FREQUENTLY ASKED QUESTION
I am keen to know what unit trust is. Please explain.
A unit trust is a collective form of investment that enables investors who share similar objectives to pool their money in a fund managed by the professional fund managers.
Returns on unit trust investment has always been sluggish. I have not seen any returns on my investment.
All investments carry risks and unit trust funds are no exception. However, unit trust funds allows investors to diversify and even out the risk of their investments as compared to direct investments in the stock market.
Should I wait for the right moment to invest?
Timing the market is impossible, even the fund managers do not profess the ability to pick the market’s highs and lows. It is recommended though to have investments in funds which provide considerable flexibility to fine-tune investment strategy when circumstances change. With oneInvest you have the freedom and flexibility to switch between funds, to spread your risk and take advantage of prevailing market conditions, and hence, maximising your potential returns.
Why should I invest with you?
At Libra Invest, we adopt a personalized approach in providing timely services to you as our valued investor. We are investor driven, offering various types of funds with accommodating investment strategies which best meet your investment goals and risk profile. We also provide you with regular investment updates to ensure that you are financially aware of the changing trends in financial markets and the impact on your investments, and hence making necessary investment adjustment.
What if I change my mind?
If you are a first time individual investor, a cooling-off period of six (6) business days from the date of application for units is provided for your initial investment. You may withdraw your investment at any time during this period, and you will receive a full refund. Your net investment amount plus the entry fee/service charges (where applicable) will be refunded within 10 days from the date we received your notification to exercise this right. This right is not applicable for your subsequent investments.
Who can invest?
Local and foreign individuals investing in single or joint names (joint holders). Persons under the age of 18, provided investments are held by an adult.
Corporate entities, trust, co-operatives, foundations.
Is there any entry fee charges?
Yes. The entry fee payable varies and is equivalent to the specified percentage of the NAV per unit of the respective funds, ranging from 0% to 5.0%. (Please refer to the ‘Investment Solutions’ page for respective funds charges.)
Can I make an investment through any of your appointed agents or bankers?
Yes. You may make your investments through our full-time salaried employees, third party distributors (IUTA) or agency force.
How can I make an investment?
Investments can be made at a service centre or at the Management Company’s office after completing an application form, attaching with either a copy of the applicant’s identity card, passport or other identification.
Where can I obtain an application form?
- The Management Company’s office in Kuala Lumpur
- Service Centre in Johor Bahru
- Download from the Management company's website at www.librainvest.com
How do I pay for an investment?
- By way of a standing instruction, subject to the rules and regulations of the banks.
- By a crossed cheque, banker’s draft, money order or cashier’s order made payable to Libra Invest Berhad.
- By depositing into any Management Company’s bank accounts below :
||514057 - 646827|
When will I receive the confirmation of my investment?
Within 14 days from the date of payment received by the Management Company, failing which notification should be made immediately.
Can I withdraw my investment immediately?
Yes. However, the minimum liquidation size and minimum balance to be maintained in each fund differ for partial liquidation/withdrawal.
How do I liquidate my investment?
- For all Funds (except MoneyEXTRA Fund), Units may be liquidated on any Business Day by completing a liquidation form. In the case of MoneyEXTRA Fund, liquidation notice must be given to the Management Company one (1) Business Day prior to the liquidation (i.e. T-1 day).
- For a transaction to take effect on the same day, the liquidation form must reach the Management Company on or before 3.30 p.m.
When will I be receiving my payment upon liquidation?
- For all Funds (except MoneyEXTRA Fund, LLF and LSLF Series 2), the liquidation of Units will be priced at NAV per Unit calculated at the next valuation point and payment will be made within ten (10) calendar days upon receipt of the duly completed original liquidation form by the Management Company.
- In the case of MoneyEXTRA, LLF and LSLF Series 2, the Management Company will use best efforts to make payment on the next Business Day (T+1 day).
Investment through IUTA.
Please refer to your respective IUTA for details on transactions for LIB's funds.
What is the impact of income distributions or unit split on my value of investment?
It is important to note that income distributions and unit splits exercises do not affect the value of investments i.e. the investment value remains unchanged, subject to a small rounding adjustment. Below is an illustration of your investments before and after the unit split exercise and reinvestment of distribution made for the Libra EquityEXTRA Fund.
|Distribution & Unit Split as at 29 Oct 2010 – Libra EquityEXTRA Fund|
|Declared Distribution||5.86 sen per unit|
|NAV before distribution/split (as at 28 Oct 10)||RM0.5664 per unit|
|Market movement of NAV on 29 Oct 10||+ RM0.0022 per unit|
|NAV after distribution/split (as at 29 Oct 10)||RM0.5100 per unit|
- Assume that your holding in the EquityEXTRA Fund before the exercises is 1,000,000 units. As the NAV per unit before the exercises is RM0.5686 (RM0.5664 + RM0.0022) the value of your investment before distribution and split is RM568,600.00 (1,000,000 units x RM0.5686).
- On 29 October 2010, based on your initial unitholding of 1,000,000 units you will receive RM58,600.00 (1,000,00 units x 5.86 sen) of income distribution which will be reinvested at RM0.5100 on 29 October 2010 itself, thus increasing your unitholding by 114,901.96 units (RM58,600 ÷ RM0.5100).
- Therefore, your unitholding after the split and reinvestment of distribution would have increased to 1,114,901.96 units (1,000,000 units + 114,901.96 units) which is equivalent to RM568,600.00 (1,114,901.96 units x RM0.5100).
Do you provide investors with any updates on their investment?
Yes. The Management Company will keep you updated on your investment positions/holding by providing OneINVEST monthly statements, details of income distributions, annual statement/report, unaudited half yearly interim report and audited annual report.
Terms and Conditions
- Applications received by the Management Company before 3.30 p.m. on any Business Day will have the units issued at the Fund’s NAV per unit calculated at the end of that particular business day (forward pricing).
- The Management Company reserves the right to accept or reject any application for units if the information received is incomplete, or if not accompanied by required documents, or is not signed by authorized investors, or where there are any other reasonable grounds to so reject.
- Unsuccessful applicants will be notified and are entitled to a full refund.
- All applications / transactions are subject to availability of units.