Types of Unit Trust

Recently I attended a workshop organized by the Malaysian Financial Planning Council (MFPC), titled "Elevating Financial Planning Literacy of Malaysians". As the Unit Trust Industry in Malaysia gets more complex and varied, it has become harder to actually classified the types of Unit Trust. But according to MFPC, the types of Unit Trust can be divided into four, namely

Equity Fund
Equity Fund primarily invests in equities or shares of listed companies, both locally or overseas, or both.

Balanced Fund
Balanced Fund invests in a range of asset classes with an objective to diversify risks. It may invest in a combination of cash, equity, fixed income and property, both locally and overseas.

Islamic Fund
Islamic Fund invests in a portfolio that complies with Syariah principles.

Specialty Fund
Specialty Fund may invests in a single industry, specific geographical area or particular class of investments. Examples of these funds are Public Far East Consumer Theme Fund (single industry), Public China Select Fund (specific geographical area), and Public China Titan Fund (particular class).