| Pre Investment |
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1. |
I
am keen to know what unit trusts are all about. Please
explain.
Unit Trust is a form of collective
investment scheme that pools the savings of investors
with similar investment objectives in a special “trust?
fund managed by professional Investment Managers to
maximise returns for the benefit of the
investors.
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| 2. |
I
would like to invest in a Unit Trust Fund that can give
quick high returns (within 6-12 months). Is that
possible?
You should be aware that unit trust
funds are long-term investments and should not be for a
6 to 12 month period. This is due to the fact that unit
trust has its risks and it is subjected to market
fluctuations. If you are looking for high returns within
a short period, you should look at other investment
vehicles such as direct investment into the stock
market. You should also be aware that the risks involved
are very much higher compared with investing in unit
trust funds. Should the market turn against you, the
value of the amount invested may be significantly
reduced.
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| 3. |
How
do I time my investment in unit trusts? For example, is
it a good time to enter into a unit trust investment
when the stock market is weak?
It is difficult to
time the market to invest in unit trusts. In fact the
investment manager of the unit trust fund performs the
timing of investing on your behalf. A good strategy
would be to invest less when the stock market is high
and more when the stock market is low rather than
conversely. A weak stock market presents good
opportunity to invest at low prices to reap the profits
on market strength.
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| 4. |
I
have heard that people who invest in unit trusts lost
their money. I do not have the confidence to invest in
unit trusts?
Market volatility is a basic feature
in fund investments. It has its ups and downs. You may
lose money by buying when the unit trust was at a high
price. As long as you hold on to your investment in the
fund, you stand to make money when there is an upturn in
the market. It is advisable to adopt the dollar cost
averaging method.
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| 5. |
What is the dollar cost averaging
method?
This principle refers to the systematic
and regular investment of a fixed amount of money
irrespective of the price level and works on the
averaging cost principle of investments. As the stock
market fluctuates, such a systematic investment
programme will enhance the performance similarly in the
periods of declining or rising prices. However,
investors must remember that this method should only be
used over a long-term period in order to maximise its
benefits.
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| 6. |
Consumers now have a wide variety of unit
trust funds for investment including Government managed
unit trust. Why then should I buy TA Unit
Trust?
There is no no doubt consumers have a wide
variety of unit trusts to choose to invest in, but here
at TA Unit Trust our funds had performed quite
satisfactory compared to other funds in the market. Our
following funds were recently rated the top performing
funds:
|
TA Comet
Fund |
: |
i) Winner of the Edge-Lipper Malaysian Unit
Trusts Award 2002 (3-Year Growth & Income
Equity Category)
ii) 5 Star Fund (S &
P) (Source: S & P Micropal Table, The Edge
Weekly, 19 May 2003) |
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TA Islamic
Fund |
: |
i) Winner of the Edge-Lipper Malaysian Unit
Trusts Award 2002 (1-Year Islamic/Syariah Equity
Category)
ii) Best Performing Islamic
Equity Fund over 1-Year in The Star/Standard &
Poor’s Investment Funds Award 2003 |
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TA Growth
Fund |
: |
5 Star Fund (S & P) (Source: S & P
Micropal Table, The Edge Weekly, 19 May
2003)
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| 7. |
If,
unfortunately, the unit trust company gets into
financial difficulty, what will happen to my investments
in the unit trust funds?
The unit trust fund’s
assets are kept separately from that of the
management company. The appointed trustee of the fund
safeguards the assets of the fund. Hence, in case of
liquidation of the management company, the unit holders?
investments are protected.
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| 8. |
What if I change my mind after having invested
in a unit trust?
A Cooling-Off Period of six
(6) business days is available for first time
investors in our funds. Within this period, any investor
who exercise this right will receive a full refund of
the money initially invested.
This right is not
applicable for your subsequent
investments. |
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| Sales
Application |
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1. |
Who
can invest?
1. Local and foreign individuals
investing as a single or with a joint unit-holder.
2.
For investors under the age of 18, investments are to be
held by an adult on their behalf.
3. Corporate
entities, trust, co-operatives,
foundations.
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| 2. |
What is the minimum initial investment for TA
Unit Trusts?
The minimum investment for :
RM1000 or 1000 Units for TAGF.
RM1,000 for TACF, TAIF and TIF, TASF, TAHGF &
TADO.
RM10,000 for TACP & TAICP.
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| 3. |
Are
there any sales charges per unit?
Yes. It varies
between 5% and 7% of the NAV per unit excluding rounding
adjustments to the nearest 0.01
sen. |
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| Payment |
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1. |
How
can I make an investment?
Investments can be made
at any of our authorised agents, regional sales and
service centres or at the Management Company’s Head
Office with an application form attaching either a copy
of the applicant’s identity card, passport, or other
form of identification.
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| 2. |
Where can I obtain an application
form?
It can be obtained from:
1. Our KL Head
Office
2. Any of the regional sales and service
centres
3. Any authorised TA Unit Trust Agents,
or
4. Download from this website
www.tautm.com.my
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| 3. |
How
do I pay for an Investment?
By crossed cheque,
banker’s draft, money order or cashier’s order payable
to TA Unit Trust Management Bhd.
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| 4. |
What price do I pay for the units
invested?
The price you pay would be the price
applicable at the next valuation point ( i.e. the foward
pricing principle ), upon receipt of complete
documentation. For example, if we receive your Fund
Application Form, cheque and a copy of your I/C before 5
pm on business day, the price you pay would be that
calculated for the end of that day at 5 pm, which is our
next valuation point. |
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| Liquidation |
|
1. |
How
do I liquidate my investment?
