How I Invest My Money as a Self-Employed Person (Detailed Breakdown!)

Where do I invest my money?

In this article, I want to talk a little bit about the breakdown of my (boring) investment portfolio. I’ll also shed some info on the asset classes involved and what I want to improve or refine further. 

By the end, I’ll share some of my core investing mindsets (or principles, whatever you wanna call them) that I follow closely in my decision-making process.

Have a good read!

Now, a few caveats…

1. The market is dynamic (so is life). Our financial priorities change as we grow older. Hence, I am pretty sure how I invest today will evolve along with time and my priorities in life. 

2. The focus of this discussion will be on my long-term investment portfolio. This means that invested assets will be focused 100% on achieving my financial goal (Financial Independence, or FI). 

They will not be cashed out for other purposes other than portfolio rebalancing. 

3. Money allocated for savings and emergencies will NOT be included in this discussion. This is because there is a high chance that these monies will be used for purposes other than to achieve my financial goals. 

Read my articles on savings and emergency funds HERE and HERE

4. Money allocated for short-term trading will not be included in this discussion. The nature & purpose between trading and investing are extremely different and there is no reason for me to add them to this discussion.

With that in mind, please approach this post with a pinch of salt. Your investment approach and style should be aligned with your own priorities in life, risk profile, and more. 

Do consult a licensed financial planner if you are serious about building your own investment portfolio. I am also working with my personal financial planner and have written about my experience HERE


No Money Lah’s Investment Portfolio + Breakdown Discussion – June 2020

#1 Cash in Hand for Investment Purposes

There are a few reasons why 40% of my portfolio is in the form of cash.

Reason #1: Risk of income fluctuation as a self-employed. 

There are certain months where my income may be less than my intended average figure. 

Hence, at this point in time (June), I have a 3-months cash buffer allocated for my monthly investment routine as you’ll read in this article.

Reason #2: Cash reserved for different opportunities.

We never know what’ll happen in the market tomorrow. 

Especially in this current market condition, I have extra cash reserved to take advantage of any opportunities that may come knocking on the doorstep. 


#2 Stock Market (REITs) – Active Income Investing

How I Invest: Every month, barring nothing special happens, I will pump a specific sum of money into my selected REITs.

When it comes to the stock market, I focus particularly on Real Estate Investment Trusts (REITs)

This is the part of my investing routine where I am involved actively to research and study what to invest.

The reasons why I focus on REITs are because REITs’ volatility is generally milder relative to other sectors in the market, and I like the idea of consistent dividend payout from REITs (something like collecting rent as a landlord). 

Simply put, REITs are my niche and it is a sector that I can utilize my thought process & analysis skills with high competence to generate alpha (edge).

What I’d like to refine further: Starting to expose myself more to foreign REITs (ie. Singapore, HK & US REITs) for the 2nd half of 2020.

Note: Click photo to access this article.

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p.s. I am often asked if I feel ‘sayang’ for missing out on all the hot headline stocks. To be honest, I don’t.

For one, I do not have time to study these companies for long-term investment. Secondly, the moment you see a stock appear on the headline, you are probably way too late to join the game.

I focus on my niche and strength, and will not touch something that I am not familiar with. 


#3 Robo-Advisors (StashAway + Wahed) – Automated Passive Investing

How I Invest: Monthly automated debit order.

Yes, I am aware of the risk of overconcentration by just investing in REITs. 

Hence, I am also passively invested in robo-advisors like StashAway and Wahed to diversify my portfolio into ETFs of various industries and other asset classes (ie. Bond, Commodities, Sukuk). 

In terms of risk profile, I am mainly focusing on medium-risk portfolios from both platforms (StashAway: 14% Risk Index, Wahed: Medium Risk Profile).

The beauty of robo-advisors is that I can invest passively at a reasonably lower cost than conventional unit trusts. 

What I’d like to refine further: Nothing.

p.s. Use my: StashAway Referral Code and get 50% off your management fees for 6 months, as well as Wahed Referral Code (Code: YIXCHI1) and get RM10 bonus fund!

Note: Click photo to access this article. 

