Ultimate Guide to Amanah Saham Malaysia (ASM): Dividend Rates, Benefits, and How-to Invest Explained

What is Amanah Saham Malaysia?

Amanah Saham Malaysia (ASM) is a unit trust investment scheme managed by Amanah Saham Nasional Berhad (ASNB), which is a subsidiary of Permodalan Nasional Berhad (PNB). Similar to Amanah Saham Bumiputera (ASB), which is specifically designed for Bumiputeras, including Malays and Indigenous people of Malaysia, Amanah Saham Malaysia (ASM) is open to all Malaysians regardless of ethnicity, designed to encourage Malaysians of all backgrounds to start their investment journey with a stable, low-risk option. 

ASM offers the same fixed-price unit trust with a stable return through annual dividend distributions, depending on the fund's performance. ASM key investment strategy and policy encourage investors to invest in a diversified portfolio of assets, primarily securities listed in BURSA, unlisted securities, fixed income, and money market instruments. The Amanah Saham Malaysia (ASM) fund primarily invests in a diverse range of equities, distributing its investments across various sectors to create a balanced portfolio. This strategy helps spread risk while aiming to deliver consistent returns over the long term. 

However, ASM has a higher annual management fee compared to ASB; the annual management fee charged by ASM is 1%, meanwhile ASB only 0.35%. In addition, it can be challenging to secure ASM units as there are a limited number of units available for investment. Interested investors may apply and open an ASM account either through an ASNB agent or myASNB portal.

Why buy into ASM

Unlike conventional unit trust funds, Amanah Saham Malaysia (ASM) does not experience price fluctuations, making it a low-risk investment for Malaysians seeking stable returns. Its government-backed structure provides additional security, making it an attractive choice for both beginners and seasoned investors looking for long-term financial stability.

Key features of ASM

ASM is structured as a mixed-asset income fund, offering a fixed unit price of RM1 per unit, ensuring capital protection. It is managed by Amanah Saham Nasional Berhad (ASNB) and overseen by AmanahRaya Trustees Berhad, reinforcing its credibility as a safe and stable investment vehicle. The financial year for ASM ends on March 31 annually.

• Fund Type: Mixed Asset / Income Fund
• Fund Price: Fixed at RM1 per unit
• Investment Manager: Amanah Saham Nasional Berhad (ASNB)
• Trustee: AmanahRaya Trustees Berhad
• Financial Year End: 31 March

ASM investment strategy & asset allocation

ASM follows a diversified investment approach, balancing risk and returns to maintain stable growth. The fund’s asset allocation is designed to optimise returns while managing exposure to market risks.

The investment strategy involves allocating up to 90% of the fund into equities (stocks), allowing for long-term capital growth. Additionally, up to 50% can be invested in other asset classes, such as fixed income and alternative investments, to provide balance. At least 5% of the fund is kept in cash or liquid assets, ensuring flexibility in meeting liquidity needs.

ASM’s dividend policy is based on income distribution, with dividends paid out annually depending on the fund’s performance and subject to trustee approval. ASM’s benchmark performance is measured against the 12-month Maybank Fixed Deposit rate, ensuring that it offers competitive returns compared to traditional fixed deposits.

ASM fees & charges

One of ASM’s key advantages is its low-cost structure, ensuring maximum returns for investors. There are no sales or redemption fees, allowing investors to buy and sell units without extra costs.

The management fee is set at 1.0% per annum, calculated daily. The trustee fee is either RM650,000 or 0.08% per annum, whichever is lower. These fees are significantly lower compared to those of many other unit trust funds, making ASM a cost-effective investment choice.

ASM eligibility

ASM is available to all Malaysian citizens aged 18 and above. Additionally, guardians can invest on behalf of minors below 18 years old, provided the child has a valid birth certificate. 

This inclusive investment eligibility allows Malaysians of all ages to build wealth through ASM’s low-risk, stable return structure.

Minimum investment requirements

ASM has a low entry barrier, making it accessible to a wide range of investors. The initial investment starts at RM10, with additional investments as low as RM1. There is no maximum investment limit, but investors must secure available units before making additional purchases.

• Initial Investment: RM10
• Additional Investment: RM1
• Maximum Investment: No limit (subject to available units)

Increased funding size

On May 31, 2023, ASM’s funding size was increased by RM5 billion. This expansion was aimed at encouraging Malaysians to develop stronger financial habits while providing greater opportunities for ASM to be utilized as a long-term savings vehicle. The increase in funding reflects ASM’s growing demand and government support for stable investment options in Malaysia.

Investment cap & recent changes

Between May 1 and July 31, 2023, ASM introduced a temporary investment cap to regulate demand. During this period, investors could only add up to RM100,000 in additional investments. Withdrawals during this time did not reset the limit, and switch-in or transfer transactions were not allowed.

