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Investing in unit trusts can be a way for individuals to participate in the financial markets. Amanah Saham Malaysia (ASM) funds, offered by Amanah Saham Nasional Berhad (ASNB), are a type of fixed-price unit trust in Malaysia. These funds have historically garnered significant interest from investors. This guide provides information on ASM funds, including eligibility, the investment process, and strategies for acquiring units.

Understanding ASM Funds: What They Are And How They Differ?

ASM funds are fixed-price unit trusts, with each unit priced at RM1.00. They are managed by ASNB, a wholly-owned subsidiary of Permodalan Nasional Berhad (PNB), which is a government-linked investment company. A key difference for ASM funds, when compared to Amanah Saham Bumiputera (ASB) funds, relates to eligibility. While ASB funds are generally designated for Bumiputera investors, ASM funds are open to all Malaysian citizens, regardless of their ethnic background.

ASNB currently offers three fixed-price unit trusts that are open to all Malaysians:

• Amanah Saham Malaysia (ASM)
• Amanah Saham Malaysia 2 Wawasan (ASM 2 Wawasan) – formerly known as Amanah Saham Wawasan 2020 (ASW 2020)
• Amanah Saham Malaysia 3 (ASM 3)

Fixed-price ASNB funds aim for capital preservation by having the fund manager maintain a stable unit price of RM1.00. While not officially guaranteed, the security of these funds is supported by their manager, Permodalan Nasional Berhad (PNB). The objective is to protect your initial investment from day-to-day market volatility.

Eligibility To Invest In ASM

To invest directly in ASM funds, an individual must be a Malaysian citizen and at least 18 years of age. For those under 18, a parent or legal guardian can open an account on their behalf. There are no ethnic restrictions for investing in ASM funds, making them accessible to all Malaysian races.

Required Documents For Investment

To open an ASNB account and invest in ASM funds, you will generally need to prepare the following documents and information:

• Your MyKad / NRIC (National Registration Identity Card).
• An active Malaysian bank account.
• A valid email address and mobile number for account setup and communication.
• If investing online, ensure you have a registered myASNB account, accessible via the portal or app.

How To Open An ASNB Account?

Opening an ASNB account is a necessary step before investing in ASM funds. This process can be completed through several channels:

• Online: You can use the myASNB portal or the myASNB mobile application.

To register online: Download the myASNB app or visit the myASNB portal. Register for an account, which typically involves inputting your MyKad details, personal information, and setting up security questions and a password. You will need to undergo identity verification, which involves eKYC (electronic Know Your Customer) processes such as capturing images of your MyKad and facial recognition. Link your Malaysian bank account to your ASNB account, which is crucial for making investments and receiving redemptions. Finally, set up your transaction PIN.

• In-person: Visits can be made to ASNB branches, participating agent banks, or Pos Malaysia branches.

To register in-person: Visit an ASNB branch or an authorised agent bank/Pos Malaysia outlet during operating hours. Bring your MyKad (NRIC) and details of your active Malaysian bank account. Inform the counter staff that you wish to open a new ASNB account. Fill out the necessary forms provided and complete identity verification.

Where To Purchase ASM Units?

ASM units can be purchased through both online and in-person methods:

• Online: The myASNB portal, myASNB mobile application, Internet banking platforms of selected agent banks, such as Maybank2u, CIMB Clicks, or RHB Now, and certain e-wallets like Touch ‘n Go eWallet have also integrated ASNB investment features.
• In Person: ASNB branches, Pos Malaysia branches, and Agent banks such as Maybank, CIMB Bank, RHB Bank, Affin Bank, AmBank, Bank Islam, Bank Muamalat, Bank Simpanan Nasional (BSN), Hong Leong Bank, and Alliance Bank. 

Steps To Buy ASM Units (Assuming you have an ASNB account)

Here’s a detailed guide on how to subscribe to ASM funds once your ASNB account is open:

a) Via myASNB App/Portal:

1. Log In: Open the myASNB app or visit the myASNB portal and log in to your account.
2. Check Availability: Navigate to the “Buy Units” or “Transaction” section. Due to the high demand for ASM funds, units may not always be readily available. You will need to check the fund’s status.
3. Select Fund: Choose “Amanah Saham Malaysia (ASM)”, “ASM 2 Wawasan”, or “ASM 3” from the list of available funds.
4. Enter Amount: If units are available, enter the desired investment amount. The minimum initial investment for ASM is typically RM10, and subsequent investments can be as low as RM1.
5. Payment Method: Select your linked bank account for payment via FPX (Financial Process Exchange).
6. Confirm Transaction: Review all transaction details, including the amount and fund selected. Confirm the transaction using your ASNB transaction PIN or biometric authentication if set up.
7. Receipt: Upon successful completion, a digital receipt will be provided. It is advisable to save or screenshot this receipt for your records.

b) Via Internet Banking Platforms

1. Log In: Log in to your respective bank’s internet banking portal (e.g. Maybank2u, CIMB Clicks, or RHB Now).
2. Navigate to Investments/Unit Trust: Look for sections related to “Investments”, “Unit Trust”, or “ASNB”. The exact menu path may vary between banks.
3. Select ASNB Funds: Choose the option for ASNB funds investment.
4. Select Fund (ASM): Select “Amanah Saham Malaysia (ASM)”, “ASM 2 Wawasan”, or “ASM 3” as the fund you wish to invest in.
5. Enter Details: Input your ASNB account number, your MyKad (NRIC) number, and the investment amount.
6. Confirm Payment: Verify the details and proceed with the payment using your bank’s authentication method (e.g. TAC/OTP).
7. Receipt: A confirmation will be displayed, and a receipt may be provided by the bank.

