and yet many bumi prefer to spend their money on phones, cars and other tangible products

The impending launch of the second Amanah Saham Bumiputera (ASB2) fund will appeal to investors who have already reached their maximum investment limit in the original fund.

“The ASB is an established fund with a long track record, and many investors would have hit their investment limit of RM200,000 per individual,” said a fund manager who declined to be quoted.

“The new ASB2 offers an opportunity for them to increase their investment,’’ he said.

The original ASB was established some 25 years ago by Permodalan Nasional Bhd and boasted an uninterrupted stellar dividend track record.

Many of the fund’s early investors like pensioner Siti Rohani Abdul Kadir, who had kept her savings untouched in the ASB for about 20 years, had already tripled the money on their original investment.

Analysts believe the upcoming ASB2 will retain the original fund’s “uniqueness”.

As of Dec 31, 2012, there were some 7.82 million individuals holding 110.3 billion ASB units.

The ASB’s price per unit was fixed at RM1 and the maximum investment for each eligible individual was limited to RM200,000. The philosophy of the first scheme was to generate long-term, consistent and competitive returns to unitholders at minimum risk.

One fund manager said it was likely the ASB would be capital-protected, as the banks that lent money to potential ASB investors would want some form of guarantee.

“This was one of the main reasons why the banks lent money to many individuals who took up the ASB. If the ASB2 is not capital-protected, then I don’t see how potential ASB investors would get financing from the banks. Without financing from the banks, take-up rates won’t be great,” said one banking source.

The banking source said that the dividends for the ASB in the last few years were more than enough to offset the financing cost taken up by (ASB) investors to finance their investments. “Returns in the last few years have also been very attractive at about 8.5 sen.”

News reports have indicated that the RM10bil ASB2 fund will be launched in April this year. A daily yesterday speculated that the price of the ASB2 would be likely fixed at RM1.

Philip Capital Management Sdn Bhd chief investment officer Ang Kok Heng said the ASB2 had to show steady returns to deliver dividends that could match the first ASB.

“ASB2 is being launched at a time when the market is near a record high, so the fund has to do really well to deliver the good returns. It will be challenging in the short term, especially in the first year. However, over the long run, equities will still give better returns of more than 6%,” he said.

money put inside bank, nobody can see

buy house, kenot show off in town

so they buy expensive cars and gadgets to show their status

that's the sad reality

govt even facilitated them with ASB financing (through gov linked banks summore) and yet...

I think this spending habits applies to all races. Especially the Generation Z,

When u can put in or withdraw your funds easily like ASB there is a tendency to spend off your income/dividend. Whereas if it is shxting difficult to even buy funds like ASM/AS1M/ASW u tend to treasure it because it is so difficult to buy back.

I think I should donate my completed ASNB purchase forms to our museum now.

Why?

After so many trips, none has been used for the past few weeks!

The Post Office lady was helpful this afternoon trying to get some for me but none was available.

That is life, some get it and some don't. Ha.

Thanks tbheng, wil-i-am and davinz18.  Today went to open ASG persaraan and kesihatan. The unit price is so high, really 'rugi'.     Hopefully, the price will go higher and I don't lose out. The lady said that the dividend will be in early  April. Got a free bag.

For information, tried to open AS1M and ASM accounts, but none will let me open. Say no units

Tat xplain y it's tough for non bumi to buy ASW/ASM/AS1M

HQ. They didn't want to process or check at all. Told me that its full already although I was the only non-bumiputra there.  Its a backpack. Regret not spreading some of the $ to the pendidikan. Should have all 3 funds since who knows in the long term, which fund will outperform which.

Just order ice lemon tea to cool down