Q2 Describe the features and benefits of THREE (3) products offered by mutual fund of unit

trust companies in Malaysia

Hong Leong Assets Management is one of the company which offer mutual fund in
Malaysia. The first product is Hong Leong Regular Income fund (HLIRF). Hong Leong
Regular Income Fund was launched on 10th August 2016. The feature of this fund is fixed
income and the type of fund is growth and income. And through investing in diversified
portfolio of fixed income instruments, equities and equity-related securities to achieve capital
growth, also through the equities and equity-related exposures in Asia Pacific, including
Malaysia, but except for Japan to finding diversification in their investment holdings. The
percentage of asset allocation is this fund, for fixed income instruments will be allocated a
minimum of 70% to 100%, and equities and equity-related securities will be zero to thirty
percent. The benefits of the fund is provides an opportunity for the investors can have regular
income in the medium-to-long term. Also it is low capital to start initial investment the
minimum initial investment is RM1000. Although subject to interest rate risk and credit risk,
larger returns than bank deposits can accumulate in a short period of time. (Hong Leong
Asset Management, 2022).

The second product of the fund name is the Hong Leong Money Market Fund (HLMMF)
offered by Hong Leong Asset Management and it was launched on 13th October 2014. The
features of this fund is the category of this fund is money market and the type of fund is
income. It is aimed at the investors investing primarily into deposits and money market
instruments to have regular income while maintaining capital stability. They allocate a
minimum of 90% to deposits or money market instruments that will mature in 365 days, and
a maximum of 10% will be allocated to deposits and instruments of the money market with a
maturity of more than 365 days but not longer than 732 days (Hong Leong Asset
Management, 2022). The benefits of this fund is stability because it is the type of mutual fund
is the one of more stable type to invest. Also the funds are managed with very high liquidity
to provide investors with same-day or next-day liquidity. This fund can have lower capital to
starting invest, the minimum of initial investment is RM1000.
The third product of the fund is Hong Leong Strategic Fund (HLSTF), and it was launched on
8th March 2005. The features of the fund is it as a mixed assets fund also the fund type is
growth and income. The fund is according to changes in fundamentals of the economy and
monetary policies to be able to reweight its asset classes strategically. It distributes 0 to 98
percent of assets in equities and allocates the assets to fixed income securities up to a
minimum of 2% to 100%. The benefits for this fund is that have a stable and consistent
return. And it is an investment that strives for stability to provide to the investors and the
return and consistency of performance and revenue. And that may offer higher returns than
the average 12-month deposit rate (Hong Leong Asset Management, 2022)

References
Hong Leong Asset Management. (2022). Retrieved from Hlam.com.my:
https://www.hlam.com.my/Funds/money-market-fund

Hong Leong Asset Management. (2022). Retrieved from Hlam.com.my:

https://www.hlam.com.my/funds/strategic-fund

Hong Leong Asset Management. (2022). Retrieved from Hlam.com.my:

https://www.hlam.com.my/funds/regular-income-fund