Public Mutual seems to be coming out with unit trusts geared toward millennials via funds with the name starting with an “e”. This kind of funds usually have 2 very distinct features which is low initial investment (RM100) and lower sales charges (<5%). Also these funds are only available via Public Mutual's online portal aka Public Mutual Online (PMO) and all statements of transactions are all electronic, there will not be any physical statement mailed to investors. E-series funds are funds that have low minimum investment requirements, statements only available online and can only be bought via PMB online portal.
The management fee for the fund will most likely 1.8% per annum.
The last unit trust with these features was Public e-Islamic Sustainable Millennial Fund PIUSEQF. From the launch price of RM0.25, it is currently at RM0.2677. This was the 2nd fund that Public Mutual came out that targeted milennial generation.
The latest unit trust coming out is Public e-Asia Pacific REITs Flexi Fund e-REIT fund. Similar to PIUSEQF, you do not need to put in RM1000 as initial investment, you can start with just RM100. This new fund focuses on buying REIT and Real Estate stocks. The fund will be launched on 17 February 2020. The fund will focus on REITS in Asia Pacific.
I see Public Mutual came out with fund due to the popularity of REITS in recent months given the low interest rate environment in Malaysia. Low interest rates typically benefits REIT stocks as they will have less repayment on their loans and can buy more properties at lower interest rates. From a cost perspective, the sales charges has to be lower considering the rise of robo advisors that do no charge any sales charges.
Kudos to Public Mutual for coming out with products for millennial but in my opinion there are a lot of areas where Public Mutual can improve on to attract this targeted group.
For example
Kudos to Public Mutual for coming out with products for millennial but in my opinion there are a lot of areas where Public Mutual can improve on to attract this targeted group.
For example
- Allow purchase of mutual funds using ewallets like Boostpay, TouchNGo
- Lower the sales charges to 2%
- Lower the management fees to 1.5%
- Need a mobile app
- The short name of the fund is way too long
- Do more social media marketing that focuses on how investing can improve their lifestyle rather than telling them to save for retirement. Future will unlikely be about retirement, rather it will be totally about work and play until extreme old age.
I will most likely subscribe to this fund considering REITS investment vehicles are moderately risky. I also like this e series of fund as I can just put in RM100 then monitor the performance over time and decide whether to add more, I don't need to put in RM1000 and then find out my investments dropped by x percentage due to some global event. The returns of REITS are quite steady and can easily beat bank fixed deposit returns. This fund offers an opportunity to invest in real estate sector without footing out a big initial amount.
Theedgemarkets came out report today also recommending REITS as a good investment vehicle in this period of low interest rate environment.
https://www.theedgemarkets.com/article/where-put-money-low-interest-environment?fbclid=IwAR2rSbM7XhtsfUqj2TBek_nJjCIiYYCXHRYMOQDtfDBCaR42O3kMY_XY72g
Update 20200225
I just loaded up RM200 into this REIT unit trust. I didn't put in a lot because I felt that the world has yet to see the impact of the COVID-19 corona virus on world economies. Landlords are being asked to waive or reduce rentals in some commercial REITS. Nonetheless, REITs tend to have a long term upward bias direction so I'm still going in, when we I have a clearer picture of the situation then only I will put in more to this REIT unit trust.
Links
https://vimeo.com/392398065
Theedgemarkets came out report today also recommending REITS as a good investment vehicle in this period of low interest rate environment.
https://www.theedgemarkets.com/article/where-put-money-low-interest-environment?fbclid=IwAR2rSbM7XhtsfUqj2TBek_nJjCIiYYCXHRYMOQDtfDBCaR42O3kMY_XY72g
Update 20200225
I just loaded up RM200 into this REIT unit trust. I didn't put in a lot because I felt that the world has yet to see the impact of the COVID-19 corona virus on world economies. Landlords are being asked to waive or reduce rentals in some commercial REITS. Nonetheless, REITs tend to have a long term upward bias direction so I'm still going in, when we I have a clearer picture of the situation then only I will put in more to this REIT unit trust.
Links
https://vimeo.com/392398065
