The basics of ASB financing
An alternative method to invest in ASB other than cash investment. This financing facility is offered by ASNB’s agent banks to investors who fulfill the criteria set by the banks.
An investment instrument that is subject to financing rates and related charges.
This financing facility is offered by ASNB’s agent banks to investors who fulfill the criteria set by the banks.
Financing with attached protection/takaful in the event of death and disability.
Does not require upfront payment or any types of collaterals.
An investment instrumen that could potentially help you achieve long-term financial objectives with forced-savings.
Did you know?
There are risks associated with loan financing.
Please read and understand the loan financing risk disclosure prior to investing via loan financing. Please refer to loan risk disclosure statement
Where unit trust loan financing is available, investors are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units. The disclosure statement will be provided by bank for ASB financing application.
Tips for investment via ASB financing
Affordability is the key
Align your investment goal and affordability. Budget the instalment amount to be within the capacity of your monthly commitment. Do not depend on yearly dividend.
Self discipline while investing
Discipline yourself to pay the monthly instalment from your own cash flow and not from the annual dividend like how you pay for car/house loan repayment.
Retain your dividend
Let your investment and dividend grow over the long term by retaining your yearly dividend. The more the amount of dividend you retain (compounded), the bigger benefits you will gain as compared to use it for monthly instalment.
Your future financial commitment
As ASB financing requires long term commitments, take into account your future financial commitment like buying a car/house or expanding your family expenses before deciding on ASB financing.
Adopt “let it grow” strategy
“Let it grow” strategy can be done by performing monthly auto-debit for payment of instalment. Once it matured, you can enjoy the fruits of your investment.
Subscribe insurance/takaful
Takaful coverage that is usually offered with financing can provide peace of mind against any risks of death and disability.
Did you know?
The appropriate term for ‘dividend’ in unit trust is income distribution.
Generally, return from unit trust come from dividend (income distribution) and appreciation from Net Asset Value (NAV).
For fixed price unit trust like ASB, return is in the form of income distribution.
Determine the financing amount based on your income and ability to pay the monthly instalment. We provide some guidance for you.
Table 1: Estimated monthly instalment based on financing amount.
| Monthly salary | Monthly Instalment* Within Your Capacity | Total Financing |
|---|---|---|
| Less than RM2,500 | RM178 | RM30,000 |
| RM2,500 – RM4,000 | RM297 RM415 | RM50,000 RM70,000 |
| RM4,000 – RM10,000 | RM593 RM1,186 | RM100,000 RM200,000 |
*Based on financing rate of 3.75% and financing tenure of 20 years
Did you know?
Each individual has a different monthly budget and commitment.
Wise investors will set aside a portion of their monthly income to be invested/saved first before spending!
See how they allocate their monthly salary for savings and investments
#As illustration and recommendation for monthly budget allocation. | *Total salary has taken into account the compulsory deductions such as EPF and monthly tax deduction (PCB). | ** Total financing, rate and tenure are based on Table 1
Did you know?
In addition to investing through ASB financing, you would also to consider having investment mix such as systematic deduction via Auto Labur at myASNB portal and invest in other ASNB unit trust funds to achieve your financial objectives.
Get the correct information with the factual explanation from official and reliable sources
Beware of misinformation & mis-selling
Be mindful of any third parties providing information that is “too good to be true” or biased views towards ASB financing.
Example of misleading statements:
“Pay for first year only, use the yearly dividend to pay for the next year”;
“You’ve got nothing to lose with ASB financing”,
Penipuan/SCAM.
Berhati-hati dengan pihak yang menggunakan pembiayaan ASB dalam aktiviti penipuan (SCAM).
Sentiasa rujuk maklumat di laman web rasmi ASNB atau ejen-ejen yang menawarkan fasiliti pembiayaan ASB.
Desakan Melabur Melebihi Kemampuan.
Jauhi pihak yang mendesak anda supaya mengambil jumlah pembiayaan yang lebih tinggi berbanding kemampuan anda.
