Unit Trust Investing

Unit Trust Investing

What’s what in unit trust language

1. What is 'Capital Appreciation'?

A form of profit from a unit trust investment, it refers to the appreciation of a particular unit trust fund's NAV per unit.

2. What is 'Income distribution'?

A form of profit as it is an income earned by a particular unit trust fund and given out to its investors. An investor may decide to reinvest the income distribution to own more units. No service charge is applied when reinvesting the income distribution, but will be subjected to terms and conditions.

3. What is 'Unit split'?

An exercise by the fund management to increase the affordability of the particular fund's Net Asset Value per unit. This will increase the units in circulation in the fund while lowering its Net Asset Value per unit.

4. What is an optimum investment period?

We encourage a period of at least 3 years, although you are allowed shorter periods.

5. What is 'Forward Pricing'?

A practice we adopt to ensure fairness in unit trust fund transactions including investing, redeeming or switching funds. Every transaction submitted will be based on the next published NAV per unit.

6. What is the 'Cooling-off Period'?

The time period when the investor has the right to cancel the initial investment, with a full refund within 6 business days. At CWA, we allow the cooling-off period for first time investors but not for our staff and consultants.

7. What are the main types of investment plans available?

Cash – Lump sum investment or Cash Plan
Cash – Regular Saving Plan (Auto Debit, Direct Debit, MEPS Direct Debit from Bank accounts)
EPF Investment Scheme

8. How do you invest using your EPF?

You must have a minimum savings balance of RM55,000 in Account 1. 20% of the excess amount can be used as long as the base RM55,000 is maintained. You may contact our Customer Care Hotline 03 77183000 and let one of our professional consultants assist you.

9. What does a regular saving plan mean?

It is an auto-deduction facility with your bank for unit trust investment. CWA partner banks that provide the facility are:

10. What would you receive as the confirmation details for your unit trust investment?

Confirmation Advice Slip is given with every investment (Quarterly statements are given with Regular Savings Plan)
Yearly Statement of Account
Unit Split Statement / Distribution Statement (if any)

11. What documents you need to provide for setting up an initial investment?

a) EPF

Account Opening Form
Transaction Form
KWSP 9N Form
Photocopy of NRIC
Photocopy of Police or Army ID - employer's letter confirming that the NRIC number refers to the same person (if applicable).
Pre-Investment Form

b) Cash

Account Opening Form
Transaction Form
Photocopy of NRIC
Photocopy of joint holder's NRIC (if applicable)
Photocopy of Birth Certificate (if joint applicant is below 21 years of age)
Payment – Cheque, banker's draft, money order or cashier's order
Pre-Investment Form

The payee's name on cheques or banker's drafts for unit trust investment is: CIMB Wealth Advisors Berhad. The investor's name must follow his or her identification document and as that written on the Transaction Form.

12. What would be the payee's name on cheques or bankers drafts for unit trust investment?

The payee's name should be written as CIMB Wealth Advisors Berhad for (or behalf of) the investor's name. The investor's name must be the same as his or identification document and as that written on the Transaction Form.

For example: CIMB Wealth Advisors Berhad for Alisha Binti Bahrun.

13. What documents are required of the beneficiaries, upon the demise of the unit trust holder?

Declaration Form
Redemption form or Transfer form
Release Letter (if this is EPF Investment scheme)
Letter of Administration certified by Commissioner of Oath or Solicitor
Death certificate certified by Commissioner of Oath or Solicitor
Photocopy of beneficiaries' NRIC certified by a Commissioner of Oath or a Solicitor