Switch Funds For Free with FSM’s New Credit System!
March 10, 2009
Hot on Fundsupermart.com is the credit system. This new system allows investors to switch funds without paying the tier charge.
Author : iFAST Editorial Team
Untitled Document
Intra-switching from one fund to another is now made easier with the new credit system on Fundsupermart.com. Generally, switching between different tiered funds would result in investors paying its tier difference. However, with the credit system, you can utilise available credits to waive off the tier charge.
How do I obtain credits? There are three ways investors can start gaining credits (refer to the Credit Calculation System Table).
Credit Calculation System Table
A switch from a higher tier fund to a fund with zero sales charge would give you credits by multiplying the fund’s indicative price with the number of units.
Example: If you switch 10,000 units of Fund A (2% sales charge) with an indicative pricing of RM1.50 to Fund B (0% sales charge), the total switching amount is RM15,000 (RM1.50 x 10,000 units). Thus, you will be able to obtain 15,000 credits.
A switch from a higher tier fund to a lower tier fund would give you credits by multiplying the fund’s indicative price with the number of units and the credit system addition of 25%.
Example: If you switch 10,000 units of Fund A (2% sales charge) with an indicative pricing of RM1.50 to Fund C (1.5% sales charge), the total switching amount is RM15,000. You will obtain 3,750 credits (RM1.50 x 10,000 x 0.25).
A switch from a lower tier fund to a fund with zero sales charge would give you credits by multiplying the fund’s indicative price with the number of units and the credit system addition of 75%.
Example: If you switch 10,000 units of Fund C (1.5% sales charge) with an indicative pricing of RM1.50 to Fund B (zero sales charge), the total switching amount is RM15,000. You will obtain 11,250 credits (RM1.50 x 10,000 x 0.75).
Now that you know how to gain credits, read our FAQ on how the credit deduction system works
What Else Should I Know about the New Credit System?
The free switching is only applicable for intra-switch and not inter-switch.
The credit system is not applicable for the OSK-UOB Cash Management Fund.
If the switch amount is more than the available credits, the normal charges would be applied.
The waiver of fees is only available for the tier difference. The switching fees by the various fund houses are still applicable.
There will be no credit deduction or addition if the intra-switch is performed funds on funds of the same tier.
For more information on the credit system, read our full FAQ.
The Editorial Team is part of iFAST Capital Sdn Bhd.
This article is not to be construed as an offer or solicitation for the subscription, purchase or sale of any fund. No investment decision should be taken without first viewing a fund's prospectus and if necessary, consulting with financial or other professional advisers. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Past performance and any forecast is not necessarily indicative of the future or likely performance of the fund. The value of units and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. Please read our disclaimer in the website.
