Boasting a fund size of 10 billion units, the Amanah Saham 1Malaysia (AS 1Malaysia) is expected to lift the economy from the doldrums and boost the local stock market.

Aimed at those seeking regular and consistent returns, AS 1Malaysia has a reasonably low risk level.

NONE The fund diversifies its portfolio through money market, fixed income securities and equities that include primarily blue chip stocks, high yielding and value shares.

Launched by Prime Minister Najib Abdul Razak today, the new equity fund is expected to boost investment funds as well as provide opportunities for other means of investment.

"Foreign soil will be the 'hinterland' of investments for local companies. We hope that companies under PNB would widen their business activities beyond the borders of this country," he said.

Najib said PNB's "joint venture" with the public through PNB investment companies has created job opportunities for more than 135,000 people.

"I hope to see an increase in PNB's participation in local business ventures. Emerging companies should allow PNB to invest and hold more shares for they are able to yield high returns," he said.

This will now see Permodalan Nasional Berhad (PNB), the government's investment vehicle arm, managing more than RM100 billion worth of funds.

Significant milestone

More than 50,000 first year local university students are set to receive 100 units of AS 1Malaysia each for free.

However, allocation of the equity fund according to race remains, with 50 percent allotted to bumiputeras, 30 percent to Chinese, 15 percent to Indians and five percent to other races.

Supposedly the biggest ever fund offered by PNB, AS 1Malaysia is targeting those seeking regular returns for medium to long-term investments.

Najib said it is a "significant milestone" for PNB in managing larger funds, equivalent to international investment firms.

AS 1Malaysia is opened for public subscription from Aug 5 till Sept 3 for those between 18 to 55 years old. During the 30-day offer period, a maximum investment limit of 50,000 units and no sales charges will be imposed.

After the period, there is no limit to the amount of investment.