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.