Unit trusts are the most common investment product in Malaysia after fixed deposits and ASNB. As of April 2026, the Securities Commission Malaysia (SC) oversees hundreds of approved funds across dozens of fund management companies, with total industry net asset value exceeding RM500 billion.
Yet for many Malaysians, buying a unit trust still means walking into a bank branch, sitting through a sales pitch, and paying a 5% upfront fee before a single ringgit is invested. That is an expensive way to do it β and it is no longer necessary. You can now research, compare, and buy unit trusts entirely online, often at significantly lower fees than the bank counter.
This guide walks through where to buy, what fees to watch, how to pick a fund, and the exact steps to get started.
What Is a Unit Trust?
A unit trust pools money from many investors and invests it in a portfolio of assets β equities, bonds, property, money market instruments, or a mix. A professional fund manager makes the investment decisions. You buy "units" in the fund, and the value of your units rises or falls based on the fund's performance.
In Malaysia, unit trusts are regulated by the SC under the Capital Markets and Services Act 2007. Every approved fund must have a trustee (usually a bank) that holds the fund's assets separately from the fund manager's own assets. If the fund management company goes under, your money is held by the trustee β not lost.
Note
Unit trusts vs. ETFs: Unit trusts are priced once per day (at the end-of-day NAV). ETFs trade on Bursa Malaysia throughout the day like stocks. Both pool investor money into diversified portfolios, but unit trusts are bought directly from fund managers or distributors, while ETFs are bought through a stockbroker. This guide covers unit trusts specifically.
Where to Buy Unit Trusts Online
Direct from Fund Houses
Most Malaysian fund managers now offer online account opening and transacting. The largest include:
- Public Mutual (Malaysia's biggest unit trust company by AUM)
- Eastspring Investments (formerly Prudential)
- AHAM Capital (formerly Affin Hwang AM)
- Kenanga Investors
- CIMB-Principal
- AmFunds Management
Buying direct means you deal with one fund house and can only access their funds. Sales charges vary β some offer reduced fees for online transactions.
Third-Party Platforms (Broader Selection, Lower Fees)
These platforms distribute funds from multiple fund houses, giving you a wider selection and often rebating sales charges:
| Platform | Fund houses available | Typical sales charge | Minimum investment | Key feature | |----------|----------------------|---------------------|-------------------|-------------| | Fundsupermart | 20+ fund houses, 600+ funds | 0β2% (most equity funds 0%) | RM100β1,000 | Widest retail selection, zero sales charge on many funds | | Phillip Mutual | 15+ fund houses | 0β2% | RM100β1,000 | Part of PhillipCapital group, research tools | | iFAST | 20+ fund houses | 0β2% | RM100β1,000 | Also serves institutional investors, portfolio analytics | | eUnittrust | Multiple fund houses | Varies | Varies by fund | SC Malaysia's own platform for direct fund purchases |
Bank Distributors
Maybank, CIMB, Public Bank, RHB, and other banks sell unit trusts through their branches and online banking platforms. The convenience is high β you can buy from the same app you use for banking. The downside is fees: bank-distributed unit trusts typically charge full sales fees of 3β5.5% upfront, and the fund selection is limited to the bank's distribution agreements.
EPF i-Invest
You can invest a portion of your EPF Account 1 savings into SC-approved unit trust funds through the i-Invest scheme. This uses your retirement savings rather than cash, and the approved fund list is curated by EPF. See our EPF i-Invest guide for full details.
