30-10-2002:

Now best time to invest in unit trusts, says fund manager body
By Joycelyn Lee, 12.17pm

It is the best time to invest in unit trusts now as prices are low but investors have to ensure that they are planning for the long-term and not for short-term profits, says Federation of Malaysian Unit Trust Managers (FMUTM) president Datuk Abdul Azim Mohd Zabidi.

"This is the best time to do it. Any time is a good time to invest in unit trusts but this time is the best. It is an opportune time.

"The market is low so the upside potential is great. Secondly, it is a good time to start averaging down on the investments that you already have made in unit trusts prior to this," Abdul Azim tells theedgedaily.com in an interview.

However, Abdul Azim warns investors not to venture into unit trusts for the short-term as fund managers have long-term investment strategies.

"You have to have confidence in the manager managing the fund, for them to time its entry and exit from the market as and when they see the opportune time. In more developed markets, they actually follow the fund manager and not the fund," he said.

Currently, unit trusts manage about 10 per cent of the net asset value of funds invested in the stock market. The industry aims to manage up to 40 per cent of funds in the market by 2020.