Understanding Key Investment Documents Before You Start Investing
Embarking on your investment journey can feel overwhelming — especially with so many options and unfamiliar terms. But just like any other journey, having the right knowledge and tools can make all the difference.
When it comes to unit trust investments in Malaysia, being well-informed isn’t just recommended — it’s essential. Before committing your hard-earned money to any fund, take time to understand a few key investment documents. These provide transparency, build your confidence, and help you make informed and smarter financial decisions.
Here’s a simple guide to the documents every unit trust investor should know:
1. Prospectus / Information Memorandum (IM)
Also referred to as a Master Prospectus when it covers multiple funds, this document is your user manual for the fund. It outlines the fund’s objectives, strategies, risks and fees.
Whether you're a first-time investor or experienced, reading the Prospectus or IM before investing is strongly recommended. Fund houses are required by regulators to make this document available to all investors.
2. Supplemental Prospectus / IM
This document updates or amends the main Prospectus or IM. It may include changes in investment policy, new benchmarks, or fee revisions. Always read the Supplemental Prospectus together with the main Prospectus or IM to ensure you have the latest information.
3. Product Highlights Sheet (PHS)
The PHS offers a concise overview of a fund’s key features — including its objectives, suitability, risk level, and fees. Think of it as the executive summary of the Prospectus, giving you a quick but essential snapshot before you invest.
4. Invest Facts (Fund Fact Sheet)
At Hong Leong Asset Management, we call our Fund Fact Sheet “Invest Facts”. Updated monthly, it gives you a snapshot of your fund’s performance, asset allocation, and overall health. Reviewing your Invest Facts regularly helps you stay informed and confident in your investment decisions.
5. Semi-Annual & Annual Reports
Published twice a year, these reports provide detailed insights into a fund’s performance, strategy, and financial statements. The Annual report is audited for added transparency, ensuring you have an accurate picture of how your fund is managed.
Why These Documents Matter
Whether you’re starting out or already investing, these documents are your most reliable reference points. They:
- Help you understand the fund’s objectives, risks, and costs
- Keep fund providers accountable and transparent
- Empower you to make decisions confidently and responsibly
By familiarising yourself with these documents, you’re not just following best practices—you’re equipping yourself with the clarity to build a stronger financial future.
Need Help?
If you would like to learn more about unit trust investments or speak with our licensed financial consultants, we’re here to help. Click here to reach out to us!
Please read our disclaimer before investing: www.hlam.com.my/disclaimer. This content was not reviewed by the Securities Commission Malaysia (SC).