Podcast
Questions and Answers
Which of the following funds is likely to have the highest risk?
Which of the following funds is likely to have the highest risk?
Which of the following investor requirements can unit trust funds meet?
Which of the following investor requirements can unit trust funds meet?
What is the total value of Mr. Dave's investment at the end of May?
What is the total value of Mr. Dave's investment at the end of May?
What is the Net Asset Value (NAV) per unit of Mr. Dave's investment in June?
What is the Net Asset Value (NAV) per unit of Mr. Dave's investment in June?
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Which of the following funds would be suitable for a 20-year-old employee with a high risk tolerance?
Which of the following funds would be suitable for a 20-year-old employee with a high risk tolerance?
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What is the primary goal of the Capital Market Masterplan?
What is the primary goal of the Capital Market Masterplan?
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What is the main advantage of investing in a unit trust?
What is the main advantage of investing in a unit trust?
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What is the main difference between a Hedge Fund and a Balance Fund?
What is the main difference between a Hedge Fund and a Balance Fund?
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What is the formula to calculate NAV per unit ex distribution?
What is the formula to calculate NAV per unit ex distribution?
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Why is UTS an ideal way of investing for an investor who is unable or unwilling to do research and analyze the investment market?
Why is UTS an ideal way of investing for an investor who is unable or unwilling to do research and analyze the investment market?
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What is one of the benefits of investing in UTS that reduces risk?
What is one of the benefits of investing in UTS that reduces risk?
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What is the primary function of the Securities Commission?
What is the primary function of the Securities Commission?
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What is the benefit of UTS that allows investors to easily redeem their investments?
What is the benefit of UTS that allows investors to easily redeem their investments?
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What is the role of the Securities Commission in relation to licensed persons?
What is the role of the Securities Commission in relation to licensed persons?
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What is the correct calculation to determine the amount received from the repurchase of units in Fund XYZ?
What is the correct calculation to determine the amount received from the repurchase of units in Fund XYZ?
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What is NOT a function of the Securities Commission?
What is NOT a function of the Securities Commission?
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What is the initial investment amount of the money market fund?
What is the initial investment amount of the money market fund?
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What is the on-going management fee of the money market fund?
What is the on-going management fee of the money market fund?
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What is the rate of return of the money market fund?
What is the rate of return of the money market fund?
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What is the value of the investment after 10 years if the initial entry cost decreased to 6%?
What is the value of the investment after 10 years if the initial entry cost decreased to 6%?
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How long does it take to increase the investment amount to RM200,000 with the effective rate of return from question 28?
How long does it take to increase the investment amount to RM200,000 with the effective rate of return from question 28?
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What is the total expense incurred by the ABC Millennium Fund during the financial year?
What is the total expense incurred by the ABC Millennium Fund during the financial year?
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What is the MER of the ABC Millennium Fund?
What is the MER of the ABC Millennium Fund?
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If Mr. Eddie invested RM10,000 today, how many units is he getting if forward pricing is applied?
If Mr. Eddie invested RM10,000 today, how many units is he getting if forward pricing is applied?
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What is the characteristic of an investor who focuses on long-term returns?
What is the characteristic of an investor who focuses on long-term returns?
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How is the price of a listed security determined?
How is the price of a listed security determined?
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What type of equity UTS generally invests in companies with higher capital growth potential but with associated higher risk?
What type of equity UTS generally invests in companies with higher capital growth potential but with associated higher risk?
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What is the main advantage of using the Rule of 72?
What is the main advantage of using the Rule of 72?
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What is the impact of a rising share market on the value of units in equity UTS?
What is the impact of a rising share market on the value of units in equity UTS?
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What is a disadvantage of investing in a UTMC?
What is a disadvantage of investing in a UTMC?
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What does a gradually decreasing MER over a period of several years indicate?
What does a gradually decreasing MER over a period of several years indicate?
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What is the formula to calculate the effective rate of return?
What is the formula to calculate the effective rate of return?
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What is one of the benefits of investing in a Unit Trust Scheme (UTS)?
What is one of the benefits of investing in a Unit Trust Scheme (UTS)?
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What is the concept of systematic and regular investment of a fixed amount of money?
What is the concept of systematic and regular investment of a fixed amount of money?
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How can an investor determine the number of units held during redemption?
How can an investor determine the number of units held during redemption?
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What is a useful tool for monitoring investment performance in UTS?
What is a useful tool for monitoring investment performance in UTS?
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What is the primary asset class in an equity UTS portfolio?
What is the primary asset class in an equity UTS portfolio?
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How is the NAV per unit calculated?
How is the NAV per unit calculated?
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What is the role of UTC in UTS transactions?
What is the role of UTC in UTS transactions?
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What is the effect of a distribution on the NAV per unit?
What is the effect of a distribution on the NAV per unit?
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Study Notes
Investment Funds
- Equity Fund: highest risk fund
- Hedge Fund: higher risk fund
- Balance Fund: medium risk fund
- Money Market Fund: lowest risk fund
Unit Trust Fund
- Designed to meet investor's requirements such as:
- Long-term savings
- Retirement fund
- Children's education
Investment Returns
- Mr. Dave's investment:
- Total investment: RM4,500
- Average price of investment: RM0.43 (calculated)
Unit Trust Investment
- Mr. Dave's unit trust investment:
- Number of units held by the end of May: 4,500 units (calculated)
Client Type
- 20-year-old employee:
- Stage 1 client type
- Little savings, low commitments, and skeptical about unit trust investment
- Right tolerance for risk
- Recommended to invest in Growth Fund
Capital Market Masterplan
- Recommendation to enhance awareness of Islamic Capital Market to domestic and international levels
Lump Sum Investment
- Initial investment: RM100,000
- Initial entry cost: 6.5%
- Ongoing management fee: 1.4%
- Rate of return: 11%
- Return of investment after 10 years: RM234,831.27 (calculated)
- Value of investment after 10 years with decreased entry cost: RM235,938.96 (calculated)
Forward Pricing
- Published NAV: RM0.65
- Price at the end of the day: RM0.66
- Number of units received by Mr. Eddie with forward pricing: 15,384.62 units (calculated)
MER (Management Expense Ratio)
- ABC Millennium Fund:
- Annual Management Fee: RM3,528,673
- Trustee: RM150,326
- Auditor's Remuneration: RM16,300
- Administration expenses: RM28,418
- Average Fund Size: RM235,300,528
- MER: 1.58% (calculated)
Unit Trust Management
- Mr. Abraham invested RM5,000 in ABC Growth Fund
- Owned by ABC Unit Trust Management Bhd
Distribution of Units
- Distribution of RM0.04 per unit for Fund XYZ
- NAV cum distribution: RM1,500,000
- Units in circulation: 1,000,000 units
- NAV per unit ex-distribution: RM1.46 (calculated)
- Mr. Z's repurchase of 20,000 units: RM30,000 (calculated)
Benefits of Investing in UTS
- Professional management
- Ready access to funds
- Opportunity cost
- Investment exposure
- Diversification
Securities Commission
- Functions:
- Regulate unit trust industry
- Ensure compliance with securities laws
- License and supervise licensed persons
- Act as custodian of assets of UTS
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Description
This quiz evaluates your understanding of investment funds, including equity, money market, balance, and hedge funds, as well as their associated risks and investor requirements.
