Unit Trust Quiz 1 Beginners Level

The statement is false because Unit Trust investment is not limited to a short term period of 1 to 2 years. Unit Trusts are a type of collective investment scheme that pool funds from multiple investors to invest in a diversified portfolio of assets. The investment period for Unit Trusts can vary depending on the investor's objectives and the specific fund they invest in. Some Unit Trusts may have a short term focus, while others may be designed for longer term investment goals. Therefore, the statement is incorrect.

Unit trust funds do indeed provide three types of income: capital gain, dividend, and unit split. Capital gain refers to the increase in the value of the units held in the fund, which can be realized when the units are sold. Dividends are payments made by the fund to its unit holders from the income generated by the underlying investments. Unit split occurs when the fund decides to increase the number of units held by each unit holder without affecting the total value of their investment. Therefore, the statement is true.

Both statements are correct. The first statement states that one can invest using cash money, which is generally true as cash is a common form of investment. The second statement states that one can withdraw from EPF (Employees Provident Fund) to invest in unit trust funds, which is also true as EPF allows for partial withdrawals for investment purposes. Therefore, both statements are accurate.

The correct answer is "Units comprises of various securities traded in local or overseas trading house." This means that a unit trust is made up of different securities that are bought and sold in either the local or overseas trading market. This explanation clarifies that a unit trust is not a trust agreement between an individual and a unit trust company, nor does it involve shares traded on the local market.

The correct answer suggests that Unit Trust Investment promises future financial freedom. This implies that investing in Unit Trust can potentially lead to a secure financial future and provide individuals with the means to achieve their financial goals and independence.

The statement is false because money in a Unit trust investment is not guaranteed by the PIDM (Perbadanan Insurans Deposit Malaysia). The PIDM only guarantees deposits in banks and Islamic banks in Malaysia. Unit trusts are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of assets, such as stocks, bonds, and other securities. The returns on unit trusts are subject to market risks and are not guaranteed.

The statement is false because tax on profit from unit trust investments is not applicable in all countries. The tax laws and regulations vary from country to country, and in some cases, the profit from unit trust investments may be exempt from taxes or may be subject to different tax rates. Therefore, it cannot be generalized that tax needs to be paid for all profits made from unit trust investments.

The statement is false because the money you make in Unit trust investment is not guaranteed by the unit trust company. Unit trusts are investment funds that pool money from multiple investors and invest in a diversified portfolio of assets. The value of the investment can fluctuate based on market conditions and the performance of the underlying assets. There is no guarantee of returns, and investors bear the risk of potential losses.

The minimum amount of money that can be invested in any one fund when buying for the first time is RM 1000. This means that if someone wants to invest in a fund, they must invest at least RM 1000.

The correct answer is "No" because while Bank Negara of Malaysia is a regulator in Malaysia, it does not regulate Unit Trust investments. The regulation of Unit Trust investments in Malaysia is done by the Securities Commission. Therefore, both Bank Negara and the Securities Commission are regulators in Malaysia, but Bank Negara does not regulate Unit Trust investments.