However, from August 2023 onwards, this investment cap was completely removed, allowing unlimited additional investments based on unit availability. This major policy shift opened new opportunities for investors looking to expand their ASM holdings, making it easier for them to grow their investment portfolios without prior limitations.

How to Start Investing in ASM?

To start investing in Amanah Saham Malaysia (ASM), follow these detailed steps:

1. Check eligibility

Before anything, ensure you are eligible to invest in ASM. ASM is open to all Malaysians, regardless of race or religion, unlike Amanah Saham Bumiputera (ASB), which is restricted to Bumiputeras. If you’re a non-Bumiputera and interested in a low-risk, fixed-price unit trust fund, ASM could be a great option.

2. Visit an ASNB branch or authorised agents

To begin, visit any Amanah Saham Nasional Berhad (ASNB) branch or an authorised agent such as Maybank, CIMB, RHB, Bank Simpanan Nasional (BSN), or Affin Bank. You can also go to Pos Malaysia, which acts as a non-bank agent. These agents can assist you in opening an ASM account and managing your investments. Be sure to bring along identification documents like your MyKad (Identification Card) and other necessary paperwork for verification.

3. Open an ASM account

Once at the branch or agent, you'll need to fill out the necessary forms to open an ASM account. You can also open your account online using the myASNB portal or the myASNB mobile app. This digital option simplifies the process, requiring just your personal details, IC, and supporting documents for verification. ASM investments are fixed-price unit trust funds, which means units are sold at RM1 each, with no sales or redemption charges.

4. Make your initial investment

After successfully setting up your ASM account, you need to make an initial investment. The minimum starting investment is usually RM10, which makes ASM accessible to almost everyone. You can deposit this amount at the branch, through an authorised agent, or using online banking platforms linked to your myASNB account.

5. Monitor and manage your Iivestments

Once your account is active, you can start growing your portfolio by making regular contributions. You can manage your investments through the myASNB mobile app or the online platform, which gives you full access to your portfolio, investment history, and account balance. If you prefer in-person transactions, you can also visit an ASNB branch or authorised agents to top up your account.

6. Understand the investment limits

After October 2023, ASM no longer has an investment limit, making it an even more attractive prospect for non-Bumiputeras in Malaysia. This change allows investors to allocate as much capital as they desire into a trusted and stable fund without worrying about reaching a cap. However, the amount that can be invested is subjected to availability of units of the fund. 

For non-Bumis seeking a safe and consistent investment vehicle, ASM’s removal of limits provides an unparalleled opportunity to grow their wealth. Coupled with its reputation for delivering steady returns and being managed by the reputable Permodalan Nasional Berhad (PNB), ASM now stands as a compelling option for those aiming to diversify their portfolio and secure financial stability over the long term.

7. Reinvest your dividends

Dividends are typically declared annually, and investors are encouraged to reinvest their dividends for compounding growth. By reinvesting your earnings, your portfolio will grow faster, allowing for greater potential dividends in the future.

ASM dividend distribution trend

Amanah Saham Malaysia (ASM) has built a reputation for consistent and stable dividend payouts, making it a preferred choice for long-term investors. Reviewing ASM’s dividend history provides insight into its financial strength and resilience across different market conditions. Let’s look into the dividend trend:

Despite experiencing a decline in 2019, where dividends hit their lowest at 4.25 sen, ASM demonstrated its ability to recover, increasing its dividend payouts in 2023 and 2024. This recovery highlights ASM’s resilience, positioning it as a strong performer compared to other low-risk, long-term investment options in Malaysia.

While ASM has a track record of stability, some investors may still have concerns about its future performance. These concerns typically arise due to market fluctuations, economic uncertainties, and the performance of the companies within ASM’s diversified portfolio. Given the unpredictable nature of the economy, investors often question whether ASM can continue delivering stable returns, especially during volatile periods.

However, it is essential to recognise that ASM operates as a mixed equity portfolio, meaning its investments are spread across multiple industries and sectors. This diversification helps cushion market risks, as ASM’s performance is not tied to a single company or sector. Instead, it is influenced by the overall performance of its underlying investments.

Companies driving ASM’s performance

To better understand ASM’s potential future returns, investors should look at the companies it has invested in. The following are ASM’s top holdings, representing a significant portion of its Net Asset Value (NAV):

To read ASM's full report, click here.

ASM 2 Wawasan and ASM 3: Alternatives to ASM for long-term growth

While Amanah Saham Malaysia (ASM) remains one of the most sought-after fixed-price funds, its high demand often makes it difficult for investors to secure units. To provide more opportunities for Malaysians to benefit from stable, low-risk investments, Amanah Saham Malaysia 2 Wawasan (ASM 2 Wawasan) and Amanah Saham Malaysia 3 (ASM 3) were introduced. These funds operate with the same fixed-price structure, ensuring capital protection and consistent returns, making them strong alternatives to ASM.

