FAQ

Answers to frequently asked questions about investing in unit trust.

General Information

1. What is a unit trust?

A unit trust is a collective investment fund that pools money from a group of investors with similar objectives. It is managed by professional managers who invest this money in a diversified portfolio of equities, fixed income securities and other investments.

2. Which Fund should I invest in?

It is important to assess the 3 basic principles of investing before choosing a fund:

• Investment objective - i.e. the purpose of investment whether you wish to achieve capital appreciation, high dividend yields or a consistent income yield over a period of time.
• Risk appetite - i.e. Investor’s profile, net worth or financial situation - Retirement’s savings, hard earned money or excess cash.
• Time horizon - i.e. Point of investment close to retirement, height of career & term of investment.

3. What are fees/charges involved in purchasing a unit trust?

Upfront sales charge, annual management fee, trustee fee. Charges for the various funds may vary, kindly refer to the respective prospectus for more details.

4. How do I go about in purchasing HwangDBS’s funds?

Simply fill in the “Investment Form” and submit with the payment made via cash or cheque at our office or any of our authorised agent/distributor/IUTA. If you are a first time investor with us, please also fill up the “Account Opening Form”. A confirmation receipt will be sent to you stating the price and amount of units held after your investment application has been processed.

5. How can I redeem the funds I bought?

Fill in Form A (which we can fax or can be downloaded from our website), sections 4 and 8 and to fax the form back to us, although the transaction will only go through after the original copy of the fund is submitted, either by hand or through courier / mail.

6. How soon can I receive my money after redemption?

You will receive your proceeds within 10 days from submission of your redemption request to the Manager, except for HwangDBS Select Cash Fund which will be within 2 business days after application is received by the Manager at / before 10.30am.

7. Am I allowed to switch from one fund to another?

Switching is free. Two free switches are allowed per calendar year. For any subsequent switch within the same calendar year, a fee of 1% would be imposed on the amount switched.

8. Can I transfer my unit trusts to another person? How?

To transfer, Form B is used. A fee of RM5.00 will be charged for each transfer, regardless of the amount. Fill in Form B (which we can fax or can be downloaded from our website), sections 6 and 8 and to fax the form back to us, although the transaction will only go through after the original copy of the fund is submitted, either by hand or through courier / mail.

9. What is a cooling-off period?

A cooling-off period refers to the period where qualified Unit Holders are allowed to obtain a full refund of his investment without incurring any charges i.e. within 6 business days from the day the initial application for units is received by the Manager.

10. Initial Offer Period (IOP) - IOP is the Initial offer period of a new Unit Trust Fund generally last for 21 days from the Fund’s prospectus date, where the funds that are bought can be redeemed without paying exit fees.

11. Buying/ Repurchase Price - Price at which the Manager buys back units from Unit Holders.

12. Selling Price - Price at which the Manager sells the Units to the Unit Holders.

13. Net Asset Value (NAV) - Net Asset Value of the Fund is determined by deducting the value of all the Fund’s liability from the value of all the Fund’s assets, at the valuation point.

14. NAV per unit - NAV of the Fund divided by the total number of units issue.

15. What do you mean by forward pricing?

Forward pricing is when a unitholder wishes to purchase or redeem, and sends in a form today after 3.00pm, prices will be based the NAV of the following day.

16. Where can I check the funds’ daily pricing?

All prices are published daily (Monday - Friday) on newspapers and HwangDBS IM’s website.

Regular Investments

1. How do I start a regular investment account? What forms are required?

Regular investments can be made through regular purchases or standing instruction (auto debit) at our nominated banks.

2. Can I invest on a regular basis through deductions of my salary? How?

Yes, they can be deducted through standing instructions through the bank.

EPF Investment

1. Can I invest via EPF funds? How?

Yes. EPF account holders may invest from their account I. They are permitted to invest 20%, providing that the balance after deducting 20% is RM55k. No investing in feeder funds.

2. If I buy using my EPF funds, what will happen to my money when I redeem?

The gains or losses will be replaced into account I. 

3. Can I invest on a regular basis with my EPF funds? How often?

Yes. Every 3 months. 

4. How much can I invest each time?

They are permitted to invest 20%, providing that the balance in their account I after deducting 20% is RM55k.