Types of Investment Funds in Malaysia

Updated on Thursday 29th September 2016

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Entrepreneurs who are considering investing in a fund in Malaysia can pick the right type of fund according to size, investment needs and goals and other factors. Some types of investment schemes are best used by experienced investors while others are more accessible.

Malaysia has a mature investment fund market and several options are available to those who want to set-up a collective investment scheme. Our law firm in Malaysia is able to provide you with adequate counseling and advice for your investment plans in the country.


Collective investment schemes in Malaysia


The types of collective investment schemes available in Malaysia include:
-    unit trusts;
-    real estate investment trusts;
-    exchange-traded funds;
-    close-end funds;
-    foreign collective investment schemes;
-    Islamic unit trusts.

Our lawyers in Malaysia can help you with additional information about the rules and regulations set forth by the Securities Commission regarding all of these fund types. The sustainability of one type of fund, as well as its risks, should be carefully calculated before making an investment decision.


The Unit Trust Funds


Equity funds, balanced funds, and money market funds are three types of unit trusts that can be set-up by investors in Malaysia. The difference between them lies not only in the type of effective investment but also in their objective and growth in time. For example, an equity fund can provide capital appreciation over the medium and long term and is suited for aggressive investors who target risk-return rewards. On the other hand, the income or bun fund provides a regular income and is more suited for conservative investors.

The balanced fund is a good solution for those investors who want to invest in stock and in bonds. It offers a regular income and can show good growth over time. Real Estate Investment Trusts can also be a good option for foreign investors in Malaysia who target investments in properties, usually commercial units.

The experts at our law firm in Malaysia can help you with more information about the investment legislation and how you can set-up a fund in the country. Contact us for more information and advice.

 

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