Looking for a fixed deposit alternative that pays a regular income? The Tradeview Funding Societies Income Fund (TFSIF) is a wholesale SME income fund that has made 11 consecutive monthly distributions. It is not a deposit and is not guaranteed. It is open only to sophisticated investors, with a minimum investment of RM10,000.
Many sophisticated investors are asking the same question: where can spare cash earn a regular return without relying on equity markets? For those looking for an alternative to fixed deposit, a bond fund alternative, or a way to diversify beyond stocks, an SME income fund that pays monthly distributions is worth a closer look.
The Tradeview Funding Societies Income Fund (TFSIF) turns one on 16 October. While many fixed income funds have been shaken by swings in global interest rates, TFSIF has kept to its mandate as a monthly income fund built on SME financing.
TFSIF year one: 11 monthly income distributions
A track record is the first thing experienced investors look for in a regular income investment. Here is TFSIF’s so far:
- 11 consecutive monthly distributions of 0.50 cents per unit, equivalent to 6% p.a. annualised
- Unit price held at RM1.00 throughout
- Fund size of more than RM30 million, diversified across Funding Societies investment notes
- Your choice of monthly cash payout or reinvestment, so the fund can work as passive income investment or compound over time
How TFSIF protects capital: guarantees, security and a first-loss reserve
Income only matters if capital preservation is taken seriously. TFSIF’s portfolio is built with several layers of protection*:
- 75.5% of the portfolio is CGC-guaranteed, vehicle- or property-secured, or backed by government vendor payment assignment
- Property-backed notes carry conservative loan-to-value ratios of 30% to 70%
- Vehicle-backed dealer financing is short-term, with an average repayment period of under 90 days
- A Credit Enhancement Reserve acts as the first loss to protect principal and returns. It has not been drawn on to date, as portfolio returns have comfortably covered credit and fund costs
*As of 30 September 2026.
Short-dated fixed income: how TFSIF limits interest rate risk
Over 85% of the underlying notes mature within 365 days. This short duration allows us to adjust underwriting criteria and pricing as economic conditions change, as maturing balances are replaced with newly originated financing. For an SME income fund, that flexibility matters. The notes carry fixed rates rather than floating rates, and are not marked to market, which suits short-term financing.
Fixed deposit vs bond fund vs SME income fund
Most investors weigh any regular income investment against two familiar benchmarks: the fixed deposit and the bond fund. They are built for different jobs, so the comparison is about trade-offs, not a winner.
| Fixed deposit | Bond fund | TFSIF | |
|---|---|---|---|
| Income | Interest at a rate set by the bank for the term | Distributions that vary with the bonds held | Monthly distributions: 0.50 cents per unit for 11 months |
| Capital | Principal fixed by contract; deposits are PIDM-protected up to the statutory limit | Unit price moves with interest rates and credit spreads | Unit price held at RM1.00 to date. Not a deposit, not guaranteed, not PIDM-protected, but built with safeguards |
| Interest rate risk | None during the term | Can be significant, especially for longer duration funds | Short-dated: over 85% of notes mature within 365 days. Fixed rate (not floating) and not marked to market, given the short-term financing |
| Underlying risk | Bank credit | Government and corporate issuers | SME credit and default risk, mitigated by guarantees, security and a first-loss reserve |
| Liquidity | Early withdrawal may reduce interest earned | Varies by fund | Best for cash not needed for at least 365 days |
A fixed deposit offers certainty of principal that TFSIF cannot match, so it suits money you cannot risk. A bond fund offers broad exposure to government and corporate bonds, but its unit price can swing when rates move. TFSIF sits between the two: as an SME income fund, it targets higher income than a deposit, with short-dated notes designed to limit interest rate risk, and it takes on SME credit risk in exchange. Compare the fund’s 6% p.a. annualised distribution rate with the current rates on offer at your bank and the yield of your bond fund before deciding.