#4 PRS – Passive Investing

Just to take advantage of tax and government’s previous incentive.

Note: Click photo to access article

#5 Gold – Monthly manual debit order

How I Invest: Manual debit via HelloGold’s Smart Savers program

Personally, I think of Gold as a wealth preservation asset and a correlation hedge against overall market volatility. 

The reason why I choose to stick with HelloGold is that it allows me to be extremely flexible with the purchase amount, whereas other platforms have a minimum purchase of 1g. 

What I’d like to refine further: Increase monthly allocation in Gold, and start to have exposure in Silver in line with the increment of my income in the near future.

Note: Click photo to access article

#6 EPF – Passive Investing

How I Invest: Monthly manual debit order

EPF is an interesting matter to me as a self-employed. This is because unlike normal employment where there is a standard to how much you and your employer will contribute to your EPF, I have to manage my own EPF account.

This is done by opening my own EPF i-Saraan account and manage my own EPF contribution.

What I’d like to refine further: Increase monthly allocation in line with the increment of my income in the near future.


#7 Bitcoin – Not adding any positions 

Presently, most of my bitcoin positions are my unsold positions during my purchase in mid-2017.

They are relatively small as I was lucky enough to sell off the majority of my position nearly at the height of bitcoin’s $20,000 peak by the end of 2017.

That said, I am also eyeing to start increasing my holding on digital currencies moving forward. Just gotta dive in and do some research first.

What I’d like to refine further: Do deeper research into digital currencies.


#8 ASNB – No Luck

Seriously, if you can get your hands on Amanah Saham Fixed Price Funds, get it. 

The consistency of return and the nature of ASNB unit price (fixed at RM1.00/unit) makes it a no-brainer if you are looking to invest passively.

Unfortunately, I never really got much luck to get many units since I’ve written my piece on Amanah Saham last year *sigh*

Note: Click photo to access article.

Context: My Situation

I am 26 this year. As a self-employed, I run this blog and actively organize live REIT Income Investing coaching sessions – both of which I have a lot of fun doing.

In my downtime prior to Covid-19, I am also an International Table Tennis Federation (ITTF) certified table tennis coach (though that stream of income is no more today).

More importantly, I am also passionately working behind the scene to become a full-time funded trader (*fingers crossed*). This part of my life requires a dedicated post, but suffice to say it is a very challenging, yet exciting journey.

I am single and currently living with my family (it’s a blessing). Hence, I am able to reduce my living expenses significantly which enables me to pursue my goals wholeheartedly, while maintaining a respectable savings ratio.

All in all, my situation is likely going to be very different from many people, as I do not have a fixed monthly income. 

Financially, my situation requires me to be extremely disciplined with money. It also pushed me to think 2 to 3 steps ahead in terms of my income streams, which is why you’ll see things like cash buffer in place for my monthly investment routines.


My Investing Mindset + Approaches

1. Create a disciplined financial and investing routine. For me, I review my financials and investments every month-end, so I am always aware of my financial state. 

2. Take time to discover your investment style. Not everyone has the time & commitment to pick individual stocks. Not everyone can invest in volatile businesses. Everyone is different. 

For me, a hybrid routine of active REIT income investing coupled with low-cost passive investing makes the most sense to my personality, time, and commitment. 

3. Foundational skills like how to analyze a financial report is a MUST in active investing. I think there’s really no shortcut here. 

4. A stock investing plan without an exit strategy is NOT a plan. Market and businesses are too dynamic to buy and hold forever. 

5. 99% of headlines are mostly for entertainment purposes. Until you know what you are looking for, headlines and news can be extremely overwhelming. 

p.s. I don’t really care about the hottest stock in town. 

6. Leverage on technology. Low-cost passive investing platforms like StashAway and Wahed helped complement my investment routine so I am always diversified in other industries. 

7. Avoid investing with borrowed money. I avoid leveraged accounts and invest only with the money I have (ie. Cash Upfront account on Rakuten Trade).

8. Learn to make independent investment decisions. I use various resources to help me gather insights, but ultimately, I make my own investment decisions. 

Nothing helps me improve more than taking ownership of how I invest my own wealth. 

