Personal Finance Term
Unit Trust
A pooled investment where investors buy units in a professionally managed fund that holds a diversified portfolio of stocks, bonds, or other assets.
In Malaysia, unit trusts are sold by licensed agents (including banks and independent advisors) and regulated by the Securities Commission (SC). Fees vary widely: the initial service charge (sales load) can range from 0% to 5.5%, and annual management fees typically run 0.5%–2%. Both erode returns over time.
Most unit trusts in Malaysia are priced at NAV (net asset value) daily. Unlike EPF savings, unit trust values fluctuate with market conditions — there is no capital guarantee. Shariah-compliant unit trusts are also available, screened according to AAOIFI or SAC Malaysia standards.