Fund Fact Sheets at 30 April 2008-CIMB Principal

Islamic
CIMB Islamic Asia Pacific Equity Fund (formerly Asia Pacific Adil Fund)
CIMB Islamic Balanced Growth Fund (formerly Lifetime Dana Barakah)
CIMB Islamic Enhanced Sukuk Fund (formerly Lifetime Dana Wafiq)CIMB Islamic Equity Aggressive Fund (formerly Lifetime Dana Mubarak)
CIMB Islamic Kausar Lifecycle Fund 2017CIMB Islamic Kausar Lifecycle Fund 2022CIMB Islamic Kausar Lifecycle Fund 2027CIMB Islamic Short Term Sukuk Fund (formerly Lifetime Dana Fayyad)

How To Select Unit Trust Funds?

There are many unit trusts funds from which to choose, but having considered the type of fund or funds most likely to meet your needs, you have already narrowed down your choices considerably.

The next logical step is to decide which unit trust fund to invest in.

What To Look For ?

A random check will confirm most, if not all, investors would look at the performance or investment results.

Unfortunately, it is impossible to predict a unit trust's future investment performance. This will depend on the type of fund, the general market trends and the investments which a fund manager picks.

Most managers would provide the past performance tables that normally show the total returns since inception or how much an initial investment made several years ago would be worth today with any income reinvested.

Look at the performance of the funds but do not pay too much attention to period of a year or less - external factors beyond the control of the managers may have influenced results - a high flyer may not stand the test of time. Ideally, a fund showing consistent performance over a long period, the longer the better.

Check the performance of a company's other funds to make sure that it was not just a bit of luck with one fund. Do not let another type of fund take your fancy just because it has produced better results than the one you had initially chosen. It may be more risky and may not meet your requirements.

However, be warned, past performance figures are no guarantee of the future. A fund that has performed well in the past may not do so in the future and vice versa. Go to Fund Performance for fund comparisons.

Do's and Don'ts of Choosing a Unit Trust Fund

Do

-Decide which type of unit trust fund meets your saving needs. -Shop around for a reliable unit trust company

-Check whether investment limits, frequency of income payments, etc, are suitable -Check past performance records

Don't

-Don't choose any unit trust fund just because its performance has been good, make sure it is the right fund for you.

-Don't pay too much attention to short term performance, good consistent performance over all periods is the best lead.

-Don't decide on a unit trust fund just because it has low charges, good performance is far more important -Don't borrow to invest in unit trust unless you are absolutely aware of the risk involved.

Choosing The Best Way To Invest In A Unit Trust

Most unit trust managers offer you a choice of ways to invest.

As A Lump Sum

The minimum lump sum investment in a unit trust is typically in the range of RM500 to RM2,000. There is no limit on how much you can save and invest in a unit trust, though if you are making a very large investment, it is usually advisable to spread your holdings among different funds so that you do not have all your eggs in one basket.

If you are worried that the stock market could fall back from a peak just as you invest your lump sum, you could consider investing it gradually through a regular savings plan.

Via A Regular Savings Plan

Regular savings plan allows investors to put in a set amount monthly to the unit trust of their choice. Usually the minimum initial amount is RM1000 though it may vary with fund managers. The minimum monthly additional investments usually start from RM100. This is a convenient way of saving, as monthly additional investments are usually paid through a bank's standing instructions.

The regular savings plan is also flexible since they are not tied to a particular period of time. This can enhance the returns from unit trust that performs reasonably well over a long period. An advantage of the regular savings plan is that they even out fluctuations in unit price. The same investment each month will buy more units when the price is lower and fewer when the prices are high. The effect of ringgit cost averaging, as it is called, is to make the overall cost of units slightly cheaper. Of course, another advantage is that you can cash in the whole lot or part of it without penalty on any business day. Regular savings plan can improve returns significantly in the long run.