Investing in Fixed Income Fund

Disclaimer: This is a personal, non-financial professional view. Please seek professional advice on any investment decisions.

A fixed-income fund is mutual funds that own fixed income securities like treasuries and bonds. Typically, the funds seek to earn a higher than fixed deposit board rate returns while preserving the principle. If you are risk-averse towards stocks and shares but like to make a little more than your savings account, a fixed-income fund is a good option. 

An advantage of this investment is that income distribution is quite frequent; monthly or quarterly, you will receive the returns consistently like lunch money.

When you invest in these funds, it works like unit trust, whereby your investment is converted into units invested at NAV price. The price moves daily, like the stock market.

My first investment in this asset class is with Opus Asset Management when they introduce payment with zero buying fees and zero redemption fees.

OPUS (not the handphone) Asset Management offers two options for the public, the Income Plus Fund (IPF) or Money Plus Fund (MPF). IPF returns are higher but more volatile in the unit price. If you need to access the money in the short term, MPF is the better choice.   

Access to this Investing in OPUS Touch is simple and open to all with a minimum investment of RM1,000 and top-up of RM100.

By investing with e-wallet funds, I get the e-wallet rewards and unit trust return without fees. The expected return of MPF is >3.0%, while e-wallets work up to 2-3% rebates (for now); The combined returns for the first year are expected to be >5%. 

I consider this lucrative for a low-risk, low price-swing investment. It is a contender to Fixed Deposit and I find it logical to save the tail-portion of my emergency fund in such an instrument, which I did. The spending limit of e-wallets is actually limiting my investment in this. 

This plan works under the assumption of zero fees. A review will be made if there are changes to this arrangement. Click here to Opus Touch Asset site (Non-Affiliated)

Leave a Reply

Your email address will not be published. Required fields are marked *