Bonds/Sukuk are debt securities whereby when you purchase a bond, you are lending money to the issuer. In return for the money invested, the issuer will pay you a specified rate of interest (a.k.a coupon) and repays the principal amount or par value upon maturity or when the bond is called.
Bonds/Sukuk in Ringgit and foreign currencies are available at Maybank Premier Wealth Centres & Lounge.
- Receive periodic coupon payments at a pre-determined rate and period, and the par value upon maturity or when the bond is called by the issuer.
- Can be traded (buy or sell) prior to the maturity date, provided a counterparty is found at the best effort basis of the Bank.
- Minimum investment amount: (depending on respective bond papers)
MYR Bond: MYR250,000
USD Bond: USD100,000
AUD Bond: AUD250,000
SGD Bond: SGD250,000
IDR Bond: IDR500million
- Portfolio Diversification - “Don’t put your eggs in one basket”. Bonds can help reduce volatility and preserve capital for equity investors during the times when the stock market is falling.
- Predictable Income Stream – Bonds pay a fixed coupon payment at regular intervals on pre-determined dates, provided there are no default.
- Hedge against economic slowdown – An economic slowdown is typically bad for corporate profits and stock returns, adding to the attractiveness of bond income as a source of return.
- Capital Appreciation – Selling bonds after they have risen in price; bondholders can realise capital appreciation on the bonds they invested.
- Potential higher return than Fixed Deposit
- Stability – Bonds are generally less volatile than equities and therefore considered as conservative investment.
- Option to diversify portfolio on foreign currencies investment, if investing in foreign currencies’ bond.
Fees & Charges
- No upfront service charge
- No subscription fee
- No redemption fee
Individual customers with total net personal assets exceeding Ringgit Malaysia Three Million (RM3,000,000) or its equivalent in foreign currency, or companies with total net assets exceeding Ringgit Malaysia Ten Million (RM10,000,000) or its equivalent in foreign currency, based on the last audited accounts.
Main Characteristics of Bond
|Par Value|| :||Also called principal amount. The amount to be paid back to bondholder at maturity.|
|Coupon|| :||The periodic payment made by the issuer to bondholders.|
|Maturity Date|| :||The date of which a bond matures / expires.|
|Call Date|| :||The date of which the issuer has the right to redeem the bond prior to maturity.|
For more information please contact your Relationship Manager or visit any of our branches.