9. Focus on the process – keep learning and stay humble. Whenever I feel like I know everything, the market will prove me otherwise. A little humility goes a long way in the market. 

10. In the long run, successful financial goals and investing depend on one’s habits, mindset, and skillsets. And yes, it’ll take time. 


No Money Lah’s Verdict

Oh my, this is a long article! Thanks for reading till the end, and hopefully you find this post an insightful one!

Ultimately, it is crucial for us to acknowledge that investing is a very personal matter. How I invest will likely be very different from you, and there is really no right or wrong approach here.

Either way, personal finance and investing is a life-long journey. Our money and investment routine have to evolve as we step into different stages of life.

Hence, keep learning, stay humble.

p.s. Curious, where do you invest your money in? Feel free to share with me at the comment section below! 

Talk soon! :)


This is an article that I’ve always wanted to write about. In fact, I have several drafts for this topic, yet I never really landed on an approach to this article.

Big thanks to Mr-Stingy’s article on 'How I Invest My Own Money' (check it out!), which has helped me decide how I should approach this topic. You can also check out a similar topic from Ringgit Oh Ringgit HERE.


You Might be Interested: What'd I do If I Were to Start Investing All Over Again?


My Rant: Amanah Saham is Amazing BUT… (Part 3)

In Part 1 of my Amanah Saham article, I covered an overview of Amanah Saham investing and the benefits and risks of putting your money in Amanah Saham. For Part 2, we took an in-depth look into all 6 Fixed Price Funds by Amanah Saham (eg. Their stellar return).

Today, I will share my personal experience, insights, and thoughts of Amanah Saham investing with you!

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(1) Account Opening Process

Opening an ASNB account is relatively straightforward. You can either visit any of the ASNB’s branches or its agents to open your ASNB account – be sure to bring along minimum cash of RM10 for initial investment!

For myself, I went to one of the Maybank branches nearby to apply for my ASNB account. While the process is straightforward, there are quite a number of declaration and Know-Your-Customer (KYC) forms to fill up. (Note: Individual below 18 years old will need to have his/her guardian’s details filled up as well)

Forms to fill up during registration

From my experience, the account opening process at the counter took quite a bit of time, due to some lengthy account activation procedures – so be sure to allocate about 40 minutes for everything! For my initial investment, I only managed to open my ASNB account (ASM 3 – 1 Malaysia) with RM10. As there were no extra units available (minimum RM100 additional investment), I could not buy more units :(

Took me quite a bit of time for account opening.

(2) Buying Additional Units & Managing Your Investments via myASNB Platform!

myASNB is a platform by ASNB where you can manage your portfolio and purchase additional units of the fund without going to the counter. Although I did not manage to buy additional units when I register for my ASNB account, I can still try to buy it via the myASNB platform and app.

As a whole, I like the interface of myASNB platform and its app as they provide a clear and simple overview of my portfolio and they are really easy to navigate around. As for unit purchase, Amanah Saham’s Fixed Price Funds are open to purchasing from 7 am to 6 pm, Sunday to Friday and the third Saturday of the month, excluding public holidays.

Managing your ASNB account and portfolio via the myASNB platform/app.

(3) Everything about Amanah Saham investment is great, but there is one BIG catch…

As you may have guessed it: Getting your hand onto any of the Fixed Price Fund is extremely hard. With a minimum RM100 investment, it is most of the time, a matter of luck whether you can buy any of the funds even though you have an account.

Well, since Amanah Saham Fixed Price Funds are almost too good to be true, it makes a lot of sense that people would not sell their units once they get their hand on the funds. As of the time of the release of this article, I have been trying to purchase additional units of Fixed Price Fund via the myASNB app with no avail.

No luck :(

No Money Lah’s Verdict: Amanah Saham Fixed Price Funds – a game of luck?

Essentially, I retain my view on Amamah Saham’s Fixed Price Funds: these funds are indeed a great deal and, without doubt, one of the best long-term investment options for Malaysians.

That said, considering how hard it is to purchase additional Fixed Price Funds at the moment, I think you would either need to have a lot of commitment to try buying everyday on myASNB, or you could go find some alternative investment vehicles available in the market.

