FAQs (FOR INVESTORS)
Investing in Unit Trust Schemes/Private Retirement Schemes
You can approach a Distributor. There are several types of Distributors:
- Unit Trust Management Company (UTMC);
- Private Retirement Scheme Provider (PRS Provider);
- Institutional Unit Trust Scheme Advisers (IUTA);
- Institutional Private Retirement Scheme Adviser (IPRA);
- Corporate Unit Trust Scheme Advisers (CUTA); and
- Corporate Private Retirement Scheme Advisers (CPRA).
- To get details on the Distributors, you can refer here:
You can also approach a Consultant. These are individuals who have been authorized by FIMM to sell investments in UTS/PRS.
You should ask the Consultant to show you his/her FIMM Authorization Card. Only Consultants that are registered with FIMM are authorized to sell UTS and PRS. Additionally, once he/she shows you the FIMM Authorization Card, you can check his/her FIMM Number at https://www.fimm.com.my/search/ to verify his/her registration status.
All UTS and PRS in Malaysia must be approved by the Securities Commission Malaysia. Once they are approved, you can refer to the Securities Commission’s website for a list of approved UTS and PRS (https://www.sc.com.my/analytics/fund-management-products).
FIMM also maintains a list of approved UTS and PRS. You can refer to this page: https://www.fimm.com.my/industry/members/ .
If the UTS/PRS being offered has not been approved by the Securities Commission, you should not invest in it.
In order to help you choose the most suitable UTS/PRS to invest in, the Consultant would need to know some information about you, such as your investment objective, risk tolerance level, investment preferences, and investment timeframe. The more information you share with your Consultant regarding your investment needs and preferences, the more productive your consultation with him/her will be.
Yes. The Consultant is subject to a confidentiality agreement with his/her Distributor. He/She is not allowed to share the information that you provided unless it is required by law or you have provided prior written consent.
The Consultant must act in an open, honest and professional manner. His/her role is to help you decide on a UTS/PRS that is suitable for you to invest in. As such, you can expect your Consultant to recommend a UTS/PRS that matches your investment needs, preferences, and personal circumstances. He/she should be able to explain to you the features of the UTS/PRS and why it is suitable for you as well as inform you the fees involved in investing in that UTS/PRS.
If there are any parts of his/her explanation that is unclear to you, do not hesitate to ask.
Getting to know the UTS/PRS before investing in it is very important. As such, you should ask about the features of the UTS/PRS. This includes information on:
- The UTS’/PRS’ investment objectives;
- The investment strategy;
- Whether the UTS/PRS pays out distribution? – If yes, how often does it pay distribution? – If yes, do you receive the distribution payment in cash or in additional units?;
- The risks of investing in the UTS/PRS;
- The price, fees, and charges involved; and
- The minimum initial investment amount and the minimum additional investment amount.
Also, make sure to ask for a copy of the recommended UTS’ prospectus or the PRS’ disclosure document. Alternatively, because the prospectus/disclosure document is relatively thick, you can request for a product highlights sheet (PHS) instead (a PHS is a summary of the prospectus/disclosure document. All these documents are also available for free online). Although the Consultant should be able to inform you about the features of the UTS/PRS, you should still do your own due diligence.
The best approach is to read the entire prospectus/disclosure document. However, if you are not able to read the entire document, you can read the product highlights sheet instead, which summarizes the prospectus/disclosure document.
Nonetheless, the sections in the prospectus/disclosure document you should focus on are:
- The UTS’/PRS’ objectives;
- The investment strategy;
- Distribution policy;
- Fees, charges, and expenses;
- Risks; and
- Transaction Information.
