TAX BENEFIT FROM UNIT TRUST

TAX BENEFIT FROM UNIT TRUST

INTRODUCTION
THE TAXATION OF UNIT TRUSTS
SECTION 61 – THE INCOME TAX ACT, 1967 (“the Act)

INCOME OF UNIT TRUST DIVIDED INTO
1) DIVIDEND
2) INTEREST OF PROFIT GAIN FROM SALES OF INVESTMENT
3) RETURN OF BONDS

IMPORTANT
GAINS OF DISPOSAL OF INVESTMENT – WILL NOT BE SUBJECT TO
INCOME TAX

REASON
MALAYSIA GOVERNMENT’S EFFORTS TO PROMOTE UNIT TRUST,
MOST INCOME RECEIVED BY UNIT TRUST WILL BE EXEMPT FROM
INCOME TAX.

EXEMPT INCOME
1) SECURITIES OR BONDS ISSUED OR GUARANTEED BY THE
GOVERNMENT
2) DEBENTURES, OTHER THAN CONVERTIBLE LOAN STOCKS,
APPROVED BY THE SECURITIES COMISSION
3) BON SIMPANAN MALAYSIA ISSUED BY BANK NEGARA MALAYSIA

TAX BENEFIT OF UNIT TRUSTS PASSED ON TO UNITHOLDERS
TAX-EXEMPTED INCOME WILL BE DISTRIBUTED TO UNIT HOLDER &
UNIT HOLDERS WILL NOT BE SUBJECT TO INCOME TAX

IMPORTANT: FD VS UT
IF CORPORATE INVESTOR WERE TO DEPOSIT FUNDS IN FD –
INTEREST OF FD WILL BE SUBJECT TO INCOME TAX AT NORMAL CORPORATE RATE INCOME TAX – 28%

THEFORE, MORE BENEFICIAL FOR THE INVESTOR TO INVEST IN THE UNIT TRUST SINCE CERTAIN INCOME
FROM THE SAME TYPE OF INVESTMENTS WOULD BE TAX EXEMPTED.

Warm regards n at service,
ANUAR ASPURI
UNIT TRUST CONSULTANT
019-7646651

SOALAN-SOALAN LAZIM TENTANG UNIT AMANAH

1) Berapa sebenarnya dividend unit trust?


Dividend unit trust adalah diantara 10% hingga 15% setiap tahun terkompoun dengan syarat mestilah disimpan lebih daripada 3 tahun. Prestasi sebenar pelaburan public mutual yang sebelum ini ada dana memberikan pulangan 100% dalam masa 5 tahun, maka setiap tahun agihan dan kenaikan modal memberikan dividen terkompoun sebanyak 15%. Ini dapat dibuktikan melalui formula FV=PV (1+i) n. Tetapi dalam keadaan ekonomi sekarang, pelabur yang baru melabur 6 bulan telah mendapat pulangan diantara 20% hingga 30%, mereka boleh mengeluarkan duit tanpa perlu menunggu 3 tahun.


2) Saya takut harga turun naik. Katakan saya beli pada harga RM 0.25, adakah saya akan rugi sekiranya selepas 5 tahun apabila saya ingin menjual unit amanah saya pada ketika itu harga seunit hanya RM 0.20?


Unit trust bermaksud pengumpulan unit. Setiap pelabur diberi pemilikan dalam bentuk unit. Unit akan bertambah setiap kali pemberian dividend tahunan. Setiap tahun pemberian unit adalah berdasarkan unit yang terkini. Setelah tahun ke lima unit di dalam pegangan pelabur semakin bertambah dan didarabkan dengan harga semasa RM 0.20, pelabur TIDAK RUGI. Ini dibuktikan melalui prestasi sebenar, Public Ittikal pada tahun 1997 harga pengenalan seunit adalah RM 0.95, pelaburan bernilai RM100,000 telah menjadi RM 199.987 pada 2005 walaupun pada ketika harga jualan Public ittikal hanyalah RM 0.75. Secara logiknya duit pelabur hanya tinggal RM75,000 tetapi mengapa pelabur untung? Ini disebabkan unit di dalam pegangan telah meningkat melalui pemberian dividend tahunan.


3) Apakah beza diantara KPF, bank rakyat dan unit trust?


