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Amateur investors also face obstacles when they are looking for unit trust funds to fulfil their risk appetite. Subsequently, they find it challenging to analyse unit trust funds’ performance, and usually, their findings are inconclusive and indecisive. Thus, they cannot carry out a thorough analysis to extract meaningful information or knowledge from the annual reports they read. As a result, they cannot screen and perform in-depth analysis on many unit trust funds.Īnother typically encountered problem is the low financial literacy among amateur investors.

Most amateur investors are usually busy with their full-time jobs or running their own business. The task requires much time and effort to complete, looking at the abundance of data to be searched and analysed. Reported that Malaysia’s total launched unit trust funds are 685.Īmateur investors always find it challenging to identify appropriate unit trust funds that meet their investment strategies and risks. As of December 2019, the Security Commission of Malaysia ( However, it is not easy to choose suitable unit trust funds that meet the investor’s requirements, especially from a large pool of unit trust funds available in Malaysia. Hence an amateur needs to pick the suitable funds to be included in their portfolio. Each unit trust fund has its investment objective and strategy. Unit trusts are investment options with lower riskĢ than equities because they are well-diversified financial instruments that fund managers handle. Bursa Malaysia recorded a 36% rise in the new Central Depository System (CDS) account holders aged below 25 in 2016, totalling more than 25.2 thousand account holders at the end of this year.ġ Recently, the fast-growing trend has driven more financial products to be brought to the market to attract investors. Youngsters nowadays are more aware of the importance of earning passive income from investment. The common securities include stocks, bonds, deposits, properties, unit trusts and commodities. In Malaysia, different investment securities or schemes are publicly available to investors. This valuable information is crucial to unit trust investors for selecting suitable funds in investment. The evaluation results indicated that the profiling could provide valuable and insightful information to retail investors with varying risk appetites.Ĭonclusions: This research has demonstrated that the financial performance profiling of unit trust funds could be acquired via data mining approaches. Results: The yearly average total return of the financial year 2018 and 2019 was used to evaluate unit trust funds’ performance in the clusters. Retail investors can then select their preferred unit trust funds based on the performance profile of the clusters. The resulted rules shall serve the purpose of profiling the clustered unit trust funds. EM clustered the unit trust funds in Malaysia into several groups based on their annual financial performances. This was then followed by finding the rules associated with each cluster by applying Apriori.

Methods: This research proposed a performance profiling on Malaysia unit trust funds using the two data mining techniques, i.e., Expectation Maximisation (EM) and Apriori, to assist amateur retail investors to choose the right unit trust based on their risk tolerance. The primary objective of this research is to identify unit trust funds that provide higher returns than their average peers via performance profiling. Furthermore, it is not easy to compile the performance of each unit trust available in Malaysia.

However, analysing unit trusts’ financial data and gaining valuable insights may not be as simple because not everyone has the required financial knowledge and adequate time to perform in-depth analytics on the numerous financial data. One popular investment avenue is unit trusts. Background: Millennials are exposed to many investment opportunities, and they have shown their interest in gaining more income via investments.