*This article has been updated as of 12 July 2024.

Amanah Saham Bumiputera (ASB) and Amanah Saham Malaysia (ASM) are unit trust funds managed by Amanah Saham Nasional Berhad (ANSB).

Established in 1979, ASNB offers 16 types of funds, each with a varying degree of risk.

For today’s purposes, we’ll focus on the ones with the lowest risk - ASB and ASM.

ASB and ASM are always fixed at RM1 per unit

This gives you the flexibility to plan your investments without worrying about market volatility or price swings.

ASB and ASM Pay Decent Dividends

The payout averaged 6.39% and 5.43% in the past decade for ASB and ASM, respectively.

Even during the height of the pandemic in 2020, both funds managed to deliver dividends above 4%.

Dividends are Exempted from Tax!

The dividends earned are not taxable and there are also no sales charge or upfront costs when you start investing, unlike other ASNB funds which charge up to 5%.

The payouts from ASB and ASM are declared yearly but the calculation is done monthly based on the lowest balance in your account.

You can withdraw up to 2,000 units (or RM2,000) from ASB or ASM every month through the myASNB app online.

For bigger amounts, you can do so anytime at an ASNB branch.

Okay, but what are the Risks?

• Returns are not guaranteed. ASB and ASM dividends fluctuate based on market conditions and interest rates.

• Not insured by PIDM. Since these are considered investments, your money is not covered by PIDM in the event ASNB goes bankrupt.

• Limited availability. ASM Funds have a non-bumi quota restriction that can make buying the funds difficult if the limit is hit.

Where does my money go in ASB?

According to ASB’s 2022 annual report,

• 79.26% of the funds were allocated into equities.

• 8.09% were in fixed income investments.

• 11.12% was distributed to other investments.

As of December 2022, 10.6 million individuals had invested in ASB.

The fund size totaled RM186.24 billion, with the majority of it coming from people who contributed between RM50,000 and RM500,000.

ASB’s largest equity holding is Maybank.

The fund owns 3.84 billion Maybank shares, or a 31.86% stake, with a valuation of RM33.61 billion.

The next largest holding is Sime Darby Plantation Berhad.

Where does my money go in ASM?

According to ASM’s 2023 annual report,

• 83.80% of the funds were allocated into equities.

• 6.19% were in fixed income investments.

• 8.04% were distributed to other investments.

As of March 2023, 575,351 individuals had invested in ASM.

The fund size totaled RM22.63 billion, with the majority of it coming from people who contributed RM50,000 and RM500,000.

ASM’s largest equity holding is also Maybank.

The fund owns 245.8 million Maybank shares, or a 2.04% stake, with a valuation of RM2.14 billion.

The next-largest holding is CIMB Group Holdings Berhad.

What about Other Funds like ASB 2 and ASM 2 Wawasan?

These funds serve the same function as ASB and ASM with roughly similar annual returns.

However, their asset allocations are slightly different.

Take ASB 2 for example; its largest holding is in Maybank, but the allocation is over two times less compared to ASB’s holding of 21.32%.

How Do I Register?

i. Download the myASNB app and enter your personal details.

ii. Take a photo of your IC and be ready to take videos/selfies for verification.

iii. Setup your username and password.

iv. Complete the one-time risk assessment and you’re set!

It took us only 10 minutes to register and get approved.

Our Verdict

ASB and ASM are great options for those who have a lower risk preference and seek exposure in the local equity market.

However, if you're aiming for greater returns, it may be more appropriate to consider other alternatives.

Disclaimer: Investing in a unit trust fund has its own risks as it is different from opening a deposit account with a financial institution. You should speak with a financial planner before making any investing decisions. ⚠️

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