KPF adalah Koperasi Permodalan Felda yang memberikan dividen 10% hingga 14%. Bank Rakyat pula adalah 15%, Dividen KPF & Bank rakyat adalah payout. Sekiranya dilaburkan 10 tahun, 10 ribu di KPF @ Bank rakyat hanya memberikan RM25 ribu (capital + payout dividen) manakala unit trust adalah dividen terkompoun dan terbukti RM 34 ribu dalam masa 10 tahun. KPF & Bank Rakyat tertakluk dibawah akta koperasi dan mempunyai had yang terhad. Pelabur terpaksa menunggu giliran dan had KPF hanya RM250 ribu sahaja.


4) Boleh tak duit saya jadik kosong?


Pelaburan unit amanah dilaburkan di dalam berpuluh kaunter malahan beratus kaunter. Pegangan adalah dalam bentuk unit. Unit tidak akan berkurang walaupun seunit. Risiko untuk duit hilang amatlah tipis memandangkan duit pelabur di dalam "safeguard" pemegang amanah sepeti amanah raya berhad, maka syarikat pengurusan unit amanah tidal boleh sewenang-wenangnya melaburkan duit pelabur. Semua aktiviti pelaburan adalah tertakluk di bawah "surat ikatan" ataupun "DEEDS".



5) Apakah yang akan saya dapat, bila saya melabur?

Dalam masa 3 minggu encik akan dapat statement daripada public mutual. 2 kali setahun encik akan dapat report separuh tahun “interim report” dan laporan tahunan “ Annual report”.



6) Apakah perbezaan pelaburan KWSP & Unit Trust?

Pelaburan KWSP kebanyakannya dilaburkan di sekuriti dan bon kerajaan Malaysia, maka pulangannya adalah rendah berbanding unit trust. Pelaburan di KSWP memerlukan 14 tahun untuk sekali ganda, manakala di unit trust terbukti 5 tahun sekali ganda.



7) Apa perbezaaan pelaburan ASB & Unit Trust?

ASB adalah di bawah PNB dibawah kerajaan, Public mutual adalah syarikat unit trust swasta. ASB memberikan dividen terkompoun 8% manakala Public Mutual daripada 10% hingga 15%. Duit di ASB memerlukan 9 tahun untuk sekali ganda manakala Public Mutual terbukti 5 tahun sekali ganda.



8) Adakah pelaburan unit trust telah dizakatkan?
Pelaburan unit trust adalah tidak dizakatkan. Pelabur perlu mengeluarkan zakat apabila cukup haul dan nisab.


Untuk setakat ini dahulu saya menulis, anda ada persoalan atau ingin lebih lanjut faham mengenai ASAS UNIT AMANAH, walaupun anda tidak bersedia untuk menjadi agent, hanya inginkan ilmu;

Di jemput hadir ke J PLATINUM OFIS, 15-2, Jalan Suria 7, Bdr Seri Alam. hway pasir gudang, exit ke tesco seri alam, BARISAN BSN , atas restoren satay celup melaka tingkat 2.

AHAD 9.00 pagi.


Apapun persepsi dan tanggapan, marilah kita berhijrah mencari pelaburan yang lebih islamik dan difahami risikonya dengan jelas.

Terima kasih,
Anuar Bin Aspuri
019 764 6651

ISLAMIC UNIT TRUST

ISLAMIC FUNDS IS POPULAR AMONG MUSLIM & NON-MUSLIM AS

PER BELOW REASONS;

1) RESILIENT NATURE OF SHARIAH-COMPLIANT FINANCIAL SECURITIES, NO
EXPOSURE TO CONVENTIONAL BANK AND OTHER FINANCIAL STOCKS, THEY
HAVE MANAGED TO AVOID THE EFFECTS OF THE U.S. SUB-PRIME
MORTGAGE CRISIS.

2) AS QUANTITATIVE FILTER, SHARIAH-COMPLIANT ARE SUBJECT TO
RESTRICTIONS ON THE AMOUNT OF CONVENTIONAL LEVERAGE
PERMITTED AT THE PORTFOLIO COMPANY LEVEL.

FOR MORE INFO,

ANUAR BIN ASPURI

UNIT TRUST CONSULTANT
+6019764 6651

Does Compound Interest Really Apply to Unit Trust Investment?

Does Compound Interest Really Apply to Unit Trust Investment?

