can be relatively a shorter time horizon Lower cost of investment Benchmark for unit trust performance
2. Unit Trust vs. Fixed Deposit No locked-in period for returns Potentially higher returns (depending on market condition & funds)
Investment into diversified asset classes
Diversify Your Investments
Note: The above are the views of RHBAM and does not constitute a recommendation to invest in or divest from unit trust funds. Investments in unit trust fund involves risk, including possible loss of the principal amount invested. Unit prices and distributions, if any, may go down as well as up.
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Private & Confidential. For internal circulation & training purposes only.
The Snowball Effect
You just need to get it rolling!!
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Private & Confidential. For internal circulation & training purposes only.
Private & Confidential. For internal circulation & training purposes only.
THANK YOU
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