grow your wealth invest in ut (final)6% 8% 10% 12% 5 years 10 years 15 years 20 years 133,823...

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.

Page | 2

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

Page | 3


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

Page | 4


Your Monies is Shrinking!!For illustration only

Page | 5


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


Page | 6


Page | 7


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



Page | 8


INVEST

Grow Your WEALTH To Beat INFLATION

Let Your Monies Work For You! Capitalize on the Compounding Effect to Achieve Your Financial Goals

Page | 9


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.

Page | 10


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

Page | 11


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


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.

Page | 12


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!!

Page | 13


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

Page | 14


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.

Page | 15


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 internal circulation only. Strictly private & confidential

Page | 16


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


Page | 17


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

Page | 18


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


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


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


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.

Page | 22


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.

Page | 23


The Snowball Effect

You just need to get it rolling!!

Page | 24



THANK YOU

grow your wealth invest in ut (final)6% 8% 10% 12% 5 years 10 years 15 years 20 years 133,823...

Documents