ASM 2 Wawasan and ASM 3 follow the same mixed asset and income fund model, focusing on capital stability and steady dividend distributions. Both funds allocate up to 90% of their portfolio to equities, with additional investments in fixed income and other asset classes. At least 5% is maintained in cash or liquid assets, ensuring liquidity and flexibility in market downturns.

Like ASM, both funds are managed by Amanah Saham Nasional Berhad (ASNB) and overseen by AmanahRaya Trustees Berhad (ART). Investors benefit from the same low-risk structure and government-backed security, reinforcing their reliability as long-term investment options.

Key differences between ASM, ASM 2 Wawasan, and ASM 3

Despite their similarities, each fund has its own distinct characteristics. ASM 2 Wawasan, launched in 1996, is designed to provide regular income distributions, making it ideal for those seeking consistent payouts. ASM 3, introduced in 2009, balances income generation with capital preservation, appealing to investors looking for steady returns while maintaining their principal over the long term.

One notable difference lies in their financial year-end dates, which can impact dividend distribution timing. ASM closes on March 31, ASM 2 Wawasan on August 31, and ASM 3 on September 30. This difference in financial year-end dates allows investors to strategically spread their dividend income, improving cash flow management.

Additionally, their trustee fees vary. ASM 2 Wawasan has a fixed trustee fee of RM750,000 per annum, while ASM 3’s trustee fee is calculated at up to 0.08% per annum of the Value of Fund (VOF), with a minimum of RM18,000.

Why choose ASM 2 Wawasan or ASM 3 when ASM exists?

With ASM already offering stable, long-term returns, some investors may wonder why they should consider ASM 2 Wawasan or ASM 3. One of the biggest reasons is unit availability. ASM units often sell out quickly, leaving many investors unable to secure their preferred allocation. ASM 2 Wawasan and ASM 3 provide additional avenues to invest in the same structured funds, ensuring that more Malaysians can access low-risk, fixed-price investments.

Additionally, the different financial year-ends across the three funds allow investors to spread out dividend income throughout the year, making it easier to manage cash flow. ASM 2 Wawasan, with its focus on regular distributions, may be more appealing to those seeking frequent income payouts, while ASM 3’s capital preservation strategy caters to investors who want consistent returns without risking principal loss.

For those looking to diversify their holdings within the Amanah Saham fund family, investing across multiple funds provides greater flexibility and enhanced portfolio stability, all while benefiting from government-backed security and fixed-price advantages.

Financing options: EPF investment and salary deduction schemes

Investing in Amanah Saham Malaysia (ASM), ASM 2 Wawasan, and ASM 3 can be done through multiple channels, including direct cash investments. However, for investors who prefer structured or automated contributions, two key financing options are available:

1. EPF Members' Investment Scheme – Allows eligible Employees Provident Fund (EPF) members to invest in ASNB unit trusts.
2. Salary Deduction Scheme – Enables employees from both the public and private sectors to allocate a portion of their salary toward ASM investments.

These financing options provide an easier way for investors to grow their ASM holdings without requiring lump sum contributions.

What is EPF Members' Investment Scheme (EPF-MIS)

The EPF Members' Investment Scheme (EPF-MIS) allows EPF contributors to allocate part of their retirement savings into ASNB unit trust funds, including fixed-price funds like ASM 3 and ASM 2 Wawasan. This scheme is open to registered EPF unit holders aged 18 and above (Akaun Dewasa) and is subject to EPF’s terms and conditions.

How to Apply for EPF-MIS

There are two methods to apply:

1. Manual application (Using EPF 9N (AHL) Form)

Applicants must complete the KWSP 9N(AHL) form and submit it along with the following documents:

• Completed EPF Members' Investment Withdrawal Application Form – EPF 9N (AHL)
• Latest EPF Account Statement
• Original and a copy of the applicant’s identification card (front and back on a single A4 sheet)

Where to apply?

• ASNB Main Counter in Kuala Lumpur
• ASNB branches
• ASNB Agents (except Pos Malaysia and Maybank)

2. Online application via EPF i-Invest

For a faster and more convenient method, investors can apply through EPF i-Invest, which allows members to use their EPF savings to invest in ASM funds digitally.

• Register as an i-Invest Member on the EPF website
• Link a mobile phone number for TAC authentication

EPF withdrawal for ASM investments

Once invested, EPF contributions used for ASM unit purchases can be withdrawn under the following schemes:

• Age 55 years withdrawal – Units are transferred to the investor’s ASNB passbook automatically.
• Death withdrawal – Units are transferred to the beneficiary’s ASNB account upon submission of the EPF Release Letter.
• Incapacitation or pensionable employees withdrawal – Eligible for unit transfer based on EPF’s guidelines.

For more details on withdrawal requirements, visit the EPF website (www.kwsp.gov.my) or check with the nearest EPF branch.

