I'm Chinese always wanted to invest in ASB T.T any loopholes for me?

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

Great knowledge tq👍

You are most welcome~

Finally the figure had come out

As expected 5.50%, not lucrative return anymore

Hopefully banks will reduce interest rate atleast to 4.0 to keep ASBF competitive

Otherwise many will say goodbye to asbf

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

Shouldn't it be the other way round?

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

Thinking of opening ASB2 account to supplement my current ASB account. Any information/advice that I need to consider?

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.

Just got this notice & I wonder what's up with that..

A bit clueless here

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

I suppose that's the case.

So, opening the account is done online nowadays? Or are there options where I can do it over the counter?

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

wahai TS yang bijaksana,

ayam already have asb financing

but can ayam dump all savings money into the asb financing account(like normal asb)? does that means ayam still need to do commit every month?

ayam a bit pening over this konsep

Noted with thanks. 👍