A unit trust's holdings which may include shares, bank deposits, bond and cash.

Asset Backing

The value in assets for each issued share. Obtained by dividing the net total value of assets of the company by the number of issued shares.

Additional Investment

The amount invested subsequently on a regular basis. Also include amount invested as and when desirable by the investors.

Authorised Capital

The nominal capital of a company which is authorised by the Memorandum of Association and on which stamp duty had been paid.

Annual Report

A formal report to unitholders of the financial status of a unit trust fund. This report must be audited by independent auditors.



Bid/Buying Price

The cash-in-value or selling price of your units.

Bid & Offer Spread

The difference between the buying and selling price of your units.

Balance Sheet

A statement showing the "net worth" or a company in accounting terms. It represents the financial position of a company on a particular day.


Someone who anticipates that price will fall.


A term pessimism, and in the market it means that prices are moving generally downwards.


A document recording a loan, promising to pay the creditor of bondholder interest for a specified time and to repay the capital borrowed on maturity.


An investor who expects that price will rise.


A term of optimism, and in the market it means that prices are moving generally upwards.




The amount of money you have as savings or investment.

Capital Gain

The amount by which the value of investments owned exceeds the cost of such investments. A realised capital gain is the profit realised from sales of investment.


The continuous reinvestment of income with the effect that any asset would be based on the original investment and the reinvested income.

Cum Dividend

The period before a trust fund pays out its income.



Designated Account

A joint holder who is a minor (below 18) with a parent as the registered holder.


Income paid on units out of fund's profits.


The investment in a number of securities. This results in spreading and thereby reducing the risks inherent in investing

Dividend Equalisation

The distributable portion (non taxable) of the fund created to equalise the dividend payable on units purchased at different times.

Dividend Reinvestment

The dividends can be reinvested at the prevailing price specified in the Trust Deed.




Shares in a company.



Fixed Interest Securities

Another term for bonds.







Initial Charge

A charge- usually 5%- that is paid by unitholders to cover manager's expenses, such as advertising, administration, commission, etc.








Refers to the ease with which any investment may be converted to cash.

Lump sum

The amount by which the value of investments owned exceeds the cost of such investments. A realised capital gain is the profit realised from sales of investment.



Management Fee

The sum paid to the unit trust manager for supervising the fund's portfolio and administering its operations.

Money Market

The term refers generally to cash or "near cash" investments which pay interest.



Net Asset Value

The actual value of all the assets of a unit trust fund, less the fund's liabilities. Commonly referred as the NAV.

Net Asset Value Per Unit

It represents the base value of a unit trust fund. The net asset value per unit is the NAV of the unit trust fund divided by the number of units in circulation. It is the unit prices that appear in most newspapers.



Offer/Selling Price

The price at which you buy units.



Par Value

The par value of a unit trust find is a value at which the unit trust fund is carried on the financial statement. It is also called the face value of the unit trust fund.


All the securities which a unit trust fund or individual owns.


The official circular which describes the units of a unit trust fund and offers them for sale. It contains details concerning the unit trust fund, its manager, the method of determining the unit prices, description of plans available.





Regular Savings Plan

An efficient way to build up or accumulate a sizeable amount on a medium to long term basis. Invest at regular intervals, usually between RM50 to RM100. An investor is not locked into a fixed savings period. You may stop when you like without any penalty.


The amount by which your savings may increase due to a combination of interest or dividend income and capital growth.

Ringgit Cost Averaging

A principle of investing which entails the use of equal amounts for investments at regular intervals with the hope of reducing average cost by acquiring more units when the prices are low and fewer units in periods of high unit prices.


A measure of the probability that the value of your savings and the income from them will fall as well as rise



Stock Market Index

An index shows how a specified portfolio of share prices are moving in order to give an indication of market trends.




An institution or individual holding assets in trust.

Trust Deed

An instrument under seal creating a trust.












The amount of income generated by a fund's investments in relation to the current price.