c) In-person at ASNB Branches/Agent Banks/Pos Malaysia:

1. Visit Counter: Go to an ASNB branch, an authorised agent bank, or a Pos Malaysia branch.
2. Present MyKad: Provide your MyKad (NRIC) to the counter staff.
3. Fill Transaction Slip: Request a transaction slip for ASM investment. Fill in your ASNB account number and the desired investment amount.
4. Make Payment: Pay the investment amount in cash, cheque, or through a debit card (availability varies by agent and branch).
5. Receive Receipt/Passbook Update: The counter staff will process your transaction and provide a printed receipt or update your ASNB passbook, if you have one.

Risks And Expected Returns Of ASM Funds

ASM funds are considered low-risk investments because of their fixed price structure. While they are not capital guaranteed or insured by PIDM (Perbadanan Insurans Deposit Malaysia), their backing by a government-linked investment company generally provides a level of security. Over the last 5 years, the ASM funds have delivered annual dividends ranging from 3.75% to 5%. These dividends are paid annually and are reinvested automatically into additional units. It is important to note that past performance does not guarantee future returns.

Fees, Lock-in Periods, And Redemption Limitations

Regarding fees and charges:

• Sales Charge: For fixed-price funds like ASM, there is no sales charge (front-end fee) when purchasing units directly through ASNB channels (myASNB portal, app, or ASNB branches).
• Agent Bank Service Charge: When purchasing fixed-price funds through online banking platforms of agent banks (e.g. Maybank2u, CIMB Clicks, RHB Now), a service charge of RM1.00 per successful transaction is typically applied by the bank.
• Management Fee: The annual distributions already take into account the 1% management fee.
• Trustee Fee: There is also a trustee fee for the fund, which is generally a smaller percentage or a fixed amount. This is also embedded in the fund’s operations.
• Redemption Fees: There are no redemption fees for withdrawing your investment from ASM funds.

There is no lock-in period for ASM investments; investors have the option to redeem their units at any time.

Redemption Limitations

The ability to redeem units and the associated limits vary by channel:

Online Redemption (via myASNB portal/app):

• Minimum Redemption: RM100 per transaction.
• Maximum Redemption: RM2,000 per calendar month, accumulated across all ASNB unit trusts in your portfolio.
• Transaction Frequency: Limited to 3 transactions per calendar month.
• Processing: Funds are typically credited to your registered bank account on the next business day.

In-person Redemption (at ASNB branches or agent banks/Pos Malaysia):

• There are no specific maximum limits imposed by ASNB on the total amount of units you can redeem over the counter.
• For very large redemption amounts, it may be necessary for the branch to process the redemption via bank transfer to your linked account (credited next business day) rather than immediate cash payout, depending on the branch’s cash-on-hand availability.
• Processing: Immediate cash payout (subject to availability) or bank transfer (next business day).

When Are ASM Units Released And How Quickly Do They Sell?

ASM units typically experience high demand and can be fully subscribed within minutes of their release. There is no fixed public schedule for the release of new ASM units; they are often released in batches throughout the year. Their fixed price and historical dividend payouts contribute to their popularity among investors.

Improving Your Chances Of Acquiring Units

Given the high demand for ASM units, improving your chances of securing them may involve certain strategies:

• Enable Push Notifications: If this feature is available, enable push notifications from the myASNB app to receive alerts on unit availability or important announcements.
• Prepare Account and Funds: Ensure your myASNB account is fully set up and linked to your bank account. It is also advisable to have sufficient funds available for immediate transfer before attempting a purchase.
• Stay Informed: Monitor announcements from ASNB or financial news outlets that might provide indications of unit releases.

Common Mistakes To Avoid

To navigate the investment process more effectively, consider avoiding these common mistakes:

• Delayed Account Opening: It is advisable not to wait until a unit release announcement to open your ASNB account. Instead, open and set up your account well in advance.
• Confusing Eligibility: Understand the eligibility differences between funds like ASM (open to all Malaysians) and ASB (generally for Bumiputera investors).
• Unlinked Bank Account: Ensure your bank account is correctly linked to your ASNB account to facilitate smooth transactions.
• Infrequent Unit Availability Checks: Do not assume units will always be available. Regular checks, especially during periods of high demand, may be helpful.
• Assuming Fixed Returns: While ASM has provided stable dividends, remember that returns are not guaranteed to be fixed and can fluctuate based on fund performance.

Alternatives If ASM Units Are Unavailable

If you are unable to acquire ASM units due to high demand, there are other ASNB funds you might consider:

• Other Fixed-Price Funds: Look into ASM 2 Wawasan and ASM 3, which are also fixed-price unit trusts offered by ASNB and are open to all Malaysian citizens.
• ASNB Variable-Price Funds: ASNB also offers a range of variable-price unit trusts (e.g., ASN Equity 3, ASN Imbang 1, ASN Sara 2). These funds generally carry a higher risk profile but also present the potential for higher returns. It is advisable to review the fund’s prospectus and understand the associated risks before investing in variable-price funds.

For further insights into managing your investments or exploring other financial products, check out our blog.

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• ASM
• ASNB
• How-To