In short, researching about Amanah Saham has been an eye-opening and informative experience for myself, as I get to learn so much about one of the best investment options in the country.


Check out Part 1 and Part 2 of my Amanah Saham articles if you haven’t read them!

p.s. If you face the same problem buying Amanah Saham’s Fixed Price Funds, why not consider other investment options that are available in the market?

Investing in the sector of Real Estate Investment Trusts (REITs) is definitely one of my favorite long-term investment choices in the stock market, as REITs also give out competitive dividends and return. More details HERE.


Disclaimer: The accuracy of this content is based on the best effort by myself and at the time of writing. I do not guarantee the validity of this content as details and performance of ASNB and its funds will change over time. This article is also not a buy/sell recommendation. Please seek professional financial planner’s advice on this matter.


In-Depth Look: 6 Fixed Price Funds in Amanah Saham (Part 2)

In Part 1 of my Amanah Saham article, I talked about what is Amanah Saham and a brief overview of the benefits and risks of investing in Amanah Saham’s Fixed Price Funds.

For Part 2, let’s zoom in a little and have an in-depth look into the 6 Amanah Saham’s Fixed Price Funds that everyone is talking about:

(A) Before we start, a little recap…

Amanah Saham’s Fixed Price Funds are funds of which its fundamental value is fixed at RM1/unit regardless of the market condition. These funds are famous due to their 0% sales fees, a track record of bringing in consistent return, and its nature that serves as an excellent capital preservation investment option. More about this in Part 1.

As mentioned, there are 6 Fixed Priced Funds by Amanah Saham, namely:

Bumiputera-Only

Open to all Malaysians

Amanah Saham Bumiputera (ASB) Amanah Saham Malaysia (ASM)
Amanah Saham Bumiputera 2 (ASB 2) Amanah Saham Malaysia 2 - Wawasan (ASM 2)
Amanah Saham Bumiputera 3 - Didik (ASB 3) Amanah Saham Malaysia 3 – 1 Malaysia (ASM 3)

(B) Summary of each Funds’ return (%) over the past 5 Financial Years (FY)

As you can see from below, each fund has been reasonably consistent in their performance, albeit some funds’ return has slid down for a little – in line with the overall market performance.

Return of Fixed Price Funds over 5 past financial years (FY).

(C) Deep Dive into all 6 Fixed Price Funds

#1 Amanah Saham Bumiputera (ASB)

Established in 2nd January 1990, ASB is the first Fixed Price Fund by Amanah Saham. In terms eligibility, ASB is only open to Bumiputera, with a maximum investment of RM200,000.

ASB is a fund with a mixed portfolio of assets such as equities (73.56%) and other capital market instruments such as fixed income securities and bonds (26.44%). With more than half of its total capital invested in equities, it is important to find out which sector ASB has been investing in:

Top 3 Sectors (FY 2018)

Top 3 Holdings (FY 2018)

Financial (27.55%) Maybank (24.11%)
Services (21.01%) Sime Darby Plantation (9.61%)
Plantation & Agriculture (11.58%) Sime Darby Bhd (4.87%)

What we can tell from above is that ASB is pretty heavily invested in the financial sector of the country, namely Maybank, and rightfully so as banks generally give out a decent dividend.

Amanah Saham Bumiputera (ASB)

#2 Amanah Saham Bumiputera 2 (ASB 2)

ASB 2, which is also a Bumiputera-only fund, was launched in 2014 with a maximum investment of RM200,000.

In terms of the nature of the fund, ASB 2 is also managing a mixed asset of equities (81.96%) and some other instruments from the capital market (18.04%). What makes ASB 2 stands out among other Fixed Price Fund is that ASB 2 is the ONLY fund with more than 80% of its capital invested in equities.

Top 3 Sectors (FY 2019)

Top 3 Holdings (FY 2019)

Financial (25.93%) Maybank (9.93%)
Industrial (11.5%) CIMB (6.03%)
Utilities (10.19%) TNB (5.91%)

Without surprises, ASB 2 is also heavily invested in the financial sector.