Income with impact: financing Malaysian SMEs
For investors who want impact investing alongside income, TFSIF invests in Funding Societies investment notes that finance Malaysian SMEs. The need is large: the SME financing gap for Malaysian MSMEs is estimated at RM268 billion, with women entrepreneurs, Bumiputera MSMEs and rural businesses often facing the greatest barriers to formal credit. Funding Societies advances financial inclusion by closing part of that gap through a digital platform that assesses creditworthiness using data, cash flow analysis and bank statements.
The platform’s reach to date*:
- Over 10,000 MSMEs served, of which one in two is Bumiputera-owned, one in three is in a non-metropolitan area and one in five operates in agriculture or agrifood
- More than 100,000 loans disbursed, with a total value above RM6.5 billion, of which 40% is Shariah-compliant
- Over 3,500 additional enterprises financed since Khazanah’s investment through Dana Impak
- Strategic investors include Khazanah, Maybank and CGC Digital
ESG is part of how the platform operates. ESG risks are integrated into credit assessment, and Funding Societies | Modalku is a signatory to the UN Global Compact. It has also developed an SME Sustainability Readiness Toolkit to help SMEs go green, and Funding Societies is actively expanding green financing, including through its partnership with the Malaysia Co-Investment Fund (MyCIF), an initiative of the Securities Commission Malaysia and the United Nations Development Programme.
*These are platform-wide figures for Funding Societies, not TFSIF-specific results. Impact outcomes are not guaranteed, and sustainability risk is one of the specific risks disclosed in the Product Highlights Sheet. Source: Funding Societies, Bridging the SME Financing Gap impact brief [confirm as-of date].
11.11 bonus for new investors
To mark TFSIF’s first year, new investors who invest during the campaign period [23 Oct–30 Nov 2026] receive a bonus:
- RM111 for an investment of RM10,000
- RM1,111 for an investment of RM100,000
The bonus is paid in bonus units. Terms and conditions apply.
Who can invest in TFSIF?
The Fund is best for investors with spare cash they do not need for at least 365 days, which lets the Fund perform as intended. It is offered only to sophisticated investors as defined by the Securities Commission Malaysia.
Not a sophisticated investor? Guaranteed Investment Notes start from RM100.
Want to see the numbers for yourself? Read the factsheet and Product Highlights Sheet, then decide whether TFSIF fits your portfolio.
Frequently asked questions
Is TFSIF an alternative to a fixed deposit?
TFSIF is not a deposit. It targets higher income than a fixed deposit, paid monthly, but its principal is not guaranteed or PIDM-protected and it carries SME credit risk. It suits spare cash you do not need for at least 365 days.
How often does TFSIF pay distributions?
Monthly. The Fund has made 11 consecutive distributions of 0.50 cents per unit, which you can take as cash or reinvest. Distributions are not guaranteed.
What is the minimum investment?
RM10,000, with top-ups of the same amount. A sales charge of up to 2.00% applies.
Is TFSIF guaranteed or PIDM-protected?
No. TFSIF is not a deposit and is not guaranteed or PIDM-protected. It is built with safeguards, including guaranteed or secured notes and a Credit Enhancement Reserve that acts as the first loss.
Who qualifies as a sophisticated investor?
As an individual, you generally qualify if you have net personal assets above RM3 million, gross annual income above RM300,000, or a net investment portfolio above RM1 million. Certain professional qualifications or industry experience also count. See the Securities Commission Malaysia’s Guidelines on Categories of Sophisticated Investors for full details.
If you don’t qualify, Guaranteed Investment Notes start from RM100.
Disclaimer: Funding Societies Malaysia is the marketing representative of Tradeview Capital, the Fund’s manager. The Fund is offered only to “sophisticated investors” as defined by the SC. Distributions are not guaranteed, and unit prices and distributions may go down as well as up. Sales charge of up to 2.00% applies. Past performance is not a guide to future performance. Please read the Product Highlights Sheet before investing, including the specific risks: sustainability, counterparty, concentration, credit and default, and regulatory risk.
