Amanah Saham 1Malaysia : Another Mad Rush?!

Posted by Kris | Tuesday, August 04, 2009 | , | 0 comments »

Tomorrow will be another fund launching by the Malaysian Government which truly and deeply needs tons of cash to bail the economy out. Amanah Saham 1Malaysia is a RM10 Billion fund.

The only possible catch here is that the potential 1% surcharge when you buy in the funds. Note that this fine print never existed before for the previous hot selling Amanah Saham Malaysia & Amanah Saham Wawasan 2020.

I don't think there another mad rush and queue to buy into this fund due to the following reasons.

1) The general populace minus the super rich (super rich people usually don't buy into this type of investment which usually has lower returns than stocks, properties, etc. Eventhough it is has much lower risk) must be running dry of cash after a few successful series of government funds such as ASM, ASM2020, Islamic Bond Sukuk.

2) The fund size is quite substantial.

3) The 1% surcharge is a turn-off .As the stock market is rallying, people are more willing to pour money into equities for higher returns.

I think that this Amanah Saham Series is a bubble by itself. At one point, people will no longer be interested in it anymore. Potentially because of over-supply, the returns might not be attractive anymore in the coming years. The clear sign of a bubble is the seller's greed to generate more sales with the assumption that buyers will rush to buy because of the so-called early bird discount.

P.S : I will find time to tabulate how much cash has flowed into the govt coffers just this year alone.

Below are the detail info from the ASNB website.