The effectiveness of marketing communication tools: a case of Amanah Saham Gemilang / Siti Liyani Hakimah Jamalludin

Unit trust is an unincorporated mutual fund structure that allows funds to hold assets and pass profits through to the individual owners, rather than reinvesting them back into the fund; that is set up under a trust deed (Investopedia). The investor is effectively the beneficiary under the trust. The terms of unit trust fund and mutual funds are normally used interchangeably. However, it should be noted that there are slight differences between the two. A unit trust fund is generally considered as a low-risk, low-return investment as compared to mutual funds that typically incurs lower annual operating expenses because they are not buying and selling shares. A mutual fund is normally established as a limited liability company, where investors are like shareholders in a company, while a unit trust fund operates under a trust system where investors' assets are entrusted to trustees (Ainul Azam & Co, 2003-2012). Investment managers are required to comply with the requirements on Unit Trust Fund Deed, the Capital Market and Services Act, 2007, amended from time to time, the Guidelines and other relevant laws when managing the unit trust fund and an independent auditor is appointed to prepare and audit the accounts of the unit trust fund each year (ASNB, 2008).