Monday, January 30, 2012

My comments on "Skim SARA 1 Malaysia"

I do not wish to give details on how to apply as you can get it from here, the official website.

I am interested in "how the scheme works" and how actually it benefits the low-income group.

If you browse through the 1SARA website, I believe you CAN NOT find the answer on "exactly" how the whole scheme works (as per the Newspaper).

I couldn't find the clause(s) for the promised RM134 per month, instead, it just mention the following

  • Monthly incentives are provided to the participants in the form of additional Amanah Saham 1Malaysia (AS 1Malaysia)I units.
  • Participants need to pay only the minimum monthly payments for 5 years.
  • Incentive payments are provided every month for 5 years. Participants need to ensure that the minimum 100 units are reserved in the AS 1Malaysia book at any time.
Can someone shares some light on how these actually works?

If you have the basic knowledge of how "UNIT TRUST" function, then you will know what do they mean "Monthly Dividend" or "Monthly Interest" that credit back to you in the form of "UNITs". The value per unit after the distribution of "Monthly Dividend/Monthly Interest" will be adjusted accordingly to reflect the NAV (net asset value) per share.

The best part of the 1SARA website is the following fine print (of course, I have it enlarged)

Total return on the investments may go down as well as up. Past performances of the unit trust funds of ASNB are not guarantees of future performances. Before investing, kindly consider the fees and charges involved.
 Well, I read today paper, Nanyang, the so called "expert" from one the well known financial agency said low-income qualified people must invest as the return is 12% p.a. is so attractive and the Government has their way to make the profit.... I can only say.. ha ha ha.

More news from newspaper
http://www.nanyang.com.my/node/413544?tid=460
http://www.nanyang.com/node/417643?tid=460