If you’re used unit trust investment, you will notice that there is sales charge that comes with its subscription, usually deducted from the total amount. That means, the number of units are purchased after deducting this charge from the total amount invested. The sales charge can range from 1.5% to 3%, which can be significant if you are investing a large amount.
I recently found a trick to skip this charge. Very simple. Purchase the unit trusts via KWSP (EPF) i-Invest feature. EPF allows its contributors to use up to 30% of their Account 1 (now Retirement Account) balance for the purpose of unit trust investment. Based on my experience so far, there is no minimum amount required and all unit trusts purchased so far via -Invest are free of any sales charges.
If you’re concerned about using up your EPF savings, fret not because you can always voluntarily contribute up to RM100k/year to make up for the ‘lost’. One of the cons that I can think of is that, you are limited to the list of funds that EPF has approved i.e. funds that are regarded as safe. These usually exclude the high-risk-high-return ones.
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