Types of Funds

These are the type of Funds to show the proportion of return and risk. For further information regarding the Funds, click HERE.

 BIMB Funds, BIMB Invest, BIMB Investment Management Berhad, Unit Trust Consultant

Source: BIMB Investment Management Berhad

Meet Us: Islamic Innovation Carnival 2011

We will be opening up a booth at the 2011 Islamic Innovation Carnival on the following:

Date:  2nd – 5th June 2011

Time: 10.00am – 10.00pm (daily)

Venue: The National Mosque, Kuala Lumpur (Masjid Negara)

Click here for the location map.

Risk Factors

No matter how low the return, Unit Trust Funds are still associated to risks which would affect the performance of the funds to a certain degree. However, the level of risks depend on the type of Funds. The greater the potential return, the greater the risk.

Fund Managers would adopt methods such as proper asset allocation, protfolio diversification and liquidity management; to manage the risks for each of the Fund. The Fund Manager would also carry out extensive research and analysis to minimize the risks further.

Following are the risks subjected to the Unit Trust Funds:

  • Market Risk.
  • Specific Security Risk.
  • Currency Risk.
  • Credit / Default Risk.
  • Financing Risk.
  • Non-Compliance Risk.
  • Interest Rate Risk.
  • Liquidity Risk.
  • Reclassification of Shariah status Risk.

To know more about the above risks, send an email to utcbimb@gmail.com.

Organisation Chart

This is the organisation structure of BIMB Investment Management Berhad. It’s headed by Ms. Junaida Abd. Jalal as the CEO.

BIMB Invest, BIMB, BIMB Investment Management Berhad, Unit Trust Consultant 

Who Can Trade?

In reference to Shariah Compliant Securities, you might want to know who is eligible to trade in such securities. Right? Is it exclusive for the Muslims only?

Well, investing in Shariah-compliant securities is open to all and NOT limited to Muslims only. Therefore, non-Muslims can also trade on Shariah-compliant securities.

And therefore, non-Muslims can invest in the BIMB Invest Unit Trust funds.

Disclaimer:

Shariah-compliant securities is generally a classfication of securities. The performance of securities still depends on other factors. The Shariah classification does not hold major effect on the securities’ performance in the market.

 

Source: Securities Industry Development Corporation.

Shariah-compliant Securities

All the Unit Trust Funds under BIMB Invest are Shariah-compliant. What does Shariah-compliant means?

The Shariah Advisory Council of the Securities Commission Malaysia (SC) classified those securities as Shariah-compliant because the company does not perform or involved in activities contrary to the Shariah principles.

Those activities contrary to Shariah principles are:

  1. Financial services based on riba (interest);
  2. Gambling and gaming;
  3. Manufacture or sale of non-halal products or related products;
  4. Conventional insurance;
  5. Entertainment activities that are non-permissible according to Shariah;
  6. Manufacture or sale of tobacco-based products or related products;
  7. Stockbroking or share trading in Shariah non-compliant securities; and
  8. Other activities deemed non-permissible according to Shariah.   

As of 26 Nov 2010, there are a total of 961 securities listed on Bursa Malaysia and only 88% of these are Shariah-compliant securities.

BIMB Holdings, the parent company of Bank Islam, who is the parent company of BIMB Investment Management Berhad is ONE out of TWO Shariah-compliant securities under the Finance category.

Source: Securities Commission Malaysia.

What to consider?

When you wish to invest in a Unit Trust Fund and given a few choices, you should consider the following:

Investment Objective – it must be clearly stated to enable you to evaluate whether the objectives are in line with your own investment objective.

Investment Policies – the types of authorised investment and strategies should match your own convictions.

Size of fund and growth trends.

Any investment restriction, like minimum investment required.

Level of risks with its investments – unit trusts do not completely eliminate risks.

Types and amount of fees – understand them so that you will be left with no surprises.

Historical performance on total returns on an annual basis, NAV (net asset value which is essentially the worth of each unit), expense ratios, the distribution of income to investors and growth of assets – so that you can gauge how well the fund has performed over time. Howewer, remember that past performance does not guarantee future achievements.

Latest investment portfolio – so that you know the percentage of holdings in each kind of asset.

Information on Board of Directors, key management team (especially the fund manager), auditor and trustee.

Source: www.sidc.com.my

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