<\/span>What is a robo advisor? <\/strong><\/span><\/h2>\nA robo advisor is a digital platform that uses algorithms to automate your investment portfolio. It automatically creates a portfolio for you based on your investing goals and risk tolerance, and periodically rebalance your portfolio.<\/p>\n
Typically, a robo advisor uses your money to invest in exchange-traded funds<\/a> (ETFs), which are groups of stocks, bonds or other investments.<\/p>\nBut each robo advisor implements a different investing methodology \u2013 the underlying investments and allocation of your portfolio will differ based on the robo advisor platform you invest in.<\/p>\n
<\/span>What are the advantages of investing with a robo advisor?<\/strong><\/span><\/h2>\n\n- Passive investing. <\/strong>If you\u2019re not comfortable making investment decisions on your own, or you don\u2019t want to (or can\u2019t) spend a lot of time researching, monitoring and rebalancing your portfolio, then robo advisors could be a good alternative.<\/li>\n
- Diversification.<\/strong> Being diversified (i.e. having many types of investments versus just one type) helps you spread your risk. This means that if a particular investment in your portfolio performs badly, you won\u2019t be greatly affected as you have other types of investments.<\/li>\n
- Avoid emotion-based investing.<\/strong> Some investors panic and withdraw their money in a downturn or pump in more cash when the market is rising. But timing the market is incredibly hard and can lead to smaller returns in the long run. With a robo advisor, you can take a ringgit cost averaging<\/a> approach by investing a fixed amount every month, avoiding emotion-driven impulses to buy and sell based on market sentiment.<\/li>\n
- Low fees.<\/strong> Robo advisors charge low management fees that are typically below 1% a year.. By contrast, if you invest in unit trust funds you may need to fork out 0.5% to 2.5% per annum. Some unit trust funds also charge up to 5% upfront in sales charge, and another 5% when you redeem your investment value.<\/li>\n<\/ul>\n
<\/span>What are the drawbacks of investing with a robo advisor?<\/strong><\/span><\/h2>\n\n- Limited customisation. <\/strong>Robo advisors allow you to set certain things like your risk profile or investing goals, but that\u2019s about it. You generally can\u2019t tinker with the investment methodology, choose (or exclude) individual investments in your portfolio or adjust your exposure towards certain geographical regions.<\/li>\n
- Non-transparent investing methodology. <\/strong>If you\u2019re a savvy investor, you may be interested in the specific criteria a robo advisor uses to select ETFs, or how a robo advisor chooses to rebalance your portfolio. However, this information is not always made available.<\/li>\n
- Dividend withholding tax.<\/strong> Some robo advisors invest heavily in securities listed in the US. However, as a foreign person buying US stocks, your dividends will be subject to a 30% withholding tax, although your robo advisor platform may be able to seek partial reimbursement of these taxes for you.<\/li>\n<\/ul>\nRead more: <\/strong>A Beginner\u2019s Guide To Robo Advisors In Malaysia<\/strong><\/a><\/div><\/div>\n
<\/span>What robo advisor platforms are there in Malaysia?<\/strong><\/span><\/h2>\nWhile they\u2019ve been around since 2008, the first robo advisor launched in Malaysia only three years ago. Singapore-based StashAway<\/a> launched in 2018, while MyTHEO<\/a> and Wahed Invest<\/a> entered the market a year later. In addition, we now have other players: homegrown robo advisor Akru<\/a>, Bank Islam Malaysia\u2019s BEST Invest<\/a>, Kenanga Investment Bank\u2019s KDI Invest<\/a> and Raiz<\/a>.<\/p>\nHere\u2019s how these robo advisors compare against each other at a glance:
\n\n