Amanah Saham Bumiputera 2 (ASB 2)

#3 Amanah Saham Bumiputera 3 - Didik (ASB 3)

Another Bumiputera-only fund, what makes ASB 3 different from ASB and ASB 2 is that there is no cap to the maximum investment of each person but instead is subjected to the availability of units.

Similar to ASB and ASB 2, ASB 3 handles a mixed portfolio of assets, with 76.11% on equities and 23.89% on other capital market instruments.

Top 3 Sectors (2Q FY 2019)

Top 3 Holdings (2Q FY 2019)

Services & Trade (30.6%) TNB (9.02%)
Plantation (12.31%) Sime Darby Plantation (4.87%)
Industrial (6.74%) Petronas Chemical (4.34%)

Unlike the funds before, ASB 3 focused its capital mainly on services & trade sector.

Amanah Saham Bumiputera 3 (ASB 3 - Didik)

#4 Amanah Saham Malaysia (ASM)

ASM was launched in 20th April 2000, and it is one of the Fixed Price Fund in Amanah Saham that is open to all Malaysians. It has no cap when it comes to maximum investment, yet it depends on the availability of units for purchase.

As a fund that manages a mixed asset class, ASM has a 73.08% breakdown in equities and 26.92% in other market instruments.

Top 3 Sectors (FY 2019)

Top 3 Holdings (FY 2019)

Financial (20.78%) Maybank (7.68%)
Services (10.29%) TNB (5.93%)
Utilities (9.59%) CIMB (5.16%)

Just like most of the Fixed Price Funds, ASM places a big emphasis of its funds into the financial sector, with Maybank and CIMB being 2 of its largest holdings for the 2019 Financial Year. One thing to note is that ASM is the only fund that performed less than 6% return (5.5%) in its latest financial year – the first to slip under 6% among all 6 funds.

Amanah Saham Malaysia (ASM)

#5 Amanah Saham Malaysia 2 - Wawasan (ASM 2)

Launched in August 1996, ASM 2 is the first Fixed Price fund that is open to all Malaysians public to buy. Just like ASM, ASM 2 has no cap to its maximum investment, yet to purchase you got to depend on the availability of units of the fund.

In terms of asset breakdown, ASM 2 manages 79.39% of equities and 20.61% of other market instruments – making it the 2nd largest equity holding among all 6 funds (the 1st being ASB 2).

Top 3 Sectors (FY 2019)

Top 3 Holdings (FY 2019)

Financial (27.85%) Maybank (12.60%)
Services (23.83%) TNB (8.67%)
Plantation (10.12%) CIMB (7.27%)

 In terms of sector breakdown, ASM 2 is both heavily invested in the financial and services sector, hence any form of performance fluctuation in these sectors would definitely affect the performance of ASM 2.

Amanah Saham Malaysia 2 (ASM 2 - Wawasan)

#6 Amanah Saham Malaysia 3 – 1 Malaysia (ASM 3)

Being the latest addition of all-Malaysians Fixed Price Fund (2009), ASM 3 also has no cap to its maximum investment.

Just like all other Fixed Price Funds, ASM 3 manages 73.5% of equities and 26.5% of other capital market instruments in its portfolio.

Top 3 Sectors (FY 2018)

Top 3 Holdings (FY 2018)

Services & Trade (22.88%) Maybank (9.55%)
Financial (21.36%) Petronas Gas Bhd (5.77%)
Industrial (7.27%) TNB (4.56%)

For ASM 3, Services & Trade sector is one of the main holdings of its entire equity portfolio, followed closely by investments in the Financial sector.

Amanah Saham Malaysia 3 (ASM 3 - 1 Malaysia)

(D) Sector & Company Specific Risks

From the fund description above, it is not hard to spot that there are a lot of similarities between all 6 funds, namely:

Most of the funds either have a big and/or heavily invested in the financial and (some in the) services sector. This means that any news or fundamental changes in these sectors’ performance will affect the return of these Fixed Price Funds.

Of all, interest rate fluctuation is no doubt one of the major risks of banks (financial sector), as any changes in interest rate will impact the revenue of the banks.

