I understand your point is generally true but can you point toexample of actual return comparison of Malaysia unit trust Vs Malaysia index fund? I am asking because I like to invest in those fund available in Malaysia.

while waiting for his response...
may I kay poh abit....

found this on google....
Malaysia Unit Trust vs ETF, which one is Better Performing?
Author: Shane My | Publish date: Mon, 2 May 2016, 08:51 AM

Recently I came across a statistic that says only 4% of Mutual Funds in America were able to outperform the Market Index. That makes selecting a fund to invest in the United States is akin to searching for a needle in a haystack. The first question which appear on my mind was how many of our local unit trust funds were able to outperform the Kuala Lumpur Stock Exchange (KLSE) Index? How many funds in Malaysia that have outperformed the KLSE Index? This brings me to this blog post which I am about to share with you.
http://klse.i3investor.com/blogs/invest_made_easy/95755.jsp

Summary
Over in the United States, the general advice for investor is to pick ETF over Mutual Funds as tghe choice of passive investment. Apart from the under performing Mutual Funds as stated in the beginning of this post, charges and fees of Mutual Funds are rather high. These fees would ultimately eat into the total return of mutual funds resulting in further under performance.

However the strategy of picking ETF of Mutual Fund is not a practical strategy for Malaysia market. If a Malaysian investor were to invest into ETF over mutual funds, he or she would probably make a whole lot lesser as proven in the statistics above.

This post has been edited by MUM: Jul 10 2018, 09:34 PM

Thanks for the example.

I'd just like to say that ETFs are NOT illiquid due to the presence of a market maker. Market makers ensure that the price of an ETF is always close the the underlying assets and ensure liquidity. Even if no one else is trading, the market maker can buy from you or sell to you. As for returns, it depends on the ETF, ABFMY1 bond fund is standing at 4.22% average 10 year returns. They primarily hold Malaysian Government bonds. It's better than FD atm and it had an impressive 8% return for 2019.

4 Reasons To Consider Investing in Exchange-Traded Funds (ETFs) With Bursa Malaysia



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