\n\n\n\tPlatform<\/th> Launched<\/th> Methodology<\/th> Min initial investment<\/th> Annual fees<\/th>\n<\/tr>\n<\/thead>\n \n\n\tAkru<\/td> 2020<\/td> Invest in an intelligent portfolio of diversified global low-cost ETFs<\/td> RM0<\/td> 0.2% to 0.7%<\/td>\n<\/tr>\n \n\tBEST Invest<\/td> 2020<\/td> Applies robo-intelligence and big data technology to suggest a portfolio of diversified Shariah-compliant unit trust investments<\/td> RM10<\/td> 0.5% to 1.8%<\/td>\n<\/tr>\n \n\tKDI Invest<\/td> 2022<\/td> It allows for AI-assisted investment in a range of selected ETFs listed in the US which aligns with user preferences<\/td> RM0<\/td> 0.3%-0.7% for investments above RM3000<\/td>\n<\/tr>\n \n\tMyTHEO<\/td> 2019<\/td> Uses proprietary algorithms to create functional portfolios that incorporate risk-based investing and \u201csmart beta\u201d<\/td> RM100<\/td> 0.5% - 1%<\/td>\n<\/tr>\n \n\tRaiz<\/td> 2020<\/td> Uses algorithms to determine your risk profile to construct a portfolio of Amanah Saham Nasional Berhad (ASNB)\u2019s unit trust funds<\/td> RM5<\/td> RM1.5 a month (under RM6,000) or 0.3% (RM6,000+)<\/td>\n<\/tr>\n \n\tStashAway<\/td> 2018<\/td> Uses proprietary investment strategy that reacts to economic fundamentals<\/td> RM0<\/td> 0.2% - 0.8%<\/td>\n<\/tr>\n \n\tWahed Invest<\/td> 2019<\/td> Optimises the investor's portfolio with Shariah-compliant investments using modern portfolio theory<\/td> RM100<\/td> 0.39% - 0.79%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<\/span>Comparison of robo advisor fees<\/strong><\/span><\/h2>\n\n
\n\n\n\tRobo advisor<\/th> Annual fees<\/th> Annual fund expense<\/th> Currency conversion fee<\/th>\n<\/tr>\n<\/thead>\n \n\n\tAkru<\/td> 0.2% to 0.7%<\/td> ETFs: 0.03% - 0.13%
\nUnit trust: 0.3% - 0.5%<\/td> -<\/td>\n<\/tr>\n \n\tBEST Invest<\/td> -<\/td> 0.5% to 1.8%<\/td> -<\/td>\n<\/tr>\n \n\tKDI Invest<\/td> 0.3%-0.7% for investments above RM3000<\/td> ETFs: 0.2% to 0.4%
\n
\n<\/td> 0.2%<\/td>\n<\/tr>\n \n\tMyTHEO<\/td> 0.5% - 1%<\/td> 0.04% to 0.80%<\/td> 0%<\/td>\n<\/tr>\n \n\tRaiz<\/td> RM1.50 a month (under RM6,000)
\nor 0.3% (RM6,000+)<\/td> 1%<\/td> -<\/td>\n<\/tr>\n \n\tStashAway<\/td> 0.2% - 0.8%<\/td> 0.04% to 0.80%<\/td> 0.08%<\/td>\n<\/tr>\n \n\tWahed Invest<\/td> 0.39% - 0.79%<\/td> 0.50% - 0.92%<\/td> -<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nMost of these robo advisors charge fees according to your portfolio size \u2013 the larger your portfolio, the less fees you pay. BEST Invest is an exception \u2013 its fees are included in the annual management fees of its unit trust fund investments, which do not decrease with your portfolio size.<\/p>\nBesides the fees of the robo advisor itself, there are also fees associated with the underlying investments that make up your portfolio. Robo advisors that invest in unit trust funds incur higher fees, while those that invest in ETFs incur lower fees.<\/p>\n
Although fees can make a huge difference to your portfolio over time, you shouldn\u2019t pick a platform solely on who charges the least. You should also consider how the platform chooses assets to invest in, how it rebalances your portfolio and whether it provides any other services that could improve your returns.<\/p>\n
<\/span>Portfolio allocation<\/strong><\/span><\/h2>\nHere are examples of the most aggressive portfolios of each platform:<\/p>\n
Akru (Portfolio 10)<\/strong><\/h3>\n\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> iShares Core MSCI Emerging Markets ETF<\/td> 10.45%<\/td>\n<\/tr>\n \n\tEquity<\/td> Vanguard 500 Index Fund ETF<\/td> 54.15%<\/td>\n<\/tr>\n \n\tEquity<\/td> iShares Core MSCI EAFE ETF<\/td> 30.40%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total Bond Market Index Fund ETF<\/td> 1.80%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total International Bond Index Fund ETF<\/td> 2.20%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1.00%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n![\"akru](\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2020\/08\/30153353\/akru-asset-allocation.png\")
