What is Unit Trust?
Unit Trust is an investment scheme that pools money
from many investors who share similar financial objectives, investment
strategy and risk tolerance.
The pooled fund will then be invested by professional investment
management companies in a diversified portfolio of authorized
investments, on behalf of investors.
Authorized investments are Securities Commission (SC) approved
stocks, bonds, commercial papers, government securities, treasury
bills which includes direct business ventures, unquoted securities,
foreign securities etc.
There are various types of fund with different objectives, investment
strategies and level of risk involved. To determine the types
of fund that are suitable for you, you need to consider the following
1. What are your investment goals?
2. How long do you plan to invest?
3. What kind of returns are you looking for?
4. What is the risk level you can tolerate?
Generally, there are the few types of unit trust fund available
in the market:
Invests mainly in shares traded on either
local and or foreign stock exchange, with high risk level
Invests equally in equities and fixed income
instruments (bond & money market), with moderate risk
in bonds & other debt securities, with low risk level
in money market instruments (short-term treasury bills that
are generally not accessible to individual investors) , with
low risk level
in structured notes that acquire highly rated zero coupon
securities that are sufficient to repay 100% of the principal
amount of the structured notes on maturity date (normally
3 years). The net proceeds from the structured notes are first
allocated for the purchase of zero coupon securities whilst
the balance goes into the fund investment with objectives
to generate returns
HLISB Invest in Shariah compliant
fund that available in all types of the
above Unit Trust fund available.