Reserves and no one knows the number of outstanding units. The NAV is about RM160B as of now, without the information on the number of outstanding unit, we do not know the actual NAV/unit

As it is, the units are being guaranteed by PNB, that at anytime, it will always be RM1/unit.

ASB was created due to the New-Economic-Policy, it is just "another" unit trust fund, with a twist - as mentioned above, the RM1/unit price. Created to encourage Bumiputera participation in the markets.

Whats your argument against “but ASB is haram”

I think this guarantee is more moral and/or political.

This is not the same like guarantees for Epf, Tabung Haji and PIDM. These 3 bodies are actually backed by Acts of Parliament. Meaning the guarantees are by law enforceable.

I don't think there is a PNB Act. Strictly speaking PNB is just another company. A Berhad. In fact I don't know where this guarantee is stated. Is it in ASB prospectus? Is there a letter of guarantee?

I think this guarantee is more moral and/or political.

This is not the same like guarantees for Epf, Tabung Haji and PIDM. These 3 bodies are actually backed by Acts of Parliament. Meaning the guarantees are by law enforceable.

I don't think there is a PNB Act. Strictly speaking PNB is just another company. A Berhad. In fact I don't know where this guarantee is stated. Is it in ASB prospectus? Is there a letter of guarantee?

sad aku bukan bumi

It is not exclusively for Bumiputras. In general (based on my understanding with Bumiputra-discounts for properties), people in category II below are not Bumiputras. Yet they are allowed to open and invest in these ASB/ASB2 accounts that people mistakenly thought are reserved exclusively to Bumiputras.
 

2 quick questions
If convert then it is eligible? If let say 2 years revert to original religion is it still eligible?

What the forecast dividend for ASB in 2020? Below 6% or 6.5%

Plenty of threads have been created about ASB financing in Kopitiam (mohon mods not  move this to the Finance sub-forum as this is more of a chill thread), this thread is no different except that it starts without the ignorance by the threadstarter (me) of the ASB fund and ASB-financing. Many (either purposely or sincerely) mistook ASB-financing returns as the difference between the interest rate vs the yearly returns (distribution). Nothing can be further than the truth. The loan interest is calculated as a reducing balance, while the distributions (often mistakenly referred to as"dividend") is calculated on a yearly compounding basis.
   
In a way, ASB-financing is no different than buying a house with a mortgage. Both has a collateral which backs the loan, allowing the bank to approve the loans at low interest rates (4.4%-4.85% VS personal loans and credit cards with much higher rates). The main difference is in the collaterals themselves. To buy a house, you would bleed money to:

a) buy - SPA/LA/MOT/SD/Valuation/MRTA/10%-deposit
b) maintain - damages/rental-defaults/maintenance-fees/sinking-funds/cukai-pintu/cukai-tanah/fire-insurance
c) sell - RPGT/agent-fees/charge-to-discharge

No such thing with ASB and ASB-financing. You can invest in ASB just like any other unit trust, but at the same time you have the option of taking a loan to finance the investment:

a) There are no deposits required, you can get 100% financing
b) No legal fees involved other than RM60 for endorsement and stamping fees (not stamp duty)
c) Distributions are calculated on a prorated basis, there are no "distribution defaults" like when you are renting out your properties
d) No fees nor taxes to sell, there is a ready buyer - ASB is always ready to purchase the units and return your investment value to you in cash

Projections and assumptions:

1. Bank interest (financing) rate of 4.85% p.a - which may change according to the bank's base-rate (BR) movement
2. ASB expected returns of 6.5% p.a - which is lower than the historical lowest return of 7% a year for 2018 distribution
3. Loan and investment tenure of 35 years - maximum tenure, for 30 years old and below
4. Distributed units left in the ASB account to experience the effects of compounding
5. A small one-off insurance with the bank's panel insurance for RM350, capitalized into the financing

Total unit value after 35 years: RM1,812,450.97


Total loan repayment after 35 years: RM416,665.20


Bonus info. Total unit value after 35 years, but with cash-investment of the same monthly installment of RM992.06: RM1,528,086.67 . A difference of RM284,364.30 compared to investing using financing

So non-bumi can get it or not?  :confused:

Returns is so now.
Still worth to take loan?

Cannn. Need to potong.

5. When you choose to refinance, consider advantages below, if they are suitable, go ahead and do so:

a) lower interest rates than the ones you are currently experiencing
b) longer tenure (new products, longer tenure)
c) returned capital (some of you have mistaken taken long and expensive ASB-f insurance, and would receive very little capital, you can get the rest from the insurance companies later but that is besides the point)

As far as i understand from my muaalaf clients, they would like to see your nric to show "islam" on it.

Not sure the implications of converting to previous religiong though.

I have no idea on the forecast. When calculating, i use 6 to 7% as the assumed rate - in financial planning both parties have to agree on the asumed rate, otherwise it would not get anywhere

It is not exclusively for Bumiputras. In general (based on my understanding with Bumiputra-discounts for properties), people in category II below are not Bumiputras. Yet they are allowed to open and invest in these ASB/ASB2 accounts that people mistakenly thought are reserved exclusively to Bumiputras.