\nAkru offers ten portfolios, ranging from Portfolio 1 (lowest-risk) to Portfolio 10 (highest-risk). It\u2019s highest-risk portfolio allocates 95% to equities, 4% to bonds and 1% to cash. A major portion (54%) of that is invested in US equities, while 41% is invested in international stocks.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/td> 30%<\/td>\n<\/tr>\n \n\tEquity<\/td> BIMB-Arabesque I Global Dividend Fund 1<\/td> 60%<\/td>\n<\/tr>\n \n\tSukuk<\/td> BIMB ESG Sukuk Fund Class A<\/td> 10%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nBEST Invest invests in five types of unit trust funds \u2013 three equity funds, a sukuk fund and a money market fund. All its investments are Shariah-compliant.<\/p>\nIn 2020, we used Morningstar<\/a> to estimate its geographical allocation:
\n\n
\n\n\n\tRegion<\/th> Allocation<\/strong><\/th>\n<\/tr>\n<\/thead>\n\n\n\tGreater Europe<\/strong><\/td>9.41%<\/strong><\/td>\n<\/tr>\n\n\tUnited Kingdom<\/td> 0.79%<\/td>\n<\/tr>\n \n\tWestern Europe - Euro<\/td> 4.34%<\/td>\n<\/tr>\n \n\tWestern Europe - Non-Euro<\/td> 3.54%<\/td>\n<\/tr>\n \n\tMiddle East \/ Africa<\/td> 0.74%<\/td>\n<\/tr>\n \n\tAmericas<\/strong><\/td>39.99%<\/strong><\/td>\n<\/tr>\n\n\tUnited States<\/td> 37.09%<\/td>\n<\/tr>\n \n\tCanada<\/td> 2.06%<\/td>\n<\/tr>\n \n\tCentral & Latin America<\/td> 0.84%<\/td>\n<\/tr>\n \n\tGreater Asia<\/strong><\/td>50.6%<\/strong><\/td>\n<\/tr>\n\n\tJapan<\/td> 26.8%<\/td>\n<\/tr>\n \n\tAustralasia<\/td> 5.96%<\/td>\n<\/tr>\n \n\tEmerging 4 Tigers<\/td> 8.67%<\/td>\n<\/tr>\n \n\tEmerging Asia - Ex 4 Tigers<\/td> 9.18%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nOver a third of BEST Invest\u2019s aggressive portfolio is invested in the United States, while a quarter is invested in Japan. If you\u2019ve been investing mostly in local securities, this portfolio could help you spread your risk globally.<\/p>\nHowever, it\u2019s worth noting that both the BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/a> and BIMB-Arabesque I Global Dividend Fund 1<\/a> have underperformed benchmarks since their inception. As of June 2021, they had a three-year cumulative performance of -1.09% and 11.96% respectively.<\/p>\nKDI Invest (US Exchange Traded Funds \u2013 US ETFs)<\/h3>\n
KDI\u2019s investment platform is AI driven, needing little to no human involvement in its management. Most robo-advisors in Malaysia right now utilise a mix of AI and input from a fund manager, making KDI\u2019s offering a rather unique one.<\/p>\n
The KDI Invest portfolio invests in ETFs listed on the stock exchanges in the USA. This is mainly because the USA stock exchanges offer the most liquid, deepest and widest range of ETFs covering asset classes across the world, compared to ETFs listed in other countries. This allows investments to get access to global investment trends.<\/p>\n
KDI goes the extra mile to ensure currency conversion costs are as low as possible. Saxo Capital Markets, KDI\u2019s appointed broker, has committed to fixing the cost of currency conversion at 20 basis points (about 0.2% rate) linked the current foreign exchange rate.<\/p>\n
KDI is also completely free for investments below RM3000. For investments above RM3000, clients are charged with a management fee between 0.3%-0.7%. As such, this makes KDI a very accessible option for Malaysians.<\/p>\n
MyTHEO (\u201cGrowth\u201d portfolio)<\/h3>\n
\n
\n\n\n\tETF<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tiShares MSCI Germany ETF (EWG)<\/td> 3.34%<\/td>\n<\/tr>\n \n\tiShares MSCI Hong Kong ETF (EWH)<\/td> 6.57%<\/td>\n<\/tr>\n \n\tiShares MSCI Japan ETF (EWJ)<\/td> 14.76%<\/td>\n<\/tr>\n \n\tiShares MSCI Singapore ETF (EWS)<\/td> 3.84%<\/td>\n<\/tr>\n \n\tiShares MSCI Taiwan ETF (EWT)<\/td> 3.81%<\/td>\n<\/tr>\n \n\tiShares MSCI United Kingdom (EWU)<\/td> 8.27%<\/td>\n<\/tr>\n \n\tiShares MSCI Frontier (FM)<\/td> 4.21%<\/td>\n<\/tr>\n \n\tInvesco QQQ Trust (QQQ)<\/td> 20.96%<\/td>\n<\/tr>\n \n\tiShares MSCI USA ESG Select ETF (SUSA)<\/td> 5.15%<\/td>\n<\/tr>\n \n\tVanguard FTSE Pacific ETF (VPL)<\/td> 9.10%<\/td>\n<\/tr>\n \n\tVanguard Value ETF (VTV)<\/td> 19.84%<\/td>\n<\/tr>\n \n\tCash<\/td> 0.15%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n![\"MYTHEO](\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2020\/08\/30153158\/MYTHEO-asset-allocation-300x244.png\")
