Rakuten Trade Launches Raku-Invest To Automate and Simplify Investing

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Raku-Invest

Rakuten Trade Sdn Bhd (Rakuten Trade)has just announced the launch of their new service, Raku-Invest. This new platform is designed specifically to simplify and regularise investing.

Lower barriers for Malaysians to enter investments

“Raku-Invest is about enabling and democratizing access to the US equity markets. With the US stock market capitalization representing about 40% of the total global stock market capitalization, it’s a significant and potentially lucrative market for investors. However, the barriers to entry for Malaysians can be challenging,” said Rakuten Trade CEO, Kazumasa Mise.

“Raku-Invest is a localised version drawing from the success of “Tsumitate Investing” offered by Rakuten Securities, Inc (RSec) in Japan. It has performed incredibly well in Japan appealing to young, beginner investors and we hope it will do the same in Malaysia,” added Mise.

What is Tsumitate Investing?

Tsumitate Investing, which originates from Japan, is a kind of investment strategy that involves regularly investing small amounts of money over time instead of a lump sum. The goal of said strategy is to reduce the impact of market volatility on investments.

Investors can initiate automated recurring trades for US shares, American Depositary Receipts (ADRs), and ETFs from RM100. It will automatically continue to trade at pre-selected scheduled periods – either weekly or monthly – without human intervention.

According to an example provided by Rakuten Trade states that investors can schedule their Raku-Invest purchase of Advance Micro Devices (AMD) shares monthly, starting today with an initial investment of RM100. If you had invested in AMD consistently for the last six months, the accumulated shares would now be worth almost 30% more.

How to schedule purchased on Raku-Invest

Setting up a Raku-Invest schedule is easy. Simply:

  1. Log onto your iSPEED.my app and choose the US stock you want to trade
  2. Click “Action” > “Schedule Buy” > Select the “frequency (either weekly or monthly) and the Ringgit amount you want to trade (minimum of RM100)
  3. Click “Confirm” and you’re all set!

For Malaysians, Raku-Invest offers an innovative approach to investing that is particularly beneficial for first-time traders who are looking to enter the US markets. It supports a Dollar Cost Averaging investment strategy, promoting the concept of “Accumulated Investing” for novice investors. It also removes emotional and impulse investments and instead promotes disciplined investing by committing to a regular trading schedule. This focus on long-term goals, despite market fluctuations, helps to mitigate the impact of market volatility and reduces the risk of investing a large sum of money at an inopportune time.

Impressive growth using Tsumitate Investing strategy

According to Rakuten Trade, the Tsumitate Investing strategy has resulted in impressive growth primarily amongst novice traders and continues to record robust performance across several key indicators, reflecting the sustained interest and participation in the market.

As at 30 May 2024, almost 20% of all RSec U.S. equity traders trade via Tsumitate Investing reflecting a continued incremental growth of almost 5% MoM of which more than 12% are first time US investors. 

“Raku-Invest is poised to empower Malaysians with the tools and knowledge needed to build wealth intelligently and securely,” said Mise.

As of the time of launching, over 1,200 US shares will be tradeable for Raku-Invest services, with plans for expansion in the future.

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