UNIT TRUST is an easy means of obtaining a spread of INVESTMENT. It is suitable for passive investor, who doesn’t want to, or doesn’t have extra time to invest their cash savings. For an investment capital to grow, we must not underestimate THE POWER of COMPOUND INTEREST what Einstein calls the “8^th WONDER OF THE WORLD.”

Question from investor:

Does compounding interest really apply in unit trust? if so, can you show me how does it apply? If possible, please include how to forecast an investment in unit trust. For example, if I invest RM10,000 today in equity fund, what will i get in 20 years time? In fact, the answer can be “yes”, and also “no”. It depends on how you apply the power of compounding interest. If you know how to apply it, unit trust really shows you the power of compounding effect. If you are not mentally prepared, the power of compounding interest is just a myth.

What is the power of compounding interest?

Let’s look at the definition of compound interest:

Interest that accrues when earnings for a specific period are added to principal; thus interest for the following period is computed on the principal plus accumulated interest.

It means you don’t withdraw the interest earned from you capital. Just let the return stay in your investment account and let it compounds. Your next interest return will be calculated using the accrued principal plus interest.

For example, you save RM1,000 in a Fixed Deposit account giving you 4% interest return per annum. Provided that you don’t withdraw any sen from the account, your account balance will look like this:
After 10 years untouched, you will have a total of RM1480.24 in your FD account. If you keep the money there for another 10 years, it not only earns you another interest of RM480.24, but a total of RM1,191. Leave it there for 50 years, you will get a magnificent total of RM7,107.
The growth is exponential. The most interest earned is at the last few years. The exponential growth will be more significant towards the end.

How to “employ” compound interest?

Imagine you have a loyal employee called “compound interest”. He will work for you day and night non-stop. All you have to do is not to disturb him at work. Let him concentrate to do his job for you. At the end, he will definitely deliver the magnificent results for your hard earned money.

In order to enjoy the power of compound interest, make sure you provide the perfect working environment:

1. Start saving and INVESTING AS SOON AS POSSIBLE.
2. Let your savings and investment accrued and compound as long as possible
3. Try to get the best investment return with bearable risk

How to apply compound interest in unit trust investment?

No matter where you put your money, provided the money is still yours, compound interest will work for you. Consider the following places where you save your money

• under your pillow - compound interest still works, but with 0% interest rate.
• in saving account - compound within 1-2%
• in fixed deposit account - compound 2.5 % p.a.
• in unit trust - compound with a wider range, say -5% to 20%
• in shares - compound with an even wider range, say -50% to 100%
• in properties - hard to predict. If you buy a house that’s never completed, you lost your capital plus interest charges of your mortgage. However, some experienced property investors can get their money compounded many fold per annum.

But if you spend the money instead, I guarantee that compound interest won’t work for you anymore, because the money is no longer yours.

You can even use borrowed money to invest. For instance, you get a home loan to buy house, or borrow money from your parents to invest in stocks. If you manage to get a higher return than the interest charges, compound interest is working for you.

But if you borrow money to spend, compound interest is working against you. The harder it works, the poorer you are.

In order to let compound interest works its wonder in unit trust investment, you should:

1. Never repurchase your fund unit - let your capital stays in there as long as possible. When you want to lock the gain from time to time, use switching facility.
2. Review your portfolio performance regularly - make sure it is giving you positive return as often as possible
3. Invest as early as possible - start investing when you are still young. It will give you the longer term to invest and get through all the equity roller coaster ride when you reap the return at the end.
4. Invest as much as possible
5. Never get tempted to spend your earning - just leave your return in the fund. Forget about it! Leave it until you reach your financial freedom.

How much can you get from RM10,000 initial investment after 20 years?

Use the compound interest formula to calculates the value of a compound interest investment after ‘n’ interest periods.

FV = PV( 1 + i )ⁿ

where:

‘FV’ = Future value after ‘n’ interest periods.
‘PV’ = Present value of Principal, the amount invested at the start.
‘i’ = the interest rate applying to each period.
‘n’ = the number of interest periods (number of years for per annum computation)

From the reader’s question above,”If possible, please include how to forecast an investment in unit trust. For example, if I invest RM10,000 today in equity fund, what will i get in 20 years time?“. In this case,

PV = RM10,000
n = 20 years
i = whatever annualized return you think your equity fund can produce

When i = 10%
FV= RM67,275

When i = 15%
FV = RM163,665

When i = 25% (Hey, this is better than Warren Buffett’s portfolio, the world’s best investor)
FV = RM867,362

In fact, it depends on how your investment portfolio is doing for the long term. Sometimes an EQUITY can give you 40% return in a year. Sometimes it makes a loss of 30% in extreme bear market. If your portfolio can produce 15% return per annum consistently, that’s already marvelous.

