Amanah Saham Bumiputera – What is it and how does it affect you?

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The Amanah Saham Bumiputera or ASB was launched back in 1990 and it has since flourished for Bumputeral Malaysians. Offered under the management of ASNB or Amanah Saham Nasional Berhad, the ASB is one of the best performing funds. ASNB is part of the PNB or Permodalan Nasional Berhad.

What is ASB exactly?

ASB is a fund launched to help Bumiputera Malaysians to save and invest money. It promises an instrument that is long-term and also a low risk with good returns. ASNB has been offering very good returns on investments since it was launched and has been doing so even during the economic downturn that occurred during 2008. This unit trust fund is offered at RM1 per unit and is offered to eligible investors where they can invest up to 200,000 units per individual.

How is ASB a good investment?

ASB is an investment platform that is available only for Bumiputera Malaysians. It is easy to apply and is one of the most promising funds anyone (eligible) should consider. What makes ASB a good investment tool is that:

  • Low fees – An annual management fee of 0.35% is charged and that is among the lowest while it is about 1.5% for other unit trusts. There are no upfront fees required.
  • Funds disbursement – As an investor, you have access to your funds which you can withdraw very easily. You can choose to withdraw RM500 per month or do so from most of the agents of ASNB (Maybank, CIMB and others).
  • Returns – This is perhaps the most attractive factor why you should invest in ASB. It has been giving dividends each year since 1990 without fail between % to 14%. This puts it among the highest among any other forms of investments. 14% was the dividends in the first year it was launched and it has been above 10% until 2000. While this has decreased ever since it has still been issuing dividends of about 6-7% each year.

Getting into ASB

You need to have an account with ASB if you want to enter this market. Essentially, you need to be a Bumiputera citizen of Malaysia. Then, visit a branch or an agent and then open an account. They have made it very easy to invest in ASB. You can do so through your own funds or you can choose to use your Account 1 in your EPF to invest in ASB2 (not ASB). Alternatively, you can use your monthly deduction from your salary to invest. They also provide an ASB loan where you can ‘borrow’ the amount from the bank and invest. However, you need to pay the loan back to the bank (or the agent) and this is usually done and completed through a term-loan system very much like any other loans you will take from a bank.

 

 

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