EPF-MIS Charges

Salary deduction scheme (Systematic Investment Plan - SIP)

For investors who prefer automated monthly contributions, the Salary Deduction Scheme (SIP) offers a convenient way to increase their ASM investments without needing to visit an ASNB branch. This scheme is available for unit holders who meet ASNB’s eligibility criteria, ensuring a disciplined investment approach.

Eligibility criteria for salary deduction

• The unit holder must have a clean account status with ASNB.
• The applicant must not have reached the maximum investment limit for ASB funds.
• The employer must be registered with ASNB for payroll deductions.

How to apply for salary deduction (for federal public service officers)

Government employees whose salaries are managed by the Accountant General’s Department (JANM) can apply through their department’s payroll unit.

Required documents:

• Federal Public Service Officers Salary Deduction Authorization Form (SPG ASNB)
• Copy of Identification Card (verified by employer/payroll unit)
• Any of the following ASNB documents as proof of investment:
  • Latest Unit Trust Investment Holding Statement
  • Annual Income Distribution Statement
  • Quarterly EPF Members Investment Scheme Statement

Where to apply?

The completed form must be submitted to the employer’s payroll unit, which will process it through the State Accounting Office.

How to apply for salary deduction (for private sector employees)

Private-sector employees can participate in the Salary Deduction Scheme if their employer is registered with ASNB.

Required documents:

• Salary Deduction Facility Form (PPS-SPG)
• Verification from employer/payroll unit

Where to apply?

Employees must submit the completed form to their company’s payroll unit, which will process it accordingly.

Salary deduction facility for family members

ASNB also allows salary deductions to be used for family members' ASM investments, provided that the beneficiary has a valid ASNB unit trust account.

Required documents:

• Salary Deduction Facility Form (PPS-SPG)
• Proof of family relationship (e.g., birth certificate, marriage certificate)

Where to apply?

• ASNB Main Counter (Kuala Lumpur) or ASNB branches

Managing salary deduction changes

Unit holders can increase, decrease, or terminate salary deductions by notifying their respective payroll department:

Final thoughts: ASM as a solid investment and the need for diversification

Amanah Saham Malaysia (ASM), along with ASM 2 Wawasan and ASM 3, stands as one of the most stable and reliable investment instruments for Malaysians. With its fixed unit price, consistent dividend payouts, and government-backed security, it provides a low-risk option for those looking to preserve capital while earning steady returns. The various financing options, such as the EPF Members' Investment Scheme (EPF-MIS) and Salary Deduction Scheme (SIP), further enhance accessibility, allowing investors to grow their holdings systematically.

However, while ASM offers stability and predictability, it’s important to recognize that no single investment should be relied on entirely. Markets evolve, economic conditions change, and diversifying your investment portfolio is crucial to maximizing growth while managing risk.

This is where StashAway provides an excellent complement to ASM, offering a broader range of investment opportunities suited to different financial goals. Unlike ASM, which is limited by unit availability, StashAway provides unrestricted access to global financial markets, making it an essential tool for diversification.

Why diversify beyond ASM?

While ASM offers capital security and predictable returns, it is not designed for high growth. Investors seeking better long-term returns should consider diversifying into global equities, alternative assets, and thematic investments. StashAway offers a wide range of portfolios that can complement ASM’s stability with higher-growth opportunities:

• StashAway Simple – A cash management solution offering competitive returns with high liquidity, ideal for parking idle cash while maintaining easy access.
• General Investing – A globally diversified portfolio designed to balance risk and growth, catering to different risk appetites.
• Bitcoin ETF – Exposure to Bitcoin through ETFs, allowing investors to participate in digital asset growth without the complexities of direct cryptocurrency holdings.
• Passive Income Portfolio, Thematic Investing, and More – StashAway also provides tailored solutions for long-term wealth accumulation, sector-focused investments, and retirement planning.

Building a well-rounded investment portfolio

A strong investment strategy should include a mix of safe, stable assets like ASM and higher-growth, globally diversified investments. By combining ASM’s security and fixed income structure with StashAway’s data-driven, globally diversified portfolios, investors can:

1. Protect capital with ASM’s low-risk, fixed-price structure.
2. Achieve steady income through ASM’s consistent dividend payouts.
3. Capture higher growth potential by investing in global markets, equities, and digital assets through StashAway.
4. Maintain liquidity with cash management solutions like StashAway Simple.
5. Adapt to market changes with a flexible and diversified portfolio.

Conclusion

ASM remains a cornerstone investment for Malaysians looking for stability and passive income. However, for those seeking greater wealth accumulation, inflation protection, and long-term growth, diversification is essential. By incorporating platforms like StashAway, investors can build a resilient portfolio that balances stability, growth, and global exposure—ensuring that their investments are well-positioned for the future.