The normal sales charge for most equity funds are around 7%. However, at Fundsupermart, the advantage is that most equity funds are sold at around 2% sales charge. The sales charge is applied at purchase.

The annual expense of the fund is what is charged to the fund. This includes the fund manager's annual management fee, and other administrative fees that are incurred in the running of the fund. You do not really need to fork out additional money to pay for the annual management charge to the fund manager. They will actually deduct it from the Net Asset Value of the fund daily, and the published price will take into account of the pro-rated annual management charge.

The Offer Price is the price at which you buy an investment (the fund manager "offers" to sell you the units at this price).

The Net Asset Value (NAV) is the market value of a unit trust's total assets, minus liabilities, divided by the number of units or shares outstanding. So it is the price per unit of the fund. This value is used to determine the prices for subscribing and redeeming units.

Bid/NAV Priced Funds

Example :

• NAV price : RM0.50
• Normal sales charge : 7%
• Fundsupermart sales charge : 2%
• Investment Amount : RM10,000

If you invest RM10,000 into the fund at the normal sales charge of 7%, you will receive 1,8691.588 units.

Investment amount = RM 10,000/1.07

= RM 9345.794

Units = Investment Amount /NAV price

= RM9345.794 / RM0.50

= 18,691.588 units

Buy at 2% Fundsupermart sales charge

If you invest RM10,000 into the fund at the lower sales charge of 2%, you will receive 19,607.842 units.

Investment amount = RM 10,000/1.02

= RM 9803.921

Units = Net Investment Amount /NAV price

= RM 9803.921 / RM0.50

= 19,607.842 units

Calculation of WAC is gross amount invested divided by the number of units. As the gross amount takes into consideration the sales charges that you pay when you purchase the fund, hence the WAC will be higher than buying price.

All distribution of income (if any), on behalf of you, will be reinvested in units of the relevant Fund through the subscription by Fundsupermart except OSK-UOB Institutional Islamic Money Market Fund. Dividend (if any) for OSK-UOB Institutional Islamic Money Market Fund will be paid out by cash.

You will see additional units in your fund holdings. They will be reflected under your historical transactions as a purchase. You will also receive an online statement via email with regards to the transaction. All dividend reinvestment will not result in an increase in the cost of investment. The rationale for doing so is that dividend is not an injection of new monies by the investors as such it should not increase the cost of investment. By not reducing the cost, the weighted average cost as a result decreases with every dividend reinvestment.

Note: Dividend rate and reinvestment price are determined by the fund managers. Historical records of dividends declared can be viewed under the ‘Fund Info’ section in the fund factsheets.