CUTE Tutorial

Which of the following is the most appropriate thing to do if you meet a person who has never invested in unit trusts and does not feel comfortable to invest in unit trusts?

• Let the potential investor have a prospectus and go through with her

• Comfort her by letting her know that unit trust is an investment with no risk

• Show her the marketing brochure and take them back as you need to show the brochure to another investor

• Show her the excellent performance record of the unit trust fund and tell her that the performance will repeat in the future

Which of the below are parts of the prospectus?

(You may choose more than 1 answer)

• Investment objectives

• Authorized investments

• Fees & charges

• Trust expenses

One of the major benefits of investing in unit trusts is to gain access to the experience of a professional fund manager. Which term best describes a professional fund manager?

• Someone who has bought and sold many investment in his lifetime

• A friend who always recommends the best stocks to buy

• Someone who always manages in excess of RM500 million

• Someone who has been professionally trained in the field of fund management

The UTMC will determine (with trustee’s approval), the total amount of income of UTS to be distributed. The amount available for distribution from UTS may include only realised income/gains and after deducting expenses and taxation. Which of the following is realised income/gains?

• Dividend & interest income received

• Other income received

• Realised capital gains from the sale of investments

• All the optional answers are correct

Amongst others, the calculation of Net Asset Value (NAV) of a unit trust scheme involves:

(You may choose more than 1 answer)

• The value of the equity investments

• Costs and charges involved in various transactions of the scheme

• The value of money market instruments (if applicable)

• Accrued gross distribution and interest income after deduction of relevant fees and expenses such as annual management fees and administrative expenses

Ms. Rafidah had invested a lump sum of money into a UTS and she wishes to minimize her initial service charge exposure. As a UTC, what is the best recommendation to her?

• Recommend Ms. Rafidah to invest in growth fund that seeks for higher potential return which would cover her initial service charge.

• Advise Ms. Rafidah to invest her money as regular as possible to lower down her cost.

• Advise Ms. Rafidah to apply “buy & hold” strategy as seeking for a long term investment goal.

• Invest in Islamic fund which comply with Syariah principles

Generally, what are the possible forms of return on investment can an investor expect from investing in unit trusts?

(You may choose more than 1 answer)

• Distribution

• Capital appreciation

• Interest

What is the meaning of liquidity advantage offered by unit trust scheme?

• As liquid as cash

• Able to purchase or redeem on any business day

• Buys more unit trust on rising and less on falling market

• None of the above

Unit trust offers an effective way to pursue lifetime financial goals with advantages that would be difficult to achieve by lay persons who invest on their own. The advantages include:

(You may choose more than 1 answer)

• On-going professional fund management

• Diversification of assets with reduced risks

• Can be bought and sold easily

• More favourable transaction costs for unit trusts due

  to large investment amount

• Flexibility to switch between different type of funds

  (applicable to certain unit trusts)

Which statement regarding the EPF Members Withdrawal Investment Scheme is correct?

• The maximum age for the qualified member is 60

• Members can withdraw funds from the EPF once in every two months

• Investment can be made with any unit trust scheme

• Balance in Account 2 is not eligible for this scheme