Units may be
liquidated on any Business Day by completing a Request
to Repurchase Form. The liquidation of units will be
priced at the NAV per unit calculated at the end of that
particular Business Day.
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| 2. |
Is
there a minimum redemption amount?
Yes. The
minimum redemption amount is 500
units.
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| 3. |
Is
there a minimum balance in the account?
Yes. The
minimum balance is 500 units except for TIF where the
minimum balance is 1000 units.
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| 4. |
When do I receive the proceeds from the
redemption?
The proceeds are sent to the investor
within 10 days upon receipt of the completed Form of
Request to Repurchase. |
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| Switching Between
Funds |
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1. |
Can
I switch between the Funds?
Yes. You are entitled
to one free switch out of a fund. Subsequently, there
will be an administrative charge of RM50 or 1% of the
amount switched whichever is higher. However, especially
for Muslim unitholders, switching from a Syariah based
fund to a conventional fund is
discouraged. |
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| Distribution Of
Income |
|
1. |
Can
I reinvest any distributions declared?
Yes. They
are reinvested automatically, unless you have
specifically indicated on the Fund Application Form that
you wish for the distribution to be
paid-out. |
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| Customers
Services |
|
1. |
What number do I call if I have any
enquiries?
You can call either the customer
service line at 03-2031 6603 or you can call our
toll free line at 1-800-38-1747 to speak to our
customer care consultants.
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2. |
Where can I obtain any information on the
investments I have made?
When you invest in any
of the Funds, the Manager will undertake to send you the
following:-
 Written confirmation on all transactions
including any unit splits and income
distributions;
Unaudited interim report for the half year of the
fund’s financial year;
Annual
audited report for the fund’s financial year-end;
and
Six-monthly statement of
account with the interim and final fund
report.
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3. |
In
addition, you may obtain information regarding your
investment by registering for e-Service online on
www.tautm.com.my
.
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| How often do you add new stocks in your
Approved Stock List ? |
| New stocks will be added into the approved stock list
once a week. The type of stocks to be included or taken out from the
list will depends on the decision from the technical committee meeting
which is held on a weekly basis. |
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| What does core stocks/Investment stocks/cyclical
stocks mean? |
Core stocks are defensive in nature and are made up of stable,
blue chip-companies. They are also stocks with large market capitalization (generally
over RM1bn), highly liquid, well managed and has sound profit track records, for example,
Maybank, Public Bank, IOI, MISC etc. In addition, key KLCI component stocks like Telekom
and Tenaga are also included as core stock. In essence, core stocks are less volatile in
nature as compared to investment stocks and cyclical stocks.
Investment stocks are growth stocks, which tend to out-perform KLCI during an up-trend and
decline proportionately less than the Index during a downtrend. They are also likely to be
more volatile than core stocks but has potential to qualify as core stock in the future.
Cyclical stocks are stock of a company which is sensitive to business cycles and whose performance
is strongly tied to the overall economy. Cyclical companies tend to make products or provide
services that are in lower demand during downturns in the economy and higher demand during
upswings. (Examples include property, automobile, construction, and technology sectors.) Also
included in the category are recovery stocks, and those stocks, which tend to swing proportionately
more than the KLCI be it in an up-trend or down trend. Generally, cyclical stocks are more volatile
in nature and has the highest risk as compared to core stocks and investment stocks.
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| How often do you come out with new products?
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| The main objective of our Company in actively developing new and
innovative products/funds is to provide a more complete range of products, from low risk to high
risk, to fulfill various investors' risk appetite. Furthermore, our new product development's
timeline depends on the prevailing investment environment to ensure potentially stronger fund
performance as well as investors' demand. Nevertheless, it is our aim to launch at least two
(2) new products/funds annually |
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| What would be the current recommended product with the current
market condition?
|
Any investment you make must suit your overall investment strategy
and risk profile. The desired allocation of the funds in the respective category should fall
within your desired asset allocation (the amount of assets to be invested in various categories
i.e. equities, bonds, and money market), which would depend very much on your risk profile.
Nonetheless, we do strongly suggest investors to diversify their investment into several
categories of funds.
Notwithstanding that, you should not time the market closely when investing in Unit Trusts.
Unit Trusts should generally be viewed as medium-to-long term investments, reducing your exposure
to short-term volatility and risk and allowing you to take advantage of underlying trends in
market sectors. |
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| How often does your Fund give distributions?
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| Generally, our Fund(s) will declare income distribution to the
respective Unitholders, if any, once in each financial year. The payment of income distributions
will depend on the distribution policy of the Fund, which may vary from time to time depending
on interest rates, market conditions and the performance of the fund. The distribution may
increase or decrease in the future. You must be aware that past or present distribution policies
are not an indication of future distribution policies |
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| I've been told that buying into unit trust is safer then buying
directly into the stock market. If this is so, why are people still not confident with unit
trust products?
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| Most investors start with a lump sum investment and then contributing
on a regular monthly basis. The initial choice of unit trust fund was made formerly during a
different market environment, and for most investor portfolios of these funds are not managed
and switched as market conditions and sector trends change. This resulted in poor performance
and disappointment. Another factor that may also have a negative effect on investments in the unit
trust industry is when investors purchase funds that do not fit their risk profile and time horizon.
TAUTM believes that a unit trust investment can be very successful if managed correctly on a
continuous basis. |
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