It depends on what you are really asking:

a. if you have already maxed your "unit boleh beli" limit (starts at RM200,000 for everyone), the only way you can add more is by earning distribution. As you earn your distributions, your limit increases

b. however, as you earn your distributions, those distribution-units would take the space of your increased limit anyway. So in that sense your "unit boleh beli" limit will remain filled up, as long as you do not withdraw these distributions

c. if you do withdraw them, you can deposit the same amount later in the future since the limit remains the same as per when you withdrew the units

For example:

1. Today you opened ASB account

Limit: RM200,000
Balance: RM0

2. Today you got a RM200,000 financing, and it is disbursed today into your account

Limit: RM200,000
Balance: RM200,000

3. In January 2021, you earned RM14,000 distribution for investments made in 2020

Limit: RM214,000
Balance: RM214,000

4. In January 2021, you withdrew RM14,000 for personal use

Limit: RM214,000
Balance: RM200,000

5. In October 2021, you deposited RM14,000 to completely fulfill your limit

Limit: RM214,000
Balance: RM214,000

You can always start here: Ultimate Discussions of ASNB Fixed Price UT

Take note that I am not a trained Islamic scholar by any means so you have to find the truth on your own. I would base my answer on this:

Is Zakat Due When My Mortgage is Greater Than My Assets?Based on the answer above, your installment on the ASBF function as a one-time deduction on your zakatable assets, not inclusive of the assets that are still under encumbrance (properties with mortgages, asb units under asb financing). For example:

1. Assuming your nisab is RM14,000
2. You have RM200,000 ASBF, monthly installment is RM1,000/m
3. You have RM40,000 in your ASB account, that is cash-investment including the distribution that you have earned
4. Your zakatable-asset is RM40,000 - RM1,000 = RM39,000

My prediction is 6.25 + 0.25%

A note here.

1. PNB is the owner of ASNB (the Unit Trust Management Company) that manages the funds that you are familiar with (ASB, ASB2, ASB 3, ASM, AS1M, etc.). PNB are separate entity from ASNB; PNB own multiple ventures/operations that generate profits for the company. PNB may also own shares, and some of these holdings may be the same ones owned by the ASNB funds; and by pooling their holdings together, they own huge chunks in a number of public companies in Malaysia. For example: Sime Darby, Maybank, etc.

2. Let's look at the predicted ASB returns some of us have thrown out. Although it seems that 6.25% + 0.25% and 6.00% +0.50% are the same (6.50%), there are different implications between these returns. ASB returns are quoted in [X + Y] = Z%

a. X is the fund distribution (sen/unit) set by the fund manager, heavily based on the fund investment performances throughout the fiscal year

b. Y is the bonus (sen/unit) paid by PNB to ASB investors. PNB do this because ASB is their flagship fund and they want ASB returns to look good.

3. Let's look at these two returns:

a. 6.25% + 0.25% = 6.50%
b. 6.00% + 0.50% = 6.50%

In (a) the ASB fund itself performed poorly so PNB had to prop it up by declaring higher than usual bonus, whereas in (b) the ASB fund performed as expected, prompting PNB to pay the usual level of bonus. I much prefer for (b) to happen

This post has been edited by wild_card_my: Dec 18 2019, 12:44 AM

You are most welcome~

Lowest in history.

1. This wildly affect those that are "rolling" their distributions since they would have paid more than they are getting back this year. But keep in mind that part of the installments paid is the capital repayment

2. Also affect those that are looking to be cash-positive (RM1k a month x 12 = RM12k) but with only RM11k distribution, it will be cash-flow negative for these investors.

3. When there is a margin between the financing rate vs return, you can expect profitability

4. Compare this situation of 5.5% return and 4.85% financing interest, for a 35-year investment, assuming that these figures remain the same that is.

RM394k total installments paid


RM1,302M total return

Ah yes, the red-highlighted text was jumbled. But you got the idea right?

As per my discussion with the PNB high-up, the bonus calculation is the same as the distribution calculation

There wouldnt be any ASB2 financing anytime soon. You can open the ASB2 account right from the comforts of your home though, through online portal. Just add RM100 into the account

Financial year end for this fund is 31st March, so distribution pay out is on the 1st April, distribution is calculated based on the previous 12-months average monthly-minimum balance.