Aside from that, there are companies that will always be in the podium of Top 3 Holdings of these funds, such as Maybank and TNB. While these are very reliable blue-chip stocks, any company-specific news could also affect the return of the Fixed Price Funds. (especially ASB and ASM 2 that have a huge holding of Maybank shares)


(E) So…Which Fund Should I Pick?

Firstly, from a pure return perspective, I personally think that any of the funds are okay as they have been giving pretty consistent return throughout the past 5 Financial Years (FY). That said, ASB is likely the favorite as it has been giving not only consistent, but also the highest return among all 6 Fixed Price Funds available.

However, your available options really depend on, well, your race. If you are a non-Bumi (like me), your options are mainly ASM, ASM 2 and ASM 3.

Another catch of these Fixed Price Funds is they are really, really hard to buy. In short, what you WANT to buy may not be what you COULD buy. Reason being, for each fund, a quota is allocated specifically to each race and once the quota is used up, you can only purchase the units if someone else is selling their holdings.

Essentially, you got to have some luck and keep trying if you want to buy into any of these funds (more on this in Part 3).


No Money Lah’s Verdict

So here you go, the in-depth view into all 6 Amanah Saham’s Fixed Price Funds! These are, in every means, some of the best long-term investment options available to Malaysians if you can get your hand on them.

In Part 3 (the final part of this Amanah Saham series), I will share my experience and personal thoughts on Amanah Saham investment with you – so stay tuned and subscribe if you haven’t already!

Do SHARE this article out with your friends and family if you find it useful, would ya’? :)


If you have yet to check out Part 1 of my Amanah Saham investing, be sure to check it out HERE

Disclaimer: The accuracy of this content is based on the best effort by myself and at the time of writing. I do not guarantee the validity of this content as details and performance of ASNB and its funds will change over time. This article is also not a buy/sell recommendation. Please seek professional financial planner’s advice on this matter.


What is Amanah Saham & How to Invest in it? (Part 1)

I have never paid much attention to Amanah Saham investment until a recent request from a reader to write about it sometime back in May.

In fact, my initial impression towards Amanah Saham was that most of its funds are for Bumiputras, and funds that are open to the public are very hard to buy – and that was everything I knew. But thanks to the request from that reader, I have found myself researching about arguably one of the most reliable investments that give a very solid return.

Without further ado, let’s find out more about Amanah Saham!

What is Amanah Saham?

Amanah Saham are funds that are managed by Amanah Saham National Berhad (ASNB), a subsidiary of Permodalan Nasional Berhad (PNB). ASNB was established on 22 May 1978. In short, ASNB is a government-supported unit trust management company.


Fixed Price Fund vs Variable Price Fund

As of the time of writing, there are a total of 14 Amanah Saham funds under the portfolio of ASNB, and of all, there are 6 Fixed Price Funds and 8 Variable Price Funds:

Funds open to all Malaysians are highlighted in yellow.

(A) What’s the difference between Fixed Price Funds and Variable Price Funds?

 

Fixed Priced Funds

Variable Priced Funds

Value Fixed @ RM1/unit. Varies according to the market.
Sales Fee 0% 3% - 5%
Performance Consistent (6%-7%) Fluctuating

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To give you a better picture, just take Variable Price Funds just like the conventional mutual funds in the market. As the name suggests, Variable Price Funds are funds that will fluctuate in value in accordance with the market movement. In terms of fees, Variable Price Funds also charge sales fees between 3% - 5%.

Simply put, for your Variable Price Fund investment to match the return of a 3% Fixed Deposit (FD) rate, your fund’s return will need to be at least 6% (assuming a sales fee of 3%) – which I wouldn’t recommend putting your hard-earned money in considering the inconsistent performance of all Variable Price Funds for the past 3 Financial Years.

On the other hand, ASNB’s Fixed Price Funds are the ones that everyone is talking about. The key strength of Fixed Price Funds (well, you have guessed it, didn’t you?) is the value of the fund will be fixed at RM1/unit no matter the market condition. Not only that, there is also no sales fees (yes, 0%) charged by all 6 Fixed Price Funds.