There are a few fees and charges that you should consider:
- Approximate price of each unit – you may not be able to know the exact price at the moment you invest. Usually, the price of each unit is calculated the day AFTER you invest. However, the difference shouldn’t be substantial;
- Sales charge – more commonly known by the public as ‘commission’ for the Consultants;
- Redemption charge – the amount you will be charged for taking your investment out of the UTS/PRS. The redemption charge will generally be reduced if you hold your investment over a longer period of time;
- Management fee – the amount charged by the unit trust management company (UTMC)/PRS Provider for managing the UTS’/PRS’ investments; and
- Trustee fee – the amount charged by the trustee for safekeeping your investment.
The above list does not cover all the fees and charges involved. You can refer to the prospectus/disclosure document for the full list.
It depends on your personal circumstances and what you are looking to achieve by investing in a UTS/PRS. As a general guide, here are some things you should consider:
- What do you want to achieve by investing?
- How much do you want to invest?
- For how long do you want to invest?
- What risks are you willing to tolerate while investing?
No, you must never give money to your Consultant, be it physically giving cash or transferring money to his/her personal bank account. By doing this, you are putting your money at great risk because the Consultant may lose your money, regardless of whether or not he/she has any bad intentions.
Always make your payments in the manner prescribed in the prospectus/disclosure document.
No, you must not sign any blank forms. By doing so, you are putting your money at great risk. A Consultant with bad intentions could fill in the pre-signed blank forms to perform unwanted transactions using your money. On the other hand, a Consultant may not have bad intentions but he/she could fill in the pre-signed blank forms wrongly, inadvertently performing unwanted transactions.
Always fill in and complete all the required forms yourself before signing and submitting them.
Yes, you may do so for UTS but not PRS. This is known as the EPF Member Investment Scheme (EPF-MIS). However, EPF-MIS is subject to EPF requirements. However, not all UTS is available for you to invest your EPF money. For more information, please visit the following EPF’s webpage: https://www.kwsp.gov.my/member/investment.
Yes, you can. The proceeds from the repurchase/redemption will be paid directly into your EPF-Account 1 if you are below 55 years old.
Yes, you can get a ‘refund’ during the six (6) business day ‘cooling-off period’ provided that you meet the criteria:
- You are investing for the first time in a UTS/PRS offered by the unit trust management company (UTMC);
- You are not a staff of the UTMC; or
- You are not someone who can deal in UTS/PRS.
- You will get a refund of the amount invested and the sales charge within ten (10) calendar days.
If you do not meet the criteria for a ‘cooling-off right,’ you will simply have to redeem your investment and incur the relevant charges.
You will be given:
- a confirmation statement from the Distributor within one (1) week of all transactions made with regards to the UTS/PRS;
- an interim statement reflecting the transactions made within the reporting period (usually, six (6) months) and an interim report of the UTS/PRS;
- an annual statement reflecting the transactions made within the financial year together with an audited annual report of the UTS/PRS; and
- if your investment is made via EPF-MIS, quarterly statements from EPF.
You can check at:
- The websites of the unit trust management company (UTMC);
- The financial section of local newspapers, including the Lipper Weekly Fund Table published by The Edge Weekly;
- Interim reports, annual reports and performance statements from the UTMC; and
- Monthly or quarterly fund fact-sheets published by the UTMC.
Yes, you may ‘switch’ from one UTS/PRS to another provided that it is with the same Distributor. A switching transaction may be subject to a switching charge.
Not directly. Any taxes will be charged to the UTS/PRS, not to you specifically. That means that any returns you receive from investing in the UTS/PRS is yours to keep.
Yes. You can lodge a complaint online at https://www.fimm.com.my/investors/lodge-a-complaint/. Alternatively, you can also download FIMM’s Complaint Form and mail it to our office address or email it to firstname.lastname@example.org.
FIMM only handles complaints that relate to the conduct of Distributors and Consultants and regarding matters that breach FIMM’s Consolidated Rules.
Any other types of complaints can be directed to the relevant bodies, such as the Securities Commission Malaysia or the Securities Industry Dispute Resolution Center (SIDREC).
FIMM will carry out an independent investigation and you will be informed of the outcome in due course.
No, there are no fees imposed by FIMM for investigating a complaint.