Amanah Saham Malaysia (ASM) RM 5 Billion Quota

asm rm 5 billion

ASNB has announced the increase in the quota of Amanah Saham Malaysia (ASM). The quota has been increased by RM 5 billion.



Dividend trend

Below is the dividend of ASM for the past 10 years.

2014: 6.60%

2015: 6.60%

2016: 6.30%

2017: 6.00%

2018: 6.50%

2019: 5.50%

2020: 4.25%

2021: 4.00%

2022: 4.00%

2023: 4.50%



Should we deposit more money into ASM?

With this increase in quota, we no longer face difficulty in depositing money into ASM. The question now is should we do it?

Let’s analyse its past dividends. ASM paid at least 4% dividend in the past ten years. Going forward, I think this is the minimum dividend that we will get from this fund.

Each account has an investment limit of RM 100,000. Assuming you invest till this maximum limit, you would get RM 4,000 per year. Furthermore, if you do not withdraw the dividend, you will get dividend for all RM 104,000 in the account for the following year. The amount would be RM 4,160. This definitely does not look bad given that we can withdraw without restriction. The only trouble is we might need to be present at the counter to take out large amount of money.

As I have mentioned in the previous articles, the fixed price funds, including ASM, are my emergency fund now, instead of investments. I prefer to put my money into Simpan SSPN Prime to claim the tax relief. Until the tax relief ends, I do not think I would put more money into ASM. Nonetheless, I think ASM represents a good place to park extra cash if you happen to have some sitting in fixed deposits. There is a good chance that its dividend rate would increase back to pre-Covid pandemic level in the future.

What do you think about the quota increase in ASM? Let me know in the comments section below.



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Disclaimer: This article is for informational purposes only. It is not a recommendation to buy or to sell financial instruments nor an offer to buy or sell financial instruments. 

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