148 Opening online unit trust account (unit trust with servicing agent)

148 Opening online unit trust account (unit trust with servicing agent)

Introduction

Phillip Mutual has once again stand one step ahead—opening of FAME unit trust investment account (with servicing agent) online. That said, Phillip Mutual has two type of unit trust investment accounts that can be open online.

• Wrap / Non-Wrap unit trust account is our normal unit trust investment account where we agent used to meet client to sign them up by filling forms. Wrap / Non-Wrap account is suitable for clients that need agent's advice on fund selection or switching etc.
• Non-WRAP Account: Higher upfront Service Charge, higher inter-fundhouse switching fee, nil quarterly WRAP fee.
• WRAP Account: Lower upfront Service Charge, nil / minimal inter-fundhouse switching fee, quarterly WRAP fee applies.
• eUnitTrust account is a cost-saving investment account (refer to 147 eUnitTrust — Cost-efficient and convenient way to online unit trust / PRS investing)

Because of Movement Control Order (MCO), social distancing has become a new norm. At least for a short while, investors may not want to go to crowded place to meet an agent to sign up a new unit trust investment account. How wonderful if this step can be done online and future correspondence can be done through phone calls or emails with agent.

147 eUnitTrust — Cost-efficient and convenient way to online unit trust / PRS investing

eUnitTrust — Cost-efficient and convenient way to online unit trust / PRS investing

I have been investing in unit trust (as well as shares) for more than 15 years. In those days, we have to look for an agent to open an account. And every subsequent transactions (redemption, switching etc), we have to meet the agent or go to branch to do it. This means we have to sacrifice our annual leave or weekends to meet the agent to request the transactions.

As time goes by, online investing comes into picture. Unit trust companies is a bit slow to go online. Investment banks (i.e. shares transactions) is quite fast to implement online transactions. That said, I remember the brokerage fee was still quite high (0.47% if not wrong) in the beginning. Then it continue to fall to quite low level today (as low as 0.10% or RM8 per transaction). I used to call my remisier when I want to buy/sell shares, then I try online platform, now I don't use a remisier at all. I still remember my remisier advised me not to use online trading to avoid any wrong transactions.

I kept on wondering when will unit trust investing go online, hoping the service charge will become lower. The norm then (even now) was 5%-6%. At 5%-6% service charge, it means our investment will start make money after the unit trust fund price has appreciate by 5%-6%.

When I knew of Phillip Mutual's eUnitTrust platform, it immediately changed how I invest. Even now in MCO (Movement Conrol Order) period, I have no problem monitoring or perform necessary transactions.

What is eUnittrust?

eUnittrust.com.my (eUT) is the online unit trust distribution platform of Phillip Mutual Berhad (PMB). eUnitTrust is very suitable to investors who are (1) very open to online transaction, (2) do not need agent's service / advice. Besides that, I enjoy some more other benefits.

146 Investing in Funding Societies through PhillipCapital

146 Investing in Funding Societies through PhillipCapital

PhillipCapital has recently signed up with Funding Societies to carry its peer-to-peer financing products. This tie-up offers some exciting and interesting products.

When I shared the tie-up with investors, some of them are already existing investors with Funding Societies. So they see no difference going through PhillipCapital.

Direct investors in Funding Societies has two products to choose - Working Capital Financing and Invoice Financing. Working Capital Financing is for borrower to expand their business. Invoice Financing is for borrower to have liquidity while waiting for their buyer to pay. Direct investors can select the which type of financing to go for, rating quality of company and time frame of lending.

Working Capital Financing is consider higher risk because we cannot know what will turn out in a business expansion. Invoice financing is consider lower risk because the buyer has obligation to pay within a specific credit term.

I have shared I have two default investment in P2P financing. They are in the legal process to recover the money. So although the default rate is low, there is still default. This reminds me of an old Singapore advertisement that says "Low crime doesn't mean no crime."

What are the benefits investing through PhillipCapital?

145 REITs funds for stability and income

REITs funds for stability and income

In the just concluded 10th PhillipCapital Annual Conference, many fund houses presented their views on the market outlook and potential investment ideas. Almost all fund houses agree that market will remain volatile for the rest of the year. Investors looking for more stability and income may diversify some money into REITs funds. (Two of fund houses that present this view don't even have REITs fund themselves.)

Even before the conference, while we were travelling from JB to KL, few of us planners and agents were talking about how stable REITs funds has been performing for the past few months. The market has been volatile but REITs funds are steadily and slowly going up. One of agents has both REIT fund and REIT stock, interestingly he is not confidence the REIT stock management will perform in such economic condition but he was very excited with his REIT fund selection.

Below is the chart for REITs funds taken from FundSuperMart.

144 Birth Certificate is Important in An Intestate Estate Claim

Birth Certificate is Important in An Intestate Estate Claim

Previously, I shared about claiming estate for a person who does not leave behind a Will through Amanahraya.

In such a claim, the spouse, the parents and the children become the valid parties to inherit the estate. Therefore, the relationship must be established / proofed. The needed documents for this will be:-

• IC of all beneficiaries
• Marriage Certificate - to prove legal husband / wife
• Birth Certificte of deceased - to prove legal parents
• Birth Certificate of children - to prove legal children
• Death Certificate - in case where any parties is had pass away, death certificate is needed

For older peoples, especially those born before / right after independence, they may not pay high attention to Birth Certificate. They were more concerned with Sijil Kerakyatan, and blue IC. To be able to stay in Malaya with all the legal rights was the main concern. So they may not have / care to keep their Birth Certificate.