Good investments have been a little hard to come by in these recent times of economic downturn. However, recently, a variety of financial instruments have been offered by the Government in an attempt to raise funds and to offer the rakyat an investment rate above the measly FD rate. Hot on the heels of the wiped out Sukuk Investment Bonds, Permodalan Nasional Berhad (PNB) has just announced they will be offering Amanah Saham Malaysia and Amanah Saham Wawasan investments effective tomorrow.

Permodalan Nasional Berhad (PNB) will offer an additional 3.33 billion units of Amanah Saham Malaysia from Tuesday and two billion units of Amanah Saham Wawasan 2020 from April 27, said Prime Minister Datuk Seri Najib Tun Razak. The maximum allowed per investor is 20,000 units. (source)

Should you consider investing in these funds? Read on below.

Should You Invest In Amanah Saham Malaysia or Amanah Saham Wawasan?

These funds received tremendous demand, especially from the non-Malays, when they were first launched as it was the very first time funds such as these were made available to non-Malays. Billions were sold out nation-wide in just half an hour! So if you can find a way to get to the bank the minute it opens and be the first 10 to 15 in the queue, you might find yourself unable to buy simply because rich people across the country have wiped it all up!

From an investment point of view, these funds do provide reasonable returns of approximately 6% to 7% per annum. Previously, investors were given a cheque for their interest but now most of it is debited back into the account in the form of additional units which is also good as it helps your fund grow.

Withdrawal is easy and can be done at any bank or post office at the same rate of RM1 per unit. However, at the rate of 6%, withdrawals are not really encouraged as it will be best to leave your investments there to earn more interest in the long term.

Although some investors did have some concerns over what their money might be used for politically, the returns do provide an attractive form of investment, especially in these times of economic difficulty and falling interest rates. So, do look out for the full terms of the funds in the newspapers and ensure you read and understand them carefully before investing.