ASB is short for Amanah Saham Bumiputra.

It is a fund scheme that is exclusively limited to the Bumiputra. Think of it as a unit trust fund, like the ones from Public Mutual and CWA.

However that's as far as the similarity ends, its price per unit is fixed at RM1.00. You purchase your units in Ringgit, RM1 for 1 unit. When you want to sell it off, it is also RM1 for 1 unit. All this without any buying/selling fees.

Since the unit price is fixed, there is no capital gain for unit holders. They get their returns in the form of dividends that are given at the beginning of the year for investments/deposits made in the previous year, calculated based on each month's lowest balance.

The dividend of 8.5% is quite high but is still lower than returns generated by other fund companies in the past 10 years or more (depending on the fund companies). A typical unit rust fund from one of the top company can generate annualized return of 10% per annum. ASB, has a lower return than that, but hey, it is super stable.

Even during economic recessions and downturns (1997 and 2008) ASB kept on giving dividends, unlike unit trust funds that follow the market -market goes down, your unit price follows.

FInally, your capital is guaranteed by PNB (the manager of the fund). In the worst case scenario you would get back your capital. At least that is what they claim la.

hahaha dude, dont like that la. Everyone also normal people. Bumi advantage not that much pun. Most Bumis dont fill their RM200k quota anyway.

If you are keeping the money for long term, unit trust in equity funds may be more suitable due to its higher total return over the years compared to ASB. IF you are keeping the money for short term or chooses not to risk losing your capital, you can invest in bond fund in unit trust, it gives an annualized return of about 6% over the past 10 years

Noted. Sorry about that. Everyone, lets move the discussion or questions to the other thread.

Let's keep the thread clean.