3.
Cable three is a bond trust.
Bond trusts are similar to equity unit trusts. The main difference
is that a bond trust invests in bonds, which are also known
as debt securities. These debt securities can be corporate bonds,
Malaysian government bonds, Islamic bonds, mortgage bonds and
short-term instruments.
Holding
assets in a bond fund can help you mitigate interest rate
risks. A bond fund manager will invest in long-term corporate
and government bonds in a falling interest rate environment
and shift into short-term bonds when interest rates are rising.
Bonds
pay a fixed interest rate for a fixed period of time. The
advantages are liquidity and stability of capital. When you
invest a portion of your funds in a bond fund, you must also
be a careful shopper and ask about the fee structure and the
fund manager's performance over at least 10 years. You need
to find a fund manager who is well seasoned and experienced.
Besides
bond trusts, equity unit trusts and property trusts what other
investment products are available in Malaysia?
There are many other investment products on offer in Malaysia.
You should always carefully assess the risks and consult a licensed
investment professional before investing in something you do
not understand. Some of these products include:
 |
KLSE
Shares and warrants |
|
Index
funds which track the KLSE 100 share index. |
|
Small
capitalisation growth funds which invest in second board
shares, and emerging growth companies, |
|
Crude
palm oil futures contracts |
|
KLSE
Composite Index futures and options contracts |
|
MGS
futures |
Go
to the Investment
Products section to find out more.
|
