Unit trust industry set for
double-digit growth
KUALA LUMPUR (June 3, 2013): Malaysia's unit trust industry is expected
to grow by double digits this year, in line with the stock market's bullish
performance and, to a certain extent, the uptake of Private Retirement Schemes
(PRS).
"Yes, we expect growth in the unit
trust industry this year because the equity market is doing well. The growth in
the unit trust industry is in tandem with the performance of the equity
market," Federation of Investment Managers Malaysia (FIMM) CEO Ahmad Zakie
Ahmad Shariff told SunBizrecently.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) has been on a
post-election rally and has gained 6.8% to date. Analysts are bullish on the
performance of the stock market, with many predicting the FBM KLCI to surpass
1,700 points by the end of this year.
Zakie does not expect PRS, which saw the first product launch in
October 2012, to be a major contributor to growth this year due to the scheme's
voluntary element.
"The PRS is voluntary in nature and its contribution is
dependant on disposable income. The more disposable income you have, chances
are you would contribute more but if the disposable income is not that much
then you have a problem," he said.
He also mentioned that the PRS would have to "compete"
with other investment products such as real estate and precious metals, namely,
gold. "These are the challenges that the industry has to face," he
said.
In 2012, Zakie said, the local equity market performed well with
the FBM KLCI increasing by 10.3% and closing at an all-time high at the end of
the year.
To read more,just click the link below....Unit trust industry set for double-digit growth | theSundaily
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