well, the name itself already tells us that the function of unit trust in Malaysia in loopsided, only benefiting to fund houses and unit trust agents, that is the reson they are called unit trust.

According to the OXford Dictionary, mutually benefit means share and exhange the benefit with all parties involved.

However, just look at the Malaysian situation, by investing the unit trust , once you start to invest in unit trust, you have loss 6.5% (5% for the so called personal financial consultant and 1.5% yearly to the unit trust houses)

The material information such as the projection of the returns of the fund will never be disclosed to you as investors because they don’t want to be held accoutabilities and responsible. Instead, they provide you with the examption clauses such as past performance of the fund should not be used as the yardstick for your futhure investment decision,etc

The investors returns are unpredictable, not sure at all.

Year in and year out, the 1.5% management fee for the fund houses are a sure thing with no risk.

The upfront agent fee of 5% is a sure thing with no risk.

Now, if we look at a fund house who manage funds of $1b, the mangement fees of 1.5% is equivalent to $15million yearly income.
and it is the sure return and without risk.

If they mess up the investors hard earned money, they will tell you that it is your fault for not reading the prospectus well before investing because they are so many unreasonable exempt clauses which are not benefitting the investors.

Worst still, if you hold for long term just like my case which i disussed in my previous article. When i quried them after 2 years of my investment, why can’t they generate positive absolute returns. They claim that they have sent me the monthly fact sheets, bi-yearly and yearly reports and I should not make unnecessary quries of thier perfomance any more. In other words,they will turn around and tell you that they informed me of thier performce and it is up to you to make decision base on their reports.

Fellow readers,if the fund house never make a positive absolute return since its launching, then, the investors will never have a chance to benefit from their investments regardless how long you are investing in.

it is a sure win business for unit trust company in malaysia, the higher number of funds managed by them, the higher the returns and with no risk.

Similarly, the agent(especially, the banks) the more 3 party funds they sale, the more upfront money they will get with no risk.

What about, investors, “chi ka poh chong”, you take care of yourselves!!!

在我还没有步入股市或信托基金之前，我有幸看到KLSE.8K的电子书，从此我只对股票有兴趣，之后我就看了很多有关股票的书籍。

对于信托基金，我最不同意的一点，就是他们每年征收管理费，不论基金是亏或赚！

所以我想，既然投资信托基金可能会亏钱，为何不投资出售信托基金公司的股票，他们不论基金亏或赚，都可以收管理费，这是一门包赚的生意，绝对投资得过！

That means they can’t even make a decent return equivalent to bank’s deposit rate But, they claim that they are profesional, so I asked them that are they professional without liabilities? becos, year in and year out, they are making 1.25% whereas he agent are making 5% upfroant,so what the investors get?

I have contronted with them, they explain nonsense to you.
I conclude that actually it is the scam whereby, no liabilities and accoutabilities for agent and fund managers.
what sort of business is better than unit trust business in malaysia?

Win or loss, they don’t have to be responsible and sleep soundly.

When you attend the seminar organised by them, they always make presentation as if they are professional, economc outlook, political situation,etc but when you ask them to forecst their own fund, they always say that it is not their practiceto do so. What a nonsense isn’t it? If you can’t do your co’s own forecast on the return, how can you make forescast on the trend of the country? In otherwords, they just don’t want to be held responsible and accoutabilities for their actions.

As a past unit trust holder, I just feel conned, it is better managed by ourselves. anyway, aim for a few counters such as Public Bank, Perlis Plantation, Ytlpower just to name a few, spend sometime follow the news, using dollar cost averaging, I think the returns will be much better than the nonsense fund managers in malaysia.

Nowaday, you know these so called fund managers can’t even perfom in malaysia, yet dare to claim to launch the Asia Pacific fund(world funds). they are treating us as investors are so dam stupid.

Well, fellow readers may not agreed with me, but 2 years to generat a negative return is equivalent to hiring a marketing executive who can’t perform eventhough 2 years has been given for his trial. Should we fire him or continue to give him a chance?