ASD -Amanah Saham Didik is fully subscribed but not to worry.....

Bumiputra-only product

Last week I met avid fellow investors and we were talking about investing in the low risk PNB (Permodalan Nasional Berhad)  products as a means of getting regular income at a rate higher than the bank. As everyone knows there are products which are reserved for Bumiputra and those open for non-Bumiputra.

Among those that are open to all irrespective of ethnic groups are ASN3, AS1M,ASM and ASW for which all non-Bumi portions have been fully subscribed! Hopefully additional units will be issued for these unit trusts in the near future so that more young people entering the economic realm will be able to join these long-term investment opportunities. The attractive aspect of the products is that they have different financial years where dividends are distributed. ASM and ASW will be by June and AS1M in September so you are able to get regular income throughout the year.

Among the products exclusively reserved for Bumiputra are ASN,ASN2, ASB and ASD. For a long time these products apparently according to my Bumi friends, have not been fully subscribed. So those with money to spare have been putting their money in the last two as they are fixed-rated. However last week according to my friend SJ  she could not get anymore ASD units as it has been fully subscribed. Thinking fast I told her not to worry wait till the middle to late July because some units are going to be released by some investors. The reason is simple. Many people tend to park their excess money for a few months just to get the dividend. And ASD dividend will be distributed on July 01. The dividend rate is likely to be more than 6.35 sen per unit  declared last year according to record.

It seems the way to get more income for people is to park their money just before the dividend is declared then they will transfer back the money to another fund for the next respective dividend. Have you ever thought of doing that? I think you can do that if you are sure you could get back in.  May not be easy for fully subscribed funds though.

I am seriously thinking of parking my AS1M fund in a state-owned variable -rate unit trust if I am sure that its dividend rate is going to be high ( this unit trust has higher dividend yield)  and to be distributed at the end of the year. Park it just after AS1M declares its dividend in September then try to get  back in again in February the following year. You have to be fairly active in your various transactions to do this.

Dynamic parking (reallocation/relocation)  of excess fund seems to be a logical strategy, I think this is what some people are doing to make their money work harder for better income generation.

Stretching your money !

So best of luck to people who are  adventurous!