With the Covid19 pandemic raging across the globe, buying unit trusts can be done online. Public Mutual (PMB) is the country's largest unit trust company, its unit trusts can be purchased online via Public Mutual Online. You no longer need a unit trust consultant to do it. Your unit trust consultant is still relevant however for providing fund recommendation and advice on achieving your financial goals.
Public Mutual is so big that the funds it offers are so many (in hundreds) until it can be really confusing to the average investor. Their funds can go from very broad based index funds to industry and country specific funds. Public Mutual even has thematic funds like ESG (Environment, Social and Governance) (PeCEF)Public Mutual funds covers huge verticals of funds, there almost a fund for everyone's risk appetite and preferences.
Public Mutual is also one of the larger PRS (Private Retirement Scheme) fund providers in Malaysia. You can claim a maximum of RM3,000 per year back from the tax department for buying PRS.
EPF akaun 1 money can be used to purchase Public Mutual funds via i akaun site. This scheme is called EPF members investment scheme.
For country specific, Public Mutual has funds that focus in Japan, US, India, Vietnam, Europe, China. Some of the country specific funds also can be divided into small cap and big cap funds.
Public Mutual recently launched their Mobile App called pocket PMO (Public Mutual Online). It has all the functionalities as the web version.
📝Like all Mutual Funds/Unit trusts companies, Public Mutual charges sales charge for each purchase. The sales charges charge will vary depending on the fund type (equity, bonds, money markets).
Personally, I only use Public Mutual to buy industry (AI and Healthcare) and country specific funds (US, China, India, Indonesia, Singapore). I don't really buy Public Mutual funds that invests in Malaysian equities. This is because I can directly purchase Malaysian equities easily on stock brokerage platforms. My Public Mutual strategy is to invest in funds that invests in growth industries and countries.
I wrote an article on my Public Mutual holdings here :
📌PB and Public series of fund by Public Mutual difference (Most commonly asked Question) ❓❓
Public Mutual is registered as subsidiary to Public Bank and its role is to sell unit trust only while Public Bank handles all banking related business. Public Mutual markets 2 types of funds for both entities (Public Mutual and Public Bank).
Public Mutual agents only sell Public series of funds while Public Bank Sales Executive sells PB series of funds. Both sales executives/unit trust consultants derive some additional income from the sales charges upon purchase of either both funds, that is why there are sales charges during the purchase of these funds.
Performance between PB and Public series funds are expected to be similar as both are managed by Public Mutual, just the different funds are sold by different entities (eg Public Mutual agent and Public Bank sales executive).
Do note the term unit trusts and mutual funds are used interchangeably as both mean the same thing. The term mutual funds are typically used in US while the word unit trust is used in Malaysia.
📌Public Mutual E-Series Funds (2nd most commonly asked Question) ❓❓
E-series funds from Public Mutual are catered to millennials (people born in the 90s) preferences. These funds have the following characteristics. This is in line with the trend of robo advisors, online only purchases to bring cost of investment lower. I view such funds as starter funds for newbies or people still on the fence and have doubts about investing in unit trusts/mutual funds.
- Lower sales charges
- Lower entry (only RM100 to start)
- Online only (can only purchase from Public Mutual web and mobile app)
- No involvement of unit trust consultant, sales executive.
As there are no sales charges for e-series of funds, don't expect your unit trust consultant or unit trust sales executive to push these funds aggressively like the other series of funds. The trend for unit trust/mutual funds seems to be moving towards low or 0 sales charges model.
My wishlist for these types of funds is for them to abolish totally the sales charges and only charge management fees. This will bring the funds features up to par with what robo advisor companies are offering now.
📌Public Mutual PRS Default and Non Default option (3rd most commonly asked Question) ❓❓
PRS Funds with the "Default" option ticked means the funds will auto switch to a more conservative fund when you reach certain age category. If you are having a aggressive fund and you reach 40, it will switch to a moderate fund and then sometime later it will switch to a conservative fund. This switching is done all automatically by the Public Mutual system.
📌Performance between Conventional vs Islamic Fund aka Shariah Compliant (4th most commonly asked Question) ❓❓
There is no strong correlation of performance between conventional and Islamic funds. A common generalization is that conventional funds tend to perform well in bull markets while Islamic funds tend to perform in a slightly bear market (not too bearish kind of doom and gloom environment). It is just that Islamic funds do not have access certain industries (business might involve some non halal elements) and markets so their investments might be more defensive in nature.
If we take EPF returns as a guide, the conventional EPF fund outperform the Islamic version by a few point percentage.
📌Bonus question - cut off time for PMB funds❓❓
4PM is the cut off time
👍Referral (Public Mutual CRP Customer Referral Program)
If you plan to sign up for Public Mutual online, use my referral code OCJ5000047, each of us will get an entry to win some prizes, the prizes varies each week and month. To be frank, at this moment the referral program from Public Mutual is not that attractive but there no harm using my referral code if you intend to sign up anyway to buy Public Mutual funds, hopefully either one of us win something from Public Mutual's CRP campaign.
Below are the prizes for new investor sign up campaign.
Details on the customer referral program (CRP) is here on Public Mutual's
site.
❗Note : Always read the fund prospectus 1st to check the sales and management charges and then also to see if the fund objectives is the same with your financial objectives. The 2 most important charges to take note is the Sales Charge and Management Fee.
Additionally, Public Mutual always warns that you are not suppose to bank in money to your mutual fund/sales executive's accounts. They are only authorized to market these products, they are not authorized to collect investments on behalf of clients.
Public Mutual Online Registration Link
📌Links
📌 Public Mutual Mobile App - Pocket PMO
