Fundsupermart and Unit Trusts in Malaysia

Fundsupermart

I received Fundsupermart‘s red packets in the mail (Ironman not included) today just in time for CNY this year.

Fundsupermart

Red Packets from Fundsupermart

As some of you may know, I’ve been consistently investing in Private Retirement Scheme (PRS) funds through Fundsupermart for 2 years now. The RM500 youth incentive from the government got me started and I’ve been investing RM3,000 annually since then. The tax breaks given by the government are treated as a sort of guaranteed return for my portfolio. One may argue though that the fact that we’re unable to withdraw the funds until after the age of retirement is a drawback. I, however, treat my annual RM3,000 deposits into PRS as my security fund, together with fixed deposits and my EPF.

Unit Trust

I used to invest in Unit Trusts (UT) a few years ago but have since switched over to shares. The UT industry in Malaysia is still in its prehistoric age with exorbitant fees and lousy returns. Some are even charging fees as high as 5% per annum, compound that and you will be paying more than half your wealth in fees. It is my wish and hope that in the future, companies like Vanguard will be able to set up shop in Malaysia. I’d then gladly throw half, if not all my wealth in a passively managed index fund.

As I plan to be transparent with all my investments, I present to you my UT and PRS holdings. I’ve kept some of my investments in bond funds as I have no other means other than UTs to diversify into fixed income investments.

FSM PRS UT Holding

As at 31 December 2015, 37% of my wealth lies in my secure bucket – ie. the bucket where the investments are considered safe. Funds in my savings & current accounts, fixed deposits, PRS funds, EPF and my bond funds make up my secure bucket. I intend to dip into my secure bucket and reduce it to around 30% if and when the opportunity arises.

Till then, happy investing.

End.

As many of you know, I’m not a big proponent of Unit Trusts and Mutual Funds here in Malaysia due to their excessive and ridiculous fees. However, if I were to recommend a platform for Malaysian investors to purchase their funds, it would be Fundsupermart. They offer the lowest fees currently. However, the fees charged by the funds themselves are another matter altogether.

So, if you’re interested in opening an account with Fundsupermart, you may do so hERE.

11 thoughts on “Fundsupermart and Unit Trusts in Malaysia

  1. Hi Leigh,

    I am interested to buy a PRS or annuity now but I don’t know what’s the difference between buying it from Fundsupermart (What is Fundsupermart, by they way?) or insurance company. I hope you could enlighten me more about it.

    Thanks
    Mavis

    • Hi Mavis,

      Please do buy it from FSM. Much much cheaper fees. FSM is an online platform for you to purchase your PRS and mutual funds. They’re legit if you’re worried about that part. I can attest to it. Don’t even consider other fund houses or insurance companies. Their fees are too damn high. Go for FSM!

      We have a lot of long-time investors in FSM here so feel free to ask any questions!

      Hope this helped.

  2. From the info you provide, i estimate your age is less then 33, or maybe even younger ,but based on your stock port folio you are just incredibles for me, how could u been so much fund by this age, except you getting a very high salary or you were a business man, anyway i also got try invest with FSM since last year, maybe you may look around for Eastspring Small-Cap and Kenanga Growth Fund, there performance so far not bad, of course you cant compare with stock, since this is lower risk then stock as risk = return, but at least for thos who not quite familiar with stock may consider this as a good investment other then just keep the money in the bank ~ Btw nice blog, please share more, im also new to stock, now still learning, hope you may share more about how you get higher return or fund ,Cheer~

    • Hey Leroi,

      Thanks for your kind words.
      I hope you read the article on Mutual Funds. The management fees and service fees charged by them are too high to ignore for me. For the long term, I’ll lose 20-50% of my returns in fees if I invest in Unit trusts. Eastspring and Kenanga might be doing well now but I can’t say the same for the future.

      Btw, those 2 unit trusts u mentioned invest in stocks too my friend, I hope you know that. I would say both invest in stocks riskier than my portfolio. Lol please read the fact sheet on what kind of assets your funds invest in.

      Hope this opened your eyes a little!

      • Haha, you were right, that’s why im trying to learn myself about stock currently~
        And that why im reading your blog

  3. Hi, what do you think about unit trusts without sales charges (i.e. NAV) during occasional promotion period… Do you think they are still not good due to the other charges i.e. management fees, trustee fees etc?

    • Hey CC,

      No I wouldn’t recommend any UTs even with their sales charge promotion. Sales charges are one-off, I’m actually more concerned about the recurring fees ie management and trustee fees.

      Hope this clarifies. Don’t get me wrong though, investing in UTs are still better than not investing at all. But investing in stocks on your own for the LONG TERM is much more preferable.

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