ASB Calculator

ASB Overview

The Bumi-specific, restricted unit trust fund named Amanah Saham Bumiputera (translated as ‘Bumi Trust Savings’) came into being via Permodalan Nasional Berhad (translated as ‘National Trust Corporation’) – an investment fund initiated by the government’s Unit Trust Corporation. Amanah Saham Bumiputera was promoted by the government as a safe and stable outlet for investment through which Bumiputeras ‘would grow in wealth through the medium of low-risk, long-term investment’.

Regulatory Framework

ASB works according to a clear regulatory regime that ensures a stable, secure fund. The major regulatory institutions overseeing ASB are:

• Securities Commission Malaysia (SC): Oversees the fund's compliance with capital market regulations.
• Bank Negara Malaysia (BNM): oversees the financial institutions engaged in the ASB activity, notably in respect of loans and dividends.
• Permodalan Nasional Berhad (PNB): PNB is the fund manager who will manage ASB’s assets according to the policies of the government and law.

ASB Investment Guidelines

Through these guidelines, PNB has made it clear to ASB that investment is to yield a steady return while keeping Specifically:

• Investment in a diversified portfolio of equities, fixed income securities, and money market instruments.
• Emphasis on blue-chip stocks with strong fundamentals.
• Maintaining a significant portion of assets in government bonds and other high-grade securities.

Key Features of ASB

In summary, ASB presents investors with a variety of advantages. These include:

• Capital Preservation: ASB aims to provide returns consistently while taking the least possible risk, making it a low-risk version of investing.
• Tax-Free Dividends: Dividends of ASB are considered outside the taxation of the Malaysian government, further augmenting the returns to the investors.
• Competitive Returns: Over the years, ASB’s returns have proved competitive compared with savings accounts and fixed deposits.
• Liquidity: units can be redeemed at any moment, providing access to funds as needed. Creative destruction: by redeeming your units on different, potentially more exciting or productive investments, serendipity can assist you in creating new opportunities.

Eligibility and Application Process

ASB is only open to Malaysian citizens who identify as Bumiputera. ASB units can be applied for through several routes, including:

• PNB branches and agents.
• Participating banks offering ASB financing options.
• Online platforms provided by PNB.

ASB Financing Options

To increase the accessibility of ASB investment, some monetary institutions grant ASB financing. ASB financing will provide leverage to the ASB investment, enabling investors to borrow investment money from these monetary institutions for the purchase of ASB units. The factors to consider for ASB financing are as follows.

• Interest Rates: ASB financing often have a significant competitive advantage over other financing agencies in terms of interest rates.
• Loan Tenure: Financing options generally range from 5 to 20 years, providing flexibility in repayment.
• Full Dividend Payout: Investors receive only part of the dividend payout, with the rest being used to repay the loan or buy more ASBs.

Using the ASB Calculator

The ASB Calculator is a very useful tool for would-be investors as well as the investors, which allows them to calculate the anticipated value of their investments as per the given input values through the formula. It computes based upon the input values for the step by step calculation of the final result as requestede.Following parameters are used for this calculation:

• Initial Investment: The starting amount invested in ASB units.
• Monthly Investment: Additional contributions made each month to increase the investment's growth potential.
• Investment Period: The total duration (in years) of the investment.
• Expected Annual Interest Rate: The anticipated annual return rate, based on historical performance or individual expectations.

Upon inputting these values, the calculator provides an estimated future value of investment, thus empowering the investors with prior knowledge of future target values, enabling them to make logical decisions with respect to financial goals. The primary benefits of this calculator are in response to the following queries:

• Informed Decision-Making: Helps you plan how to use ASB and potentially minimise future investment loading by providing reasonable estimates of its expected growth.
• Customization: the input values can be tweaked to test other scenarios and maximise the investment strategy.
• Simplicity: The calculator is user-friendly and requires no advanced financial knowledge to operate.

Conclusion

ASB is an important avenue for wealth accumulation of the Bumiputera in Malaysia. With explicit government support, attractive returns and cheap commercial financing, ASB continues to be a very popular investment product that ensures a safe and stable financial return. With the ASB Calculator, investors will be able to visualise return potential before investing and make informed decisions for their financial well-being.

Table of Key ASB Features