Fees You Need to Understand
Unit trust fees are the single biggest drag on your long-term returns. A fund that returns 8% gross but charges 5% sales and 1.5% annual fees delivers significantly less over 10β20 years than a similar fund at 0% sales and 0.5% management fee.
| Fee type | Typical range | When it is charged | Who charges it | |----------|--------------|-------------------|----------------| | Sales charge (front-end load) | 0β5.5% | Deducted upfront when you buy | Distributor (bank, platform, agent) | | Management fee | 0.5β1.8% p.a. | Deducted daily from fund NAV | Fund manager | | Trustee fee | 0.04β0.08% p.a. | Deducted daily from fund NAV | Trustee bank | | Switching fee | 0βRM25 per switch | When you switch between funds | Fund manager or platform | | Redemption fee | Usually 0% (some funds charge in first 1β3 years) | When you sell units | Fund manager |
The maths on sales charges: If you invest RM10,000 through a bank at 5% sales charge, RM500 is taken immediately. Only RM9,500 buys units. Your fund needs to return 5.3% just to get back to RM10,000. On Fundsupermart with 0% sales charge, all RM10,000 works from day one.
The maths on management fees: A 1.5% annual management fee on RM100,000 over 20 years at 7% gross return costs approximately RM45,000 in lost compounding compared to a 0.5% fee fund. That is not a rounding error β it is a significant chunk of your retirement savings.
Warning
Always check the fund's prospectus for the actual fee schedule. Published sales charges are maximums β platforms like Fundsupermart rebate most or all of the sales charge. But the management fee is non-negotiable and comes out of the fund regardless of where you buy. A high-fee fund bought at 0% sales charge still has a high ongoing cost.
How to Choose a Fund
By Asset Class
| Fund type | What it invests in | Risk level | Typical return range | Best for | |-----------|-------------------|------------|---------------------|----------| | Money market | Short-term deposits, government securities | Very low | 2.5β3.5% p.a. | Cash parking, emergency reserves | | Bond / Fixed income | Government and corporate bonds | Lowβmoderate | 3β5% p.a. | Conservative investors, income seekers | | Balanced | Mix of equities and bonds | Moderate | 4β7% p.a. | Moderate risk tolerance, hands-off diversification | | Equity | Stocks (Malaysian, regional, or global) | Moderateβhigh | 5β12% p.a. (long-term average, can lose money in any given year) | Long-term growth, higher risk tolerance | | Sector / Thematic | Specific sectors (technology, healthcare, property) | High | Highly variable | Conviction bets on specific industries |
Shariah vs Conventional
Malaysia is one of the largest Islamic fund markets globally. Shariah-compliant unit trusts invest only in SC-approved Shariah securities β no alcohol, gambling, tobacco, conventional banking, or non-halal food producers. If Shariah compliance matters to you, most fund houses offer dedicated Shariah funds across all asset classes.
What to Look At Before Buying
- Fund factsheet β every fund publishes a monthly factsheet showing holdings, performance, fees, and risk rating. Read it.
- Past performance β look at 3-year and 5-year annualised returns, not 1-month or YTD numbers. Past performance does not guarantee future returns, but consistent long-term performance is a better signal than a single strong year.
- Fund size β very small funds (under RM50 million) may face liquidity issues or be at risk of closure. Larger funds generally have more stable operations.
- Expense ratio β the total annual cost (management fee + trustee fee + other charges). Lower is better, all else being equal.
- Benchmark β compare the fund's return to its benchmark index. A Malaysian equity fund that underperforms the KLCI after fees for 3+ consecutive years is not earning its management fee.
Step-by-Step: Opening an Account and Buying Your First Fund
Here is the process using Fundsupermart as an example (other platforms follow a similar flow):
Step 1 β Register an account Go to fundsupermart.com.my and click "Open Account". You will need your MyKad (or passport for non-citizens), a Malaysian bank account, and a valid email address.
Step 2 β Complete KYC verification Upload your MyKad photo, fill in your personal details, income information, and risk profile questionnaire. The risk profile determines your investor classification (conservative, moderate, aggressive) β this affects which funds the platform recommends, though you are not restricted from buying outside your profile.
Step 3 β Fund your account Transfer money via FPX (online banking) or bank transfer. Most platforms accept FPX for instant funding with no transfer fee.
Step 4 β Select a fund Browse or search the fund list. Use filters for asset class, Shariah compliance, risk level, and fund house. Read the factsheet and prospectus before committing.