Hubungi Kami
For enquiries and advisory on ASB financing, kindly contact ASB Financing Helpdesk at ASNB Customer Service Centre 03-7730 8899 or email to asbf@pnb.com.my
Beware of the risks associated with ASB financing and their implications.
| Risk | Implication | How to handle |
|---|---|---|
| Dividend rate is not fixed. | Dividend rate depends on the fund performance and economic situation. Any past performance displayed does not guarantee future performance. | Review your target investment amount and tenure from time to time |
| Fluctuation in financing rates | ASB financing is exposed to the risk of financing rate. The financing rate increase will make your monthly instalment higher. Check your current financing rate when there is changes in the OPR (over-night policy rate). | Check your current financing rate when there is changes in the OPR (over-night policy rate). Always be prepared with excess cash flow to cover any increase in financing rate. |
| Spread between dividend rate and financing rate | Know the difference (spread) between dividend rate and financing rate that may potentially have a negative impact on your investment. | Restructure investment strategy through advisory service at ASNB/agents if it gives negative impact on your cash flow and monthly commitment. |
| Poor planning and over-extending capability | You may not achieve expected investment objectives if dividends are used to pay monthly instalments (dividend-rolling) or for other purposes. The way you manage your ASB financing may impact the achievement of your investment objectives. | Avoid practicing dividend-rolling. Re-evaluate your capability.Grow your investment through the power of compounding on investment capital and dividends. |
| Varying surrender value by bank | The amount of surrender value obtained when you terminate ASB financing before maturity date may only be minimal or none at all as it depends on financing terms such as rate and financing maturity. | Do not take ASB financing for short term and expect the amount of surrender value to achieve investment objectives because, at the beginning of the financing tenure, a large portion of the instalment is to finance the borrowing cost. |
Please refer the latest Master Prospectus and Product Highlight Sheet for more details on ASB features which can be obtained at www.asnb.com.my, ASNB branches and agents.
Where unit trust loan financing is available, investors are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units. The disclosure statement will be provided by bank for ASB financing application.
Benefits of the power of compounding to your investment
What is the power of compounding?
Return on investment capital that has grown as a result of annual returns. The benefit is more impactful when the initial investment capital is large, be it in cash or ASB financing.
ASB Financing provides the advantages of lump sum investment
An opportunity to benefit from the compounding effect through lump sum investment and retained dividends compared with small amounts of monthly investments.
Table 2: Lump sum investment vs monthly investment
| Lump Sum investment with ASB Financing | Lump Sum investment using own money | Monthly investment without initial capital (eg Auto labur) | |
|---|---|---|---|
| Initial investment | RM50,000 | RM50,000 | 0 |
| Monthly instalment/investment | RM297 | Nil | RM300 |
| Financing tenure/Investment period | 20 years | ||
| Dividend rate (assumption)* | 5.0% | ||
Total loan instalment/total investment Financial amount Interest amount | RM71,280 RM50,000 RM21,280 | Not applicable | RM72,000 |
| Total accumulated investment at the end of 20th year | RM132,665 | RM132,665 | RM122,261 |
| Total investment return | RM61,385 | RM82,665 | RM50,261 |
Did you know?
Monthly investment can be done via Auto Labur at portal myASNB portal or Skim Potongan Gaji (Government or private companies registered with ASNB)
Accelerate your investment through high initial capital.
Difference between ASB financing and monthly investment
Monthly Investment
| Year | Accumulated Dividend (RM) | Total Accumulated Dividend (RM) |
|---|---|---|
| 1 | 98 | 3,698 |
| 2 | 380 | 7,580 |
| 3 | 856 | 11,656 |
| 4 | 1,537 | 15,937 |
| 5 | 2,431 | 20,431 |
| 6 | 3,550 | 25,150 |
| 7 | 4,905 | 30,105 |
| 8 | 6,508 | 35,308 |
| 9 | 8,371 | 40,771 |
| 10 | 10,507 | 46,507 |
| 11 | 12,930 | 52,530 |
| 12 | 15,654 | 58,854 |
| 13 | 18,694 | 65,494 |
| 14 | 22,066 | 72,466 |
| 15 | 25,787 | 79,787 |
| 16 | 29,874 | 87,474 |
| 17 | 34,345 | 95,545 |
| 18 | 39,219 | 104,019 |
| 19 | 44,518 | 112,918 |
| 20 | 50,261 | 122,261 |
ASB Financing
| Year | Accumulated Dividend (RM) | Total Accumulated Dividend (RM) |
|---|---|---|
| 1 | 2,500 | 52,500 |
| 2 | 2,625 | 55,125 |
| 3 | 2,756 | 57,881 |
| 4 | 2,894 | 60,775 |
| 5 | 3,039 | 63,814 |
| 6 | 3,191 | 67,005 |
| 7 | 3,350 | 70,355 |
| 8 | 3,518 | 73,873 |
| 9 | 3,694 | 77,566 |
| 10 | 3,878 | 81,445 |
| 11 | 4,072 | 85,517 |
| 12 | 4,276 | 89,793 |
| 13 | 4,490 | 94,282 |
| 14 | 4,714 | 98,997 |
| 15 | 4,950 | 103,946 |
| 16 | 5,197 | 109,144 |
| 17 | 5,457 | 114,601 |
| 18 | 5,730 | 120,331 |
| 19 | 6,017 | 126,348 |
| 20 | 6,317 | 132,665 |
Power of compounding maximize your ASB financing
By retaining the initial investment and yearly dividend, it will generate a higher accumulated investment amount at the beginning the year and generate more dividend.
