Podcast
Questions and Answers
What is the primary objective of the Acts that regulate the unit trust industry?
What is the primary objective of the Acts that regulate the unit trust industry?
- To protect the interests of the UTMC
- To promote the securities market
- To regulate the trustee's activities
- To safeguard the benefits of the unitholder (correct)
How often must the prospectus of a unit trust be renewed according to regulation?
How often must the prospectus of a unit trust be renewed according to regulation?
- Every 2 years
- Every 6 months
- Every year
- Every 12 months (correct)
What is the risk profile of an equity trust compared to other types of trusts?
What is the risk profile of an equity trust compared to other types of trusts?
- Neutral
- Defensive
- Conservative
- Aggressive (correct)
What is the maximum margin on unit trust financing?
What is the maximum margin on unit trust financing?
Who is responsible for regulating the unit trust industry?
Who is responsible for regulating the unit trust industry?
What is the main purpose of a unit trust prospectus?
What is the main purpose of a unit trust prospectus?
What happens to an equity trust when the overall stock market falls?
What happens to an equity trust when the overall stock market falls?
What is the role of the UTMC in the unit trust industry?
What is the role of the UTMC in the unit trust industry?
What is provided to an investor on the date of allotment of units?
What is provided to an investor on the date of allotment of units?
What is NOT part of the confirmation provided to an investor?
What is NOT part of the confirmation provided to an investor?
What is the platform for UTMC to discuss issues relating to the unit trust industry?
What is the platform for UTMC to discuss issues relating to the unit trust industry?
What is NOT part of the Code of Ethics?
What is NOT part of the Code of Ethics?
What is provided to an investor regarding the exit fee?
What is provided to an investor regarding the exit fee?
What is a key aspect of fair dealing?
What is a key aspect of fair dealing?
What is NOT part of the Standards of Professional Conduct?
What is NOT part of the Standards of Professional Conduct?
What is the purpose of the confirmation provided to an investor?
What is the purpose of the confirmation provided to an investor?
What is the primary role of a UTC when advising clients?
What is the primary role of a UTC when advising clients?
What is the effect of a unit split on the NAV of a UTS?
What is the effect of a unit split on the NAV of a UTS?
What should a UTC do when an investor is unsure about investing in a UTS?
What should a UTC do when an investor is unsure about investing in a UTS?
What is the main objective of a unit split?
What is the main objective of a unit split?
What is the responsibility of a UTC when advising investors?
What is the responsibility of a UTC when advising investors?
What is the role of UTMC in the unit trust industry?
What is the role of UTMC in the unit trust industry?
What should an investor do before investing in a UTS?
What should an investor do before investing in a UTS?
What is the risk involved in investing in a UTS?
What is the risk involved in investing in a UTS?
What is the primary objective of dollar cost averaging?
What is the primary objective of dollar cost averaging?
What is the consequence of investing a fixed amount of money at regular intervals?
What is the consequence of investing a fixed amount of money at regular intervals?
What is the characteristic of a unit trust scheme?
What is the characteristic of a unit trust scheme?
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?
What is the formula to calculate the MER?
What is the formula to calculate the MER?
What is the advantage of dollar cost averaging compared to investing all capital at one time?
What is the advantage of dollar cost averaging compared to investing all capital at one time?
What is the purpose of investing a fixed amount of money at regular intervals?
What is the purpose of investing a fixed amount of money at regular intervals?
What is the feature of dollar cost averaging that helps reduce the average cost of investments?
What is the feature of dollar cost averaging that helps reduce the average cost of investments?
What information is contained in the Register related to each investor?
What information is contained in the Register related to each investor?
What is the main purpose of the Disciplinary Committee established by FIMM?
What is the main purpose of the Disciplinary Committee established by FIMM?
What is the compounding factor formula used to calculate the future value of an investment?
What is the compounding factor formula used to calculate the future value of an investment?
What is the institution that marked the beginning of Islamic finance in Malaysia?
What is the institution that marked the beginning of Islamic finance in Malaysia?
What is the effect of inflation on the cost of education fees over time?
What is the effect of inflation on the cost of education fees over time?
What is the purpose of a unit trust agent introducing himself to a client?
What is the purpose of a unit trust agent introducing himself to a client?
What is the significance of the Register in the unit trust industry?
What is the significance of the Register in the unit trust industry?
What is the primary function of the Investigating Committee established by FIMM?
What is the primary function of the Investigating Committee established by FIMM?
Study Notes
Unit Trust Industry
- The main objective of the Acts that regulate the unit trust industry is to safeguard the benefits of unitholders.
- The prospectus of a unit trust must be renewed at least once every 12 months.
Unit Trust Financing
- The maximum margin on unit trust financing is fixed at 67%.
Unit Trust Scheme
- A unit trust scheme is a form of collective investments that allows investors with similar objectives to pool their savings.
- Investing in unit trusts involves risks, and investors should understand the risks involved.
Unit Split
- A unit split does not affect the NAV of the unit trust scheme or the value of a unitholder's investment.
- The objective of a unit split is to attract new investors by lowering the unit price.
Investment Strategies
- Dollar cost averaging is a systematic and regular investment of a fixed amount of money, regardless of the price level of the investment at the time.
Code of Ethics
- The Code of Ethics includes fair dealing, competence, and compliance with laws and regulations.
- The Standards of Professional Conduct include acting with due care, skill, and diligence, and using authorization cards.
UTC Roles
- A UTC should advise clients on the services provided by UTMC, explain the risks involved in investing in unit trusts, and ensure clients read and understand the prospectus.
- A UTC does not need an IA license.
- A UTC should perform a needs analysis for clients and not recommend a unit trust product without understanding their needs.
Regulatory Bodies
- The Disciplinary Committee investigates complaints from customers.
- The Securities Commission regulates the unit trust industry.
Islamic Finance
- Islamic finance in Malaysia began to develop with the establishment of Bank Islam Malaysia Berhad in 1983.
Calculations
- To calculate the future value of an investment, use the compounding factor formula: (1 + i)^n.
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Description
This quiz covers the risk profile of a money market trust in comparison to other investment options. It helps investors and UTC make informed decisions.
