Amanah Saham Bumiputera (ASB) is an investment product offered by Permodalan Nasional Berhad (PNB), a company owned by the Malaysian government. ASB was introduced in 1990 as an initiative to increase economic ownership among bumiputera (indigenous Malaysians) and provide them with the opportunity to invest in the Malaysian stock market.
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Five Benefits of Amanah Saham Bumiputra (ASB)
1. The importance of profit
The importance of profit in investment is very important because it can provide opportunities for investors to achieve their financial goals such as saving for educational needs, buying a house or supporting their retirement needs.
ASB offers better profit potential than traditional investments such as fixed deposits and savings accounts because it involves investing in the stock market with higher risk, but with greater returns in the long term.
For example, ASB achieved an average annual return of around 7.3% since it was established in 1990 to 2020, while the average annual return for fixed savings deposits is only around 4.2%. This means that ASB investors can expect better profits in the long run
2. Easy investment
Through simple investment in ASB, individuals with low income or who are new to the investment world can start their investment easily and grow as their income grows. This helps to provide greater access to various segments of society to invest in the stock market and obtain better potential returns than traditional investments.
In addition, investors in ASB can also manage their investments easily through the website or mobile application provided. This makes it easy for investors to check their investment status, make additional investments, or withdraw their investments easily. Overall, ASB offers a simple and user-friendly opportunity for individuals to start their investments, with low capital requirements and easy investment management.
3. Withdrawal accessibility
Withdrawal accessibility refers to the ease with which investors can withdraw their investment at any time without significant limitations or penalties. In the context of Amanah Saham Bumiputera (ASB) in Malaysia, investors can withdraw their investment at any time without limit and at low cost.
This allows investors to have flexibility in managing their investments. For example, if someone needs cash in an emergency, they can withdraw their investment in ASB to meet that need without waiting for a long investment period.
4. Investment diversification
Investment diversification refers to an investment strategy that aims to reduce risk by investing in a variety of different asset types. In the context of Amanah Saham Bumiputera (ASB) in Malaysia, investment diversification is achieved by investing in various different companies in various industry sectors.
ASB is a trust company owned by PNB (Permodalan Nasional Berhad) and manages public investment funds by buying shares of selected companies. ASB takes a very professional approach in choosing the right stocks to make into a portfolio, by using fundamental and technical analysis methods to evaluate the company’s performance and future growth potential.
Investment diversification is an important strategy in managing risk and increasing the chances of success in long-term investments. By providing a wide diversification opportunity, ASB enables investors to invest with more confidence and gives them the opportunity to get optimal returns from their investments.
5. Annual dividend allocation
One of the benefits of investing in ASB is that investors have the opportunity to receive annual dividend payments. These dividends are given to unit holders in cash and are usually announced at the end of each ASB financial year.
ASB investors can choose to use the dividends earned to make additional investments in ASB or withdraw them as additional income. If investors choose to make additional investments with the dividend, this can help increase the value of their portfolio by opening up opportunities for them to acquire more ASB units. This means that investors will have more opportunities to earn higher returns in the long run.
Overall, ASB’s annual dividend allocation benefits investors as they have the opportunity to earn additional income. The decision to make additional investments or withdraw them as additional income depends on the individual financial needs of the investor and this decision should be made carefully
In conclusion, ASB is a popular investment option and has many advantages for investors looking for an easily accessible and stable investment opportunity. ASB also offers broad portfolio diversification and annual dividend payments, which provide investors with the opportunity to earn additional income and reduce investment risk.