Three major funds announce their dividend payout rates in the first quarter of each year, namely KWSP, SSPN and ASM.
This year, the Employees Provident Fund Board (KWSP) paid out 6.10% for its conventional provident fund, while the Islamic Provident Fund paid out 5.65%. The latest dividend payout for the SSPN is 3%. As for the Malaysian Trust Fund (ASM), the dividend payout is 4%.
Of these three funds, EPF has the highest dividend payout. However, the disadvantage of EPF is that you have to wait until you reach the age of 55 before you can withdraw your money, or you can only withdraw your savings from your second account to buy a house or pay for medical bills.
National Education Savings Fund (SSPN) is divided into Simpan SSPN Prime and Simpan SSPN Plus, which is a general savings fund that allows deposits and withdrawals at any time. The SSPN Prime is a regular savings fund that can be deposited and withdrawn at any time, while the Simpan SSPN Plus is an insurance-inclusive savings fund where a portion of the monthly contribution is treated as a premium and withdrawal conditions are attached.
ASM announces its latest dividend payment at the end of March each year. In previous years, the ASM dividend payout could be as high as 6%, but this has been gradually reduced in recent years, and the method of deposit is very difficult, meaning that you have to sell units before you can buy them. But ASM is very easy to withdraw and there is no restriction, and the price per unit is kept at RM1.00.
KWSP, SSPN and ASM all have their own characteristics. If you don’t know how to invest, or don’t have the time to learn how to invest, then these three low risk funds are perfect for you.