Summary for Action

Through the power of COMPOUNDING, a small amount of money over time can grow into a substantial sum. Investments can increase in value over time - and the longer the time frame, the greater the value. This is achieved through returns that are earned, but not spent. When THE RETURN is reinvested, you earn a return on the return and a return on that return and so on. Therefore in order to benefit from the power of compounding returns, you must invest as much as possible, in a lump sum now! And keep on investing or saving whenever you got spare cash. Just don’t spend it!

INVEST NOW!

CALL ME WITH NO OBLIGATION,

ANUAR BIN ASPURI
UNIT TRUST CONSULTANT
+6019764 6651

WE ARE NOW IN BULL MARKET, NO DOUBT!

Info below taken from NST, Tue 11 Aug

1) MONEY SUPPLY, DERIVATIVES WILL CONTINUE TO BOOST EQUITIES

-We are in the bull market now NO DOUBT, but there will be corrections.

-Emerging market (CHINA & ASIA) shares will continue to outperform the US and global stocks

-More money are being supplied into the system by government and bank start to lend again.

-Share prices will be further boosted by the use of derivatives.

2) FULL RECOVERY WILL TAKE OVER 2 YEARS

3) GLOBAL ECONOMY CAN RECOVER IN NEXT 18 MONTHS

Investors can still find emerging markets, although you have missed the best buying chance at the end of last year;

For your further action:

11 november 2008 to 17 Aug 2009

OUR RETURN FOR ISLAMIC FUNDS;

Public Islamic Opportunties Fund – 41.54%

Public China Ittikal Fund – 44.44%

For more info visit www.publicmutual.com.my search at FUND PERFORMANCES

Do not miss the chance!

warm regards and at service;

ANUAR BIN ASPURI

UNIT TRUST CONSULTANT

+6019764 6651

WHO SUFFERED THE MOST DURING A RECESSION? THE RICH OR THE POOR?

Let’s look at some situations people face during this recession, which is affecting more and more people nowadays:

· Individual insolvencies increased

· Interest rates cut

· Falling housing sales and reduced equity values

· Companies are downsizing, rightsizing, and filing for bankruptcy

· No job security

· Unemployment rate continues to get worse

Interest Rates Cut

It is expected that interest rates will be cut by the federal banks to reduce the cost of borrowing. Hopefully this will help some businesses to get through their cash flow problem. At the same time, it may “encourage” people to take the money out of their saving accounts, and use it at other areas such as investment, or just simply spend it to help drive consumer spending.

The lower interest rate affect the return of the poor since most of them don’t know what to do with their money except keeping it in the fixed deposit. How about borrowing money to invest (buying properties etc)? The poor don’t know where to invest. Moreover, banks are reluctant to lend money to them, especially during a recession.

How about the rich? They can borrow money at lower cost because the banks know that the rich are capable of making more money out of the loan.

Falling housing sales and reduced equity values

In the subprime incident, poor people borrow more money on their own inflated residence. When house price drops, they owe bank more money than the value of their home, causing negative equity.

You may say that the rich has more real estates, and mostly acquired for investment purposes. Yes, in fact the rich lose more value in their properties holding. But don’t forget that the rich buy properties for the rental income yield. For the worst case, they may have to sell a few properties at a significant loss. Yet, they are still rich. For instance, they make $50k per month from rental properties during good time, but only make $30k during this recession. Anyway, they still make more money than the poor.

Companies are downsizing

The rich own the companies. They downsize by firing the poor, so that they can keep their money and companies.

Inevitably, their companies’ valuations tumble. Let’s say from $100million to $50million. They are still multi-millionaire. They still drive a big car. They still stay at their comfortable home. They still go for vacation.

But the poor has lost their job, in deep debt, and find themselves very difficult to find jobs elsewhere.

Who suffered the most?

The poor or the rich? Being rich doesn’t make you recession-proof. But the poor will definitely be suffering more than anybody else,

THE RICH INVEST IN RECESSION TIME!

Call me with no obligation;

ANUAR BIN ASPURI

UNIT TRUST CONSULTANT

+6019764 6651