The best thing? All 6 Fixed Price Funds have been paying an average 6%-7% dividends consistently for many years, making them one of the most reliable investment vehicle in the market.

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Comparing 2 of ASNB's most established Fixed & Variable Price Funds

(B) All hail, Fixed Price Funds! (Benefits)

For all the reasons above, I will discuss specifically on Fixed Price Funds as these are what everyone is talking about when it comes to Amanah Saham investment.

Personally, I am genuinely happy to see that out of the 6 Fixed Price Funds, 3 (ASM, ASM 2, ASM 3) are actually open to all Malaysians, and I was delighted for good reasons:

#1 Unit value is fixed at RM1/unit:

Meaning, any market fluctuation will not affect the fundamental unit value of these funds. In other words, in the instances where the market is so bad that there is no dividend payout at all, at least the value of your fund will remain constant.

This makes Fixed Price Funds stand out as one of the best Unit Trust investment available in the market.

#2 Consistent Dividend:

Fixed Price Funds are famous for good reasons. One of them is because they are able to deliver a solid and consistent performance for a long period of time.

From my research, all 6 funds are able to deliver an average of 6% - 7% return on a consistent basis for the past 5 financial years (More about their performance on Part 2).

A consistent 6% dividend, when reinvested (which these funds do), will bring you a massive compounded return over a long period of time.

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RM10,000 compounded at 6%/year vs simple return

#3 Dividend Earned is not Taxable:

So you do not have to worry about tax filing.

#4 No Sales Charge:

Another highlight feature of Fixed Price Funds. Meaning, you do not have to pay any sales fee if you purchase any new units.

That said, Funds have full discretion to charge a 1% sales fee – just saying.

#5 On-The-Spot Redemption:

You can withdraw your investments and get your money immediately (either via cash/cheque/bank transfer).


(C) Risks & Cons of Amanah Saham investment (Fixed Price Funds)

One thing that we have to keep in mind is that there are no investments that are 100% risk-free. Here are some of the risks and cons of investing in the Fixed Price Funds of ASNB:

#1 Market Risks and Interest Rate Risk

All Fixed Price Funds’ performance and return are subject to the fluctuation of the market and interest rate.

While it is true that the unit value remains fixed at RM1/unit, dividend payout may fluctuate in accordance with funds’ exposure market and interest rate fluctuation.

#2 Capital not Protected

Your capital is not protected by Perbadanan Insurans Deposit Malaysia (PIDM) if ASNB goes bankrupt.

#3 Availability of Funds

As there is a quota capped to our race to these funds, when the quota is fully filled, you will have a hard time trying to get into these funds (unless suddenly someone let go of their units).

#4 Withdrawal Hassle

Any withdrawal of funds must be made over the counter at ASNB’s branches.


How to Register for an ASNB Account?

To register for an ASNB account, you must bring along your IC and the minimum cash needed for the initial subscription for the funds (RM10 for Fixed Price Funds), and apply at any ASNB branches or agents.


No Money Lah’s Verdict

In my opinion, I honestly think that if you can get your hands into any of ASNB’s Fixed Price Funds, it is no doubt one of the best money decisions that you will ever make, period.

For myself, I will go and open my ASNB account and start trying my luck to get my hands on any of these funds, and I will keep you all updated on my experience (so stay tuned and subscribe if you haven’t already!)

In Part 2, I will introduce and go through the performance of all 6 Fixed Funds with you, so you can decide which one to invest in after that! As for Part 3, I am going to share my personal view on Amanah Saham investment (plus my rants - you gotta check it out!).

Have a good read!


Disclaimer: The accuracy of this content is based on the best effort by myself and at the time of writing. I do not guarantee the validity of this content as details and performance of ASNB and its funds will change over time. This article is also not a buy/sell recommendation. Please seek professional financial planner's advice on this matter.

Credits to MyPF and MyFinTalk for their comprehensive writings on ASNB!


Note: For all my Bumiputera friends and readers that may be asking about to buy into Amanah Saham via cash or ASB Financing, definitely check out the articles by Crezki & KC Lau for more tips and info!