Haha.. unfortunately to open account you need to have working permit or citizenship...

Question 1 : No it is not a hedge for inflation
Question 2 : Not necessary better alternative, higher risk higher gain... natural order of things. Invest to your risk tolerance.

If you can stomach -50% or more loss for your holdings, then you might consider alternative to FD. For those who can't even take a 2% loss then FD is the safest bet.

UT dividend is useless, you are paying from your right pocket to left pocket and get taxed in the process. If you don;t understand what I say you can ask further in the UT thread.

Stock dividend and interest paid from FD and bonds however, is a net gain for you.

This post has been edited by gark: Dec 10 2012, 03:28 PM

Does the dividend in UT even matter? if AMBMutual give you 9.9 cents, then NAV will be lowered by 9.9 cents as well.

Example : If UT is priced at 0.499 before ex-divided, after dividend you will receive adjusted unit price of 0.4 + 0.099 dividend paid to you (before tax).

You do not gain anything for UT dividends, don't be blindsided. The best way to see UT performance is growth in NAV or every 1 RM invested.

Anyway this is off topic, you want to know more. ask around in the investment fund thread.

This post has been edited by gark: Dec 10 2012, 03:53 PM

Off topic a bit..

An alternative to FD is going to list soon under the new ETBS (Exchange Traded Bond & Sukuk). Those under Miti can get Bumi allocation.

300 mil, 10 year DanaInfra Islamic Sukuk, guaranteed by Govt of Malaysia. Expected interest rate is 4.5% trade able in minimum amount of RM 1000.

Issuer : DanaInfra Nasional Berhad
Guarantor : GoM
Offer Size Up to RM300 million in nominal value
Use of Proceeds : To finance the capital expenditure and operating expenses in relation to the development of the MRT Project
Face Value RM100 per unit of DanaInfra Retail Sukuk
Maturity Date Tenth (10th) anniversary of the Issue Date
Profit Payment : Frequency Semi-annual
First coupon / profit date payment : 6 months from the Issue Date
Coupon / Profit Rate
Listing Bursa Malaysia under the ‘Loans and Bonds’ Board
Tax exemption under Section 127(3A) Income Tax Act 1967


This bond is a retail offering, means you can opt to sell at anytime without lockup period on bursa. Capital repayment if held to maturity.

Previously bonds have to be bought in tranches of RM 250K and involve a lot of fees and is illiquid (difficult to sell), which makes it a poor alternative to FD.

This post has been edited by gark: Jan 8 2013, 11:59 AM

It means the profit rate will be determined on the issuing date. This depends on the book building which is current on from 08/01 - 18/01. The expected profit rate is from 4.00-4.50%. If demand too high then profit rate tend to be low. If you want to be sure then wait for it to be listed on 02/02. I am waiting for it to be listed as well...

Buy now you risk getting a low profit rate (should be min ~3.8% however...), buy later, you might not get it at the price you want...

More or less very safe bond but just slightly higher than FD, tax free earnings, no holding period, easy to redeem online, no risk if held to maturity cause guaranteed by Govt (like FD).

This post has been edited by gark: Jan 8 2013, 01:51 PM

That is the expected rate after the book building. Could be higher or lower...

Anyway off topic a bit...


Today just placed some FD at Bank BTPN @ 7.75% for 12 month FD. Bank officer come to house to fill up the FD form and take the money. Good service.

This post has been edited by gark: Jan 16 2013, 07:17 PM

That's p.a. rate . This bank is in Indon, that's why I say off topic a bit. By the way effective rate is less, cause got tax in interest of 20%... but claimable later...

Cannot compare like that, house loan is based on reducing principal while your FD is constant.