That 200k limit is for ASB funds. No maximum limit on ASM, ASM2 and ASM3 fund holdings.

check here  http://www.misterleaf.com/10350/amanah-sah...aysia-dividend/

For those not financial savvy, these funds have so far been the 'safest' n higher yield.

in terms of losing principal/capital

Financing approved: RM200,000
Takaful contribution: n/a
+ Protection amount: n/a
+ Protection term: n/a
Total financing: RM200,000
Financing tenure: 37 years (max)
Rate: 4.85%

Monthly Payment: RM971/month
Processing Fees: RM60 (one time, included in the first installment)

Finance for ASB1 & ASB2.  NOT any fp fund.

Dividend ASB1 6.50%
Dividend ASB2 6%

This is free money giving away.  You are not missing anything here.  Anyhow, not many bumi understand.

You are missing quite a lot. Try reading up on:

1. Amortization
2. Compounding interest

Thank you.
Apparently based on the above person's reply, plenty of non-bumi don't understand it either. As if they do not know that you can't simply compare annual interest rates and compounding returns; and proceed to make silly comments.

I rest my case.

Interest on the loans are paid based on a reducing balance. As you pay your installments, your interest payments get reduced.

On the other hand, you are probably already clear about compounding. For those who don't, compounding returns takes into account the previously accumulated returns plus capital when calculating the upcoming return

So in general, people who keep on mentioning 4.85% vs 6.5% really has some understanding to do. For example of actual calculation: after 5 years of taking up RM200k financing, the 4.85% interest on a loan balance of RM189k yields a different number than a 6.5% on the now compounded RM275k value.

then we can discuss the compounding returns, and when I said returns, it includes negative returns as well. Thus you may even have negative returns over the years like properties, or depreciation like cars.

But to talk about 4.85% vs 6.50% is just a folly, as if you can't relate the reducing balance interest (4.85%) vs the compounding returns (6.50%)