Step 5 β Place your order Enter the amount you want to invest (minimum typically RM100β1,000 depending on the fund). Confirm the order. Units are allocated at the next NAV pricing point β usually end of the same business day if you order before the cut-off (typically 3β4 PM).
Step 6 β Set up a Regular Savings Plan (optional) Most platforms let you set up automatic monthly investments β select a fund, choose an amount (minimum RM100/month on most platforms), and pick a debit date. The platform auto-invests for you each month. This is dollar-cost averaging in practice.
Regular Savings Plans (RSP)
An RSP is the unit trust equivalent of a standing instruction. You commit a fixed amount per month, and the platform automatically buys units for you at each month's NAV. This removes the need to time the market and builds your position steadily over years.
| Platform | RSP minimum | Auto-debit options | Switching between funds | |----------|------------|-------------------|------------------------| | Fundsupermart | RM100/month | FPX, bank transfer | Free (within fund house, usually) | | Phillip Mutual | RM100/month | FPX | Free or RM25 depending on fund | | Public Mutual | RM100/month | Bank auto-debit | Free within Public Mutual funds | | eUnittrust | Varies | FPX | Varies |
RSPs work best when you commit for 5+ years and resist the urge to stop contributions during market dips. The entire value of DCA is that you buy more units when prices are low. Pausing during a downturn defeats the strategy. Read our DCA guide for the full breakdown.
Tax Treatment
Unit trust tax in Malaysia depends on the type of distribution:
- Income distributions from Malaysian-sourced dividends received by the fund are generally tax-exempt when passed to individual investors (for most Malaysian unit trusts).
- Capital gains from selling your units are not subject to capital gains tax for individual investors (as of April 2026 β note that the government has introduced capital gains provisions for certain asset classes; check the latest LHDN guidelines).
- Foreign-sourced income distributed by the fund may be taxable depending on the fund's structure and your tax residency status.
For most retail investors buying mainstream Malaysian unit trusts, the practical outcome is that distributions are tax-exempt or minimally taxed. Confirm with the fund's annual tax statement for your specific situation.
Common Mistakes to Avoid
Buying at the bank counter without comparing. The bank earns a commission on the 3β5% sales charge. The same fund on Fundsupermart may cost 0% upfront. Always check online platforms first.
Chasing last year's winner. The top-performing fund this year is rarely the top performer next year. Pick based on long-term track record (5+ years), fees, and alignment with your risk profile β not recent headlines.
Ignoring the management fee. A 1.7% annual fee versus 0.5% sounds small. Over 20 years on RM50,000, the difference is tens of thousands of ringgit in lost compounding. Check the expense ratio before buying.
Investing money you need within 12 months. Unit trust NAVs fluctuate. If you need the money in 6 months, use a fixed deposit or money market fund instead. Equity and balanced funds need a 3β5 year horizon minimum.
Not reviewing annually. Set it and forget it works for contributions, but review your fund choices once a year. If a fund consistently underperforms its benchmark for 3+ years, consider switching.
Getting Started
You do not need RM50,000 or specialised knowledge. You need RM100, an internet connection, and 30 minutes to open an account. Pick a low-fee balanced or equity fund on Fundsupermart or eUnittrust, set up an RSP, and let compounding do the work over the next decade.
The hardest part of unit trust investing is not picking the right fund β it is starting at all. If you have been meaning to invest but keep postponing, open the account this week. Your future self will thank you.
Fund availability, fees, and platform features are based on published information as of April 2026 and may change. Always confirm current terms on the platform or fund manager's website before investing. money.com.my is not a licensed financial adviser β this guide is informational, not financial advice.
This guide is AI-assisted with editorial review. Every factual claim is checked against primary sources (Securities Commission Malaysia, fund manager prospectuses, platform published terms) before publication. If you find an error, email editorial@money.com.my β corrections are published with a dated amendment note.