Total financing
RM50,000
Tenure
20 tahun
Financing rate*
3.75%
Monthly instalment
RM297
Dividend rate#
5.0%
*Financing rate (profit rate) chargeable by bank and differs from time to time
#based on ASB income distribution for financial year 2021
The difference between dividend retained and dividend withdrawn
Dividend Retained
| Year | Yearly DIvidend (RM) | Total Accumulated Investment (RM) |
|---|---|---|
| 1 | 2,500 | 52,500 |
| 2 | 2,625 | 55,125 |
| 3 | 2,756 | 57,881 |
| 4 | 2,894 | 60,775 |
| 5 | 3,039 | 63,814 |
| 6 | 3,191 | 67,005 |
| 7 | 3,350 | 70,355 |
| 8 | 3,518 | 73,873 |
| 9 | 3,694 | 77,566 |
| 10 | 3,878 | 81,445 |
| 11 | 4,072 | 85,517 |
| 12 | 4,276 | 89,793 |
| 13 | 4,490 | 94,282 |
| 14 | 4,714 | 98,997 |
| 15 | 4,950 | 103,946 |
| 16 | 5,197 | 109,144 |
| 17 | 5,457 | 114,601 |
| 18 | 5,730 | 120,331 |
| 19 | 6,017 | 126,348 |
| 20 | 6,317 | 132,665 |
Dividend Withdrawn
| Year | Yearly DIvidend (RM) | Total Accumulated Investment (RM) |
|---|---|---|
| 1 | 2,500 | 50,000 |
| 2 | 2,500 | 50,000 |
| 3 | 2,500 | 50,000 |
| 4 | 2,500 | 50,000 |
| 5 | 2,500 | 50,000 |
| 6 | 2,500 | 50,000 |
| 7 | 2,500 | 50,000 |
| 8 | 2,500 | 50,000 |
| 9 | 2,500 | 50,000 |
| 10 | 2,500 | 50,000 |
| 11 | 2,500 | 50,000 |
| 12 | 2,500 | 50,000 |
| 13 | 2,500 | 50,000 |
| 14 | 2,500 | 50,000 |
| 15 | 2,500 | 50,000 |
| 16 | 2,500 | 50,000 |
| 17 | 2,500 | 50,000 |
| 18 | 2,500 | 50,000 |
| 19 | 2,500 | 50,000 |
| 20 | 2,500 | 50,000 |
Smart investors would choose to retain their dividend to take advantage of the power of compounding.
Total ASB financing
RM50,000
Tenure
20 tahun
Financing rate*
3.75%
Monthly isntalment
RM297
Dividend rate*
5.0%
*Financing rate (profit rate) changeable by bank and differs from time to time
*Based on ASB income distribution for financial year 2021
Which type of investor are you?
| Investor A | Investor B | Investor C | |
|---|---|---|---|
How you manage dividend | Retained the dividend | Use dividend for lifestyles and hobbies | Use dividend to pay the monthly instalment (dividend rolling) |
Outcome | You will enjoy optimum return and benefits from the long term investment through the power of compounding. | You will miss the opportunity to benefit from the power of compounding on your investment. | You only earn the financing amount at maturity and missed the opportunity to benefit from generating return from compound dividend. |
Accumulated ASB dividend | RM82,665 | NIL | NIL |
Total investment at maturity | RM132,665 | RM50,000 | RM50,000 |
Where unit trust loan financing is available, investors are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units. The disclosure statement will be provided by bank for ASB financing application.