Investment may be intimidating to some people as they would be constantly pondering if it’s the right time to buy or sell investments. Thus, it is no surprise that some still prefer to hold on to cash.
Though holding cash or cash equivalents is not necessarily a bad thing, holding too much or too little can put your long-term goals in jeopardy¹.
In other words, by not investing, you are potentially keeping an asset where its value will be eroded by inflation.
But what is inflation, exactly?
Inflation is the decline of purchasing power of a given currency over time². It is when the cost of goods and services increase faster than the cash you hold, and the money you have will buy fewer and fewer goods and services over time.
To fight inflation, one has to look out for ways to keep wealth growing over time and that is to start investing as early as possible.
One of the easier ways is by investing in unit trust funds, whereby it will be managed by a group professional fund managers.
To add to that, you can decide how you want to invest in unit trusts.
There are 3 ways: lump sum investment, making regular contributions and using EPF savings. Investment with EPF savings will be suitable for:
- those who are experiencing having low disposable income, and as such may not be able to afford additional funds for investment, or
- those who intends to further enhance their retirement savings.
This is where the Members Investment Scheme comes into the picture. As a member of Employees Provident Fund (“EPF”) with sufficient savings^, you have the flexibility to transfer part of the funds in your Account 1 for investments via the appointed Fund Management Institutions (“FMI”).
Visit: EPF i-Invest FAQ to check your Required Basic Savings in Account 1.
Hong Leong Asset Management Bhd (“Hong Leong AM”), an appointed FMI, has a total of eleven (11) EPF-approved funds, four (4) of which are award-winning funds:
| Fund name | Category | 1-Year Growth (%) | 3-Year Growth (%) | 5-YearGrowth (%) |
|---|---|---|---|---|
| Conventional Funds | ||||
 |
Equity | 28.98 | 94.60 | 113.26 |
|
|
Equity | 68.38 | 90.33 | 118.92 |
|
|
Equity | 27.93 | 59.24 | 83.32 |
| Shariah-Compliant Funds | ||||
 |
Equity(Islamic) | 80.12 | 138.33 | 151.44 |
Source: Lipper as at 31 October 2021
Sources:
Disclaimer:
This article has not been reviewed by the Securities Commission Malaysia. Investors are advised to read and understand the contents of the Hong Leong Master Prospectus dated 23 August 2019, First, Second and Third Supplementary Hong Leong Master Prospectus dated 18 November 2019, 27 March 2020 and 31 December 2020 respectively (the “Prospectus”) and Product Highlights Sheet (the “PHS”) before investing. The Prospectus has been registered and PHS lodged with the Securities Commission Malaysia which takes no responsibility for the contents of the Prospectus and PHS. The registration of Prospectus or lodgement of PHS with the Securities Commission Malaysia does not amount to nor indicate that the Securities Commission Malaysia has recommended or endorsed the fund. A copy of the Prospectus and PHS can be obtained from any of Hong Leong Asset Management Bhd’s offices, agents or authorised distributors and investors have the right to request for it. Investors should also consider the fees and charges involved before investing. Prices of units and distributions payable, if any, may go down or up and past performance is not a guarantee of future performance. Investors should be aware of the risks associated with each fund before investing. The Funds may not be suitable for all and if in doubt, investors should seek independent professional advice.
Refinitiv Lipper Fund Awards, ©2021 Refinitiv. All rights reserved. Used under license. These awards are awarded by an independent fund data provider, Refinitiv Lipper