Unit Trust Investment Strategies for 2026

Unit Trust Investment Strategies for 2026

I first wrote about unit trusts back in 2017. No need to look for me if you intend to buy, I am not any unit trust agent. Just post in your social media that you want to buy unit trust and I am sure someone would call you. Coming back to the article.

At that time, my point was quite simple: unit trust can be a useful investment, but it is not simply buy, forget and hope.

Almost 10 years later, I still think the same way. In fact, perhaps it is even more important today.

According to the Federation of Investment Managers Malaysia (FIMM), Malaysia had 783 authorised unit trust fundsas at May 2026, with total net asset value (NAV) of about RM630.8 billion and almost 28 million accounts.

So yes, unit trust is definitely not some small investment product anymore.

But with hundreds of funds available, the question is no longer “Should I buy unit trust?”

The better question is:

Which unit trust, why am I buying it and what am I expecting from it?

UNIT TRUST VS STOCKS

Let’s keep this simple.

	Unit Trust	Buy Stocks Yourself
Who chooses the investments?	Fund manager	You
Diversification	Usually easier	You need to create it
Starting capital	Can start relatively small	Depends on share price/brokerage
Time required	Lower	Higher
Control	Lower	Much higher
Professional management	Yes	No
Fees	Usually higher	Usually lower
Potential to outperform	Depends on fund manager	Depends on you
Emotional decision-making	Can be reduced	Can be very high

And here is the interesting part.

A lot of aggressive unit trusts are investing in equities anyway.

So when the stock market falls, the unit trust can fall too.

Buying a unit trust does not mean your money is protected from the stock market.

What you are really paying for is professional management, diversification and convenience.

That can be valuable.

But it is not free.

AND MALAYSIA’S STOCK MARKET?

The FBM KLCI was around 1,708 points on 4 September 2026. It has also experienced plenty of volatility during the year.

At the same time, Malaysia’s unit trust industry has continued to grow.

FIMM reported that the industry’s NAV increased from RM546.08 billion in 2024 to RM580.17 billion in 2025, a 6.2% increase. Balanced and mixed-asset funds were the largest category, followed by equity funds.

This tells me something.

There is no need to think of unit trust and stocks as either-or investments.

They can actually complement each other.

For example, someone may use unit trusts for diversified exposure to global markets while separately buying Malaysian stocks that he or she understands well.

That can be much more practical than trying to become an expert in every market.

SO WHAT SHOULD WE DO BEFORE BUYING?

#1 — Understand what the fund actually owns

Don’t just look at the fund name.

“Technology Fund”, “Global Fund”, “Growth Fund” sounds nice.

But what companies are actually inside?

Are they US technology companies? China? Malaysia? Emerging markets?

Read the fund factsheet.

Look at the top holdings.

If you recognise some of the companies, even better.

In my original article, I suggested learning about the companies owned by your unit trust.

I still think this is one of the best tips.

Because eventually, you may discover that you can invest directly in some of those companies yourself.

#2 — Look at the fees

This is one area many investors ignore.

There may be sales charges, management fees and other expenses.

A fund returning 8% and another returning 8% are not necessarily giving you the same outcome if their costs are different.

Even fund providers themselves remind investors that fees and charges affect returns and that investors should not rely solely on fund rankings.

Small percentages become big money when compounded for 10, 20 or 30 years.

#3 — Don’t buy just because your friend bought it

This one is important lah.

Your friend may have made 20%.

Great.

But what was his starting date?

What was his risk level?

What was his investment horizon?

And most importantly, what happens if the fund falls 20%?

If you cannot answer these questions, perhaps you are not ready to buy it. Definitely not ready to just follow what your friend bought too.

#4 — Know your fund manager and adviser

This is something I emphasised in my original article.

I don’t simply want someone to sell me a unit trust.

I want someone who can explain:

Why this fund?

Why now?

What are the risks?

What happens if the market changes?

And when should we consider switching?

Malaysia’s Securities Commission requires unit trust funds to be authorised and regulates the framework governing their operation.

But regulation does not mean every investment will perform well.

It simply gives us a regulated framework.

We still need to make our own decisions.

BUY AND FORGET?

Actually, I would say buy and monitor.

Not buy and stare at the NAV every morning. Haha.

If your investment horizon is 10 or 20 years, daily movements are mostly noise.

But review the fund perhaps once or twice a year.

Ask:

Is the fund still doing what I bought it to do?

Has the manager changed?

Has the investment strategy changed?

Are the fees still reasonable?

Is performance consistently poor compared with an appropriate benchmark and similar funds?

If something has fundamentally changed, then perhaps it is time to reconsider.

MY VIEW

I have always believed in diversification.

Property can be one bucket.

EPF can be another.

Stocks can be another.

Unit trust can be another.

Cash and fixed deposits can provide another layer.

We don’t have to find one magical investment that will make us rich.

That is usually where the trouble starts.

For me, unit trust can be useful precisely because I don’t want to manage every single investment myself.

But I also don’t want to hand over my money and completely forget about it for 20 years.

Buy. Understand. Monitor. Review. Compound.

That’s probably a better way to look at unit trust.

And yes, if someone tells you that unit trust is completely passive and you can just buy and forget, perhaps ask one more question:

“Forget until when?”

Happy investing yeah.

This article is for general information and is not a recommendation to buy or sell any particular unit trust or stock. Please consider your own objectives, risk tolerance, fees and investment horizon before investing.

Sources

• Original article: “Unit trust is not just buy and forget” — kopiandproperty.com
• FIMM — Unit Trust Quick Statistics
• Securities Commission Malaysia — Fund Management & Products
• Securities Commission Malaysia — Guidelines on Unit Trust Funds
• Bursa Malaysia — Market Data Overview
• Public Mutual — Investment Disclaimer and Fund Information

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