TAUFIQ A105032UKM BANGIMALAYSIA

A statistical indicator providing a representation of the value of the securities which constitute it. Indices often serve as barometers for a given market or industry and benchmarks against which financial or economic performance is measured.

For an example, a stock index, for instance, would measure change in selected stock prices. A good example of an index that we have all heard about is the Kuala Lumpur Composite Index, more commonly known as the KLCI.

2 ways to invest in an

index

Unit Trust Fund

Exchange Trade Fund

Collective investment scheme that allows investors with similar investment objectives to pool their funds to be invested in a single portfolio of securities managed by professional fund managers.

The categories of unit trust are equity UT, property UT, balanced and diversified UT; and Islamic UT.

Diversification / Spread of risk

Professional Management

Liquidity

Ease of purchase

Investment opportunities

Affordable Investment

An Exchange Traded Fund (ETF) is a type of fund that tracks an index, but can be traded like a stock. Because ETFs are traded on stock exchanges, they can be bought and sold at any time during the day

ETF is a new type of investment vehicle offered on the Bursa Malaysia. When you buy an ETF, you enjoy exposure to this entire portfolio of securities with only one purchase. And you can sell it in a single transaction as well.

DIAMONDs (Diamonds Trust Series I )FITRs ( Fixed income exchange traded securities )HOLDRs ( Holding company depository receipts ) iShares ( iShares - possibly "index shares“ )QUBEs ( Nasdaq-100 tracking stock (QQQ)  )Spiders ( Standard & Poors' Depository Receipts (SPDRs) )StreetTracks ( StreetTracks - State Street Global Advisor ETFs )VIPERs ( Vanguard Index Participation Receipts )One common type of ETF is an index Tracking Exchange Traded Fund .This kind of fund is made up of a basket of securities ( equities, bonds, or a combination) designed to track the performance of a specific index.

The first exchange-traded equity ETF listed on Bursa Malaysia.The ETF invest in a group of stocks comprising the 30 largest companies in the FTSE Bursa Malaysia Emas Index.Below are the 30 largest companies which constructed equities ETF and historical benchmark movement .

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The first exchange-traded bond ETF listed on Bursa Malaysia

This ETF invests in a basket of Ringgit denominated Government & quasi-Government bonds in the iBoxx ABF Malaysia Bond Index

ETFs Unit Trust Funds TRANSACTION METHOD Traded publicly on Bursa Malaysia based

on its trading price. Traded publicly on Bursa Malaysia based

on its trading price.

TRADING TIMES Available for trading throughout Bursa

Malaysia’s trading day. Buying and selling is carried out on a real-time basis throughout the trading day.

Each fund has its own set dealing days. These may not be every business day. Buy and sell orders are executed at the end of each dealing day.

TRADING CHANNELS Trading can be carried out via any firm or

financial institution licensed by or registered with Bursa Malaysia to deal in securities.

Buy and sell orders can only be handled by the index fund’s manager or its appointed distributors.

FUND INFORMATION Market price and trading activity data is

readily available on Bursa Malaysia’s website or through any quote vendor. Information is also available from licensed securities dealers and usually on the ETF’s own website.

Information is usually available from the fund manager and from the fund’s appointed distributors.

Diversification - ETF provides you with a diversified portfolio of instruments – all in a single fund.

Low cost investment - ETF offers low expense ratio, generally lower than unit trusts. The transaction cost is similar to trading of ordinary shares.

Easy access to information - Market price of an ETF is available on real-time throughout the trading day at the Bursa Malaysia.

Liquidity & flexibility - You may buy or sell ETFs through your remisier or via online trading during normal trading hours similar to an equity. Like traditional stocks, ETFs can be traded intraday.