yes. people complain about ASB-f giving banks money, but they never complained about mortgages also give banks money. It is either ignorance or plain "you-tongkat" sentiments in play everytime people mistakenly-argue against ASB-financing. It has its cons, but these people are pointing and arguing at the wrong trees .

Thank you
You can't argue and give fatwa if you are not one of these things below. You can only keep it to yourself, which is referred to (taqwa).

1. Appointed by the government in power
2. Educated in fiqh
3. Educated in the matter at hand (in this instance, Finance)

If everyone who belajar from their ustaz (who is not super qualified anyways, especially not in finance) is giving out Fatwa, the Islamic world would be quite in chaos - as in more chaotic than it is right now. In this instance, I would refer to the Majlis Fatwa Negara and the Fatwa Council in the SC. ASNB, as a Unit Trust Management Company (UTMC, just like Public Mutual and CIMB Principal) would be under the purview of SC.

I was referring to the downside of manual monthly investment.

yes. people complain about ASB-f giving banks money, but they never complained about mortgages also give banks money. It is either ignorance or plain "you-tongkat" sentiments in play everytime people mistakenly-argue against ASB-financing. It has its cons, but these people are pointing and arguing at the wrong trees .
You are wrong. After 35 years, the 1.8M is all your money. There is nothing to tolak.

Lolx.. I never say ASB to settle national debt...

If it’s indeed so good, why not hire those ppl who can make tons of $ to help national to invest better.

Don’t twist my sentence.. anyway, as long as related to bumi/etc.. Jagan dipersoalkan.... kan...

ic. i china. can hoot asb?

got T&C right?

Plenty of threads have been created about ASB financing in Kopitiam (so don't need to move this to Finance sub-forum la), this is no difference, but it starts without the ignorance of the thread starters. 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

And I understand.

Now imagine someone invested RM993 a month for the next 12 months... at 6.5% return, he would have received RM415 in distribution. This distribution would have increased his soft cap.

After 137 months, this fella would have about RM200k in his ASB account. RM136k as his principal investment , and RM64k as dividend earned. At this point, his capping would have increased by RM64k, and he can continue to invest his cash on a monthly basis

bro.

ASB method:

After 35 year, total units left in ASB is RM 1,812,450.97. This RM 1,812,450.97 belongs to the investor.
But throughout the same 35 years, the investor would have also have to pay a total of RM416,665.20 to the Bank. This RM 416,665.20 belongs to the bank not the investor.
So, of course need to tolak.

Can I take a loan to buy?

No?

with this anti bumi govt, i expect dividend 1% or so like tabung haji

Yeah. but the investor won't be able to deposit more because already reach cap at 200k...

Strategy wise. If have lot of money put je 200k. I have fren full asb1 n 2. Proxy his wife and children. Total initial investment like 1.6million. Thats was way back.now dunno sudah brapa untung

I have solution to solve malaysia national debt, remove the 200k asb deposit limit, make it unlimited, everyone and their son go borrow 1mil from bank to put in asb and earn that sweet sweet 3%. For sure whole bumi being millionaiire

Yes. Masuk Islam. Not kidding

And I understand.

Now imagine someone invested RM993 a month for the next 12 months... at 6.5% return, he would have received RM415 in distribution. This distribution would have increased his soft cap.

After 137 months, this fella would have about RM200k in his ASB account. RM136k as his principal investment , and RM64k as dividend earned. At this point, his capping would have increased by RM64k, and he can continue to invest his cash on a monthly basis