Unit Trust Gain

I have read the financial column regarding unit trust.

One of the reader has requested the government to reduce the interest for unit trust depositor which is 5% now (for cash depositors)

He had made a calculation like this.

If you invest RM1000, the unit trust amount will be RM950 only since RM50 will be deducted for the unit trust fee. So the amount invested will be RM950.

Normal ASB deposit Unit Trust
First year RM1000 RM950 (if the unit trust unit RM1.00)
Second Year RM1070 (7%) RM1070 (you need 11.21%) (Unit trust need to
be RM1.11 in order to make similar profit like ASB)


If we calculate for long term (5 years)
UT Unit Unit Trust % gain needed ASB
First year 1.00 950 0 1000
Second Year 1.11 1054.5 11.21% 1070
Third Year 1.19 1128.35 7% 1144.9
Forth Year 1.27 1207.25 7% 1225.04
Fifth Year 1.36 1291.8 7% 1310.79