ASNB Fixed Price Funds

As a Malaysian, I bet you have heard about “Amanah Saham Nasional Berhad” (ASNB) before. They are famous for their fixed price funds. If you have never heard about it, I shall give you some brief information about this investment company.

ASNB is a subsidiary of “Permodalan Nasional Berhad” (PNB). It acts as the fund manager for funds launched by PNB since 1979.

Okay, honestly, its history does not concern us that much (or at all). What are the fixed price funds?

 

6 fixed price funds

The table below shows the funds available in ASNB.

Fund Name	Logo	Asset Class	Eligibility	Financial Year End	Maximum Investment
Amanah Saham Bumiputera (ASB)		Equity	Malaysian bumiputera*	December 31	RM 200000
Amanah Saham Bumiputera 2 (ASB 2)		Mixed asset	Malaysian bumiputera *	March 31	RM 200000
Amanah Saham Wawasan 2020 (ASW 2020)		Equity	Malaysian	August 31	Unlimited, subject to availability of units**
Amanah Saham Malaysia (ASM)		Equity	Malaysian	March 31	Unlimited, subject to availability of units**
Amanah Saham Didik (ASD)		Equity	Malaysian bumiputera	June 30	Unlimited, subject to availability of units
Amanah Saham 1Malaysia (AS 1Malaysia)		Equity	Malaysian	September 30	Unlimited, subject to availability of units**

*Malaysian citizens of Siamese/Thai descendant, Portuguese/Eurasian descendant and non- bumiputera Muslim convert are also allowed.

**Each race has its own quota. Once the quota for your race is reached, you cannot purchase anymore.

 

Benefits

Why do I recommend these funds? I shall introduce their benefits now.

1. Fixed price (RM 1/unit) means there will be no price fluctuation. These funds can thus be regarded as saving accounts.

2. Money invested will not depreciate due to the fixed price. Worst case scenario will be that the value in the account remains constant. I do not foresee that ASNB will bankrupt.

3. These funds give consistent dividend. There is at least 6% dividend per year for all of these funds. It translates to 6% capital gain per year.

4. The dividend earned is not taxable. So, we do not have to worry about tax filing.

5. No sales charge. Unlike mutual funds or its own variable price funds, ASNB does not charge entry fee for these 6 funds.

6. On-the-spot redemption means you can get the money over the counter immediately. As long as it is a working day, you can withdraw your fund without any hassle (the only hassle may be the queue). Normally, you will receive cash for the redemption. Nonetheless, if the amount is too big, ASNB may issue cheque or use bank transfer. If you use money from Employees Provident Fund (EPF) to invest, the money from the redemption will go back to your EPF account.

 

Cons

What are the cons of these funds? Honestly, I could not think of anything bad about these funds. Though they are really too good to be true, I must say that they are REAL. The only drawback that I experienced last time was the requirement to go to the ASNB branch/agent to deposit. This problem is now mitigated with the opening of its online portal. However, the withdrawal must still be done over the counter. Maybe this is their only shortcoming.

 

Online portal MyASNB

This portal is functioning since June 2017. Once registered, you can check your balance and invest through the portal. The payment method will be done online through Financial Process Exchange (FPX).

How to register?  First, you have to go to one of the ASNB branches or its agents (Maybank, Maybank Islamic, CIMB Bank, RHB Bank, Pos Malaysia, Affin Bank, Bank Simpanan Nasional, Alliance Bank, AmBank and AmBank Islamic). Update your personal details, especially your mobile phone number. Make sure the number is correct as you will receive Transaction Authorisation Code (TAC) on your phone. What to bring along? Only your MyKad.

After that, go to the portal (Link) and click on Register (“Dartar di sini”). Follow the instruction and you will set up your online account in no time.

 

Conclusion

What are you waiting for? If you do not have these funds yet, I strongly recommend you to get one. Go to ASNB branch or its agent to open an account. If you are a bumiputera, go ahead and max out on ASB and ASB 2. They are specifically created for you to earn money. However, if you are a non-bumiputera like me, you might not succeed at your first attempt to invest due to the quota. But I urge you to keep trying. Have patience and you will be rewarded. And do not forget to apply for MyASNB too!