ASNB is a unit trust management company (UTMC), just like Public Mutual, CIMB Principal, etc. These companies are under the purview of the SC, the funds (ASB, ASB2, etc) are being managed by ASNB but the actual money is being held by the trustees. The trustees have the responsibilities to intervene any unscrupulous transfer activities especially ones that go against the deed, mandate and objectives of the fund. Strictly speaking, it is not just like any other company - just want to clear that up

The funds are not capital guaranteed nor protected by PIDM, but if you look at these two factors:

1. fixed price per unit (RM1/unit)
2. Unlimited repurchase of all your units at any time, page 8

The points above suggest that the subscribers are free to withdraw his money at any time (Sunday to Friday, working hours). The minimum distribution is 0%, the funds would not able to deduct your units, and as long as the price/unit remains the same, your investment would hold its value. In essence, the company itself is guaranteeing your money - but they cannot go out and about to say so.

It goes without saying that if their investments go south, and the fund NAV is lower than the units outstanding, things would be looking bad - especially if they cannot liquidate fast enough for the unit repurchase. That has not happened as far as I know. In addition, they have been consistently paying distributions to their subscribers, I reckon the actual NAV/unit is higher than the price of RM1/unit. These are but speculations though, as there is no way to be certain unless you are an insider. SC has full access to these funds accounts too, and so far so good.

I put 50K in my ASB few years ago and topup another 10K last year. This year I withdrawn almost 30K from there. I am thinking to do ASB financing, what is your opinion on saving vs financing in ASB?

Agreed, but the dividend will not be that much as we are slowly saving from month to month. ASB financing would give a higher dividend amount, but the it will be split to pay the finance interest. So at last, after calculation I don't know which will be more beneficial let say if we save/pay the same amount every month.

1k of ASB saving monthly
1k of ASB financing payment monthly

yes, the NRIC is fine to open the ASB/ASNB accounts, but to apply for a financing, you need more documents than that. I can help with that if you would like to, otherwise, you can always take a trip to the bank. They will require basic financial documents, no different from any other financing
Depends, I don't remember your age because I did not link your name to your lowyat profile. I do remember we met for signing at a mamak near Endah Parade right? Sri Petaling.

Okay, here is the table to get 40-years tenure, it depends on your age. How old are you? if you are below 30 years old, it may be worth refinancing to get the longer tenure, but it is your call, I cannot force you to do one (status quo) or another (refinancing):


Due to the the fact that there is always a margin between the financing rate (4.85%) and the ASB distribution rate (7% last year), it is always much more beneficial to invest through financing. As someone below said, it is "free money".

Consider these calculations, assumption a return of 6.5%, and even if they fluctuate, both investments would be experienced the same amount of fluctuations since they are both invested in the same ASB account:

1) Cash investment, for RM945/m, 40-years, maturity value: RM2.061M



2) ASB Financing investment, for RM945/m, 40-years, maturity value: RM2.483M





That is correct. In a a way it is like any other investments. I will compare it to properties:

1. In properties:

a. You get rental income
b. You get capital appreciation (or if you are unlucky, depreciation)
c. You get a loan, and need to serve the instalments

2. In ASB-Financing:

a. You get distribution income (yearly basis)
b. Your capital is fixed though, the RM200,000 units that yo buy remain that way forever
c. You get a loan, and need to serve the installments

Investment in properties and investment in ASB through financing are similar in that they are both using the asset as collateral to get lower financing/interest rates. With these low rates, there is a margin between the financing rate vs the return rate. We earn a profit by profiting through this margin. 

The risk-levels are vastly different though, since with properties:

a. Capital can appreciate or depreciate
b. Fixed asset, takes time to dispose
c. Fixed asset, costs a lot of money to dispose including agent fees and applicable taxes (RPGT), charge to discharge
d. Require general (fire) insurance
e. Tenant default
f. Damages to the property

The list goes on. So for those who are eligible for ASB and thus ASB Financing, this is a no brainer.