Calculating Net Asset Value (NAV) of Unit Trust Scheme

Unit Trust Schemes

• The maximum age for a qualified member in an EPF is 60.

Real Estate Investment Trusts (REITs)

• The income of REITs is mainly derived from rental income and capital appreciation of the property held by the trust.
• REITs are allowed to be listed.

Collective Investment Schemes

• A collective investment scheme is an investment fund that invests in a collection of assets, such as shares or bonds.
• It is also known as a unit trust scheme.

Unit Trust Schemes

• A unit trust scheme's annual report typically includes a statement of assets and liabilities, auditor's report, fund composition, and statement of asset allocation.
• The prospectus of a unit trust fund must be renewed every year.
• The first unit trust management company was set up in Malaysia in [year not specified].

Net Asset Value (NAV) Calculation

• The calculation of NAV involves the value of equity investments, costs and charges involved in various transactions, the value of money market instruments (if applicable), and accrued gross distribution and interest income after deduction of relevant fees and expenses.

Investment Risks and Strategies

• Leveraging into an investment means borrowing funds to invest to gain maximum exposure, expecting that the rate of return on investment will exceed the borrowing cost, thus giving rise to additional profit.
• The risk of an investor directly investing in a small number of shares is that the investor is exposed to the risk of either making or losing a large portion of their investments.

Unit Trust Financing

• The maximum margin on unit trust financing is fixed at 67%.
• If an investor wants to invest RM200,000, the maximum amount that can be borrowed from a financial institution is RM134,000.

Parties Involved in Unit Trust

• The parties involved in a unit trust are the UTMC, trustee, investment manager, and unit holder.

Prospectus of Unit Trust Fund

• A prospectus of a unit trust fund typically includes investment objectives, authorized investments, fees and charges, and trust expenses.

Risks of Borrowing to Invest in Unit Trusts

• The risks of borrowing to invest in unit trusts include interest rate fluctuations, default in repayment of loans, premature repayment of loans, and margin calls.

Distribution Reinvestment

• Distribution reinvestment is a term used when an investor reinvests their distribution in a unit trust scheme.

Investor Choices

• Investors have the choice to reinvest their distribution in a unit trust fund, take the money out and spend it, or buy more shares of the Unit Trust Management Company.

Net Asset Value (NAV) of a Fund

• If the NAV of a fund is RM1.00, the initial charge is 1.5%, and no exit fee is imposed, an investor who redeems 10,000 units would receive RM9,850.

Purpose of Prospectus

• The main purpose of a prospectus is to provide potential and existing investors with all the necessary information to make an informed decision.