I imagine that is is because ASNB closes on Saturday. No transaction can happen during these times. They operate From Sunday to Friday, to cater to those Islamic states that moved their Sunday to Friday

You definiteley could do that over the counter, either at ASNB branches or at their Agent Banks like MBB, CIMB, HLBB, etc.

Yeah you could do that. that is called making an advanced payment, this way you dont have to think about making the commitments every month. It depends on the bank though

but why would you wnat to do that? why not just make normal monthly payments and keep the money you have in hand deposited into ASB2 (if your ASB1 already full)

erm, you should know if they are ASb1 or AASB2. ASB2 is quite hard to come by. What are the loan sizes? You can also look at the bank portal, look at the loan names, it will usually mention ASB or ASB2

Current best rate is 4.75% p.a. for 40 years, till the age of 65 by the way

You can verify my calculations on your own using financial calculator:

1. ASBF: RM200,000, 27 years and 3 months at 3.95 p.a. to get the RM1000/m installment

After 12 months, the loan balance is RM195,829
Close the account, the certificate size is RM200,000, so you get RM4,171 cash in hand
As for your ASB distribution at 5.5%, you will get RM11,000

Total cash in hand is RM15,171, with RM12,000 capital outlay

2. FD: RM1,000 a month for 12 months at 3.5%
Keep in mind that you do not start you investment with RM12,000. You deposit RM1,000 a month, each month, with the 3.5% return calculated on a pro-rated basis for each day's balance (daily rest)
FD is somewhat beneath what I need, so if I am mistaken with the calculation, FD fans can please help me ya. And 3.5% p.a. return is somewhat average right? I can change it to 4% and it would not change anything

So total cash in hand is RM12,230, with RM12,000 capital outlay

Yes, that is how it is supposed to be. You are supposed to save money each month anyways right? Do so through ASB financing, while you pay for you financing, the RM200k (or whatever you certificate size) will earn more than than the financing rate.

For my clients in the past year, they have been paying 4.70% p.a (due to changes in the BR) on a reducing balance of RM200,000 (this loan balance reduces as you pay your installments) while earning 5.50% p.a. as distribution on the RM200,000 certificate size. If that is not "free money" I do not know what it is

ASNB app on your phone

On the app, you need to try to buy some units, then they will take you to the page where the will tell you what is your "baki boleh beli"

Do some maths, and you will know what your actual softcap is. Can ask here or any ASB threads if not sure

Easy. The accumulation of your distribution.

1. For example, you opened your ASB account in Dec 2018, you got an ASBF for RM200,000 and it was deposited into you account on Dec 2018

2. You won't get any distribution for Jan 2019 because of the monthly-minimum balance of Dec 2018 being 0

3. In Jan 2020, you will be getting RM11,000 as your distribution. Your softcap has increased by RM11,000 now and will not reduce even if you withdraw the RM11,000 you have just earned

4. Throughout 2020, you have been leaving RM211,000 in your ASB account. In Jan 2021, the distribution was announced at 6%. You earn RM12,660. Now you softcap has further been increased by RM12,660, thus bringing your total softcap to RM23,660.

5. Your balance in now RM223,660. Suppose you withdraw RM23,660 form the account. Your balance is now RM200,000. Your softcap remains at RM23,660, which means you can deposit this much money into your account in the future if you want to

Yes but sometimes you would need to use this cash that you have earned through the distributions, consider it as an emergency fund. People who are not eligible for ASB have to go through FD, which has lower rate of return and locked down for months at a time to get the best rates.

We have access to this case and can use it anytime, and when we want to deposit the cash back in, we are welcome to do so. Isn't that wonderful?

Corect, but consider it as your emergency funds. you are supposed to have at least 6x of your salary as emergency funds anyway. Why put it elsewhere but ASB that is giving you better returns than its close alternatives?

You have both liquidity and good-returns in one. Look at the people in the ASNB Fixed-price funds, they are spamming the BUY button just to buy RM1000, RM4000, etc. units at a time. They get lower returns and NO LIQUIDITY (because once they are out, they wont be able to get back in, they need to redo the process)

Some of them work together and do direct transfer between members here, for a commission of course that ranges from 2 to 5% !!! Ada sales charge some more! They do what they can and I respect them for it

But for us that are eligible? We complain (to some extent). Hahaha. Just putting it out there, that we should feel grateful for the amenities that have been afforded to us