MyTHEO\u2019s most aggressive portfolio setting is almost entirely made\u00a0up\u00a0of\u00a0equities.\u00a0Slightly less than half of that (45%) goes to US stocks, while 54% goes to international stocks. Big portions of that are made up of specific regions, such as a 14.76% allocation to Japanese equities and 6.57% to Hong Kong equities.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tMalaysian equities<\/td> ASN Equity 3 Fund<\/td> 80%<\/td>\n<\/tr>\n \n\tMalaysian mixed assets (conservative)<\/td> ASN Sara 1 Fund<\/td> 20%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nRaiz\u2019s highest-risk portfolio is only made up of two unit trust funds from Amanah Saham Nasional Berhad (ASNB) that invest locally. These funds are not considered Shariah-compliant by the Securities Commission of Malaysia, as they invest in Maybank, which is considered a non-Shariah-compliant stock. However, Malaysian Islamic councils consider these funds \u2018harus\u2019 or permissible<\/a>.<\/p>\nAs of July 2021, ASN Equity 3 has a 10-year annualised return of 3.00%, while ASN Sara 1 has an annualised return of 5.17% in the same period.<\/p>\n
Raiz is the only robo advisor that allows you to automatically invest spare change from everyday purchases. Here\u2019s how it works: you link a spending account with Raiz, which will be monitored for transactions. If you make a transaction \u2013 say, RM40.20 for petrol \u2013 Raiz will round up the transaction and invest the RM0.80 difference.<\/p>\n
At the time of writing, Raiz only allows you to connect your Maybank account to invest your spare change, but you can use other bank accounts to fund regular investments.<\/p>\n
StashAway (Highest-risk growth portfolio \u2013 36% Risk Index)<\/h3>\n
\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tInternational equities<\/td> iShares MSCI Australia ETF (EWA)<\/td> 10%<\/td>\n<\/tr>\n \n\tInternational equities<\/td> KraneShares CSI China Internet ETF (KWEB)<\/td> 20%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> iShares Core S&P Small Cap ETF (IJR)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Energy Select Sector SPDR Fund (XLE)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Consumer Stapes Select Sector SPDR Fund (XLP)<\/td> 16%<\/td>\n<\/tr>\n \n\tCorporate Bonds<\/td> iShares Core U.S. Aggregate Bond ETF (AGG)<\/td> 8.5%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard REIT ETF (VNQ)<\/td> 7.7%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard Global ex-U.S. Real Estate Index Fund ETF (VNQI)<\/td> 12.3%<\/td>\n<\/tr>\n \n\tCommodities<\/td> SPDR Gold Trust (GLD)<\/td> 4.5%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nStashAway\u2019s highest-risk portfolio is largely allocated in the US (45.7%), China (20.4%) and Australia (10.8%). Notably, 20% of its portfolio is invested in KraneShares CSI China Internet ETF, which recently plunged amid China\u2019s regulatory crackdown<\/a> on tech companies.<\/p>\n
But each robo advisor implements a different investing methodology \u2013 the underlying investments and allocation of your portfolio will differ based on the robo advisor platform you invest in.<\/p>\n
<\/span>What are the advantages of investing with a robo advisor?<\/strong><\/span><\/h2>\n\n- Passive investing. <\/strong>If you\u2019re not comfortable making investment decisions on your own, or you don\u2019t want to (or can\u2019t) spend a lot of time researching, monitoring and rebalancing your portfolio, then robo advisors could be a good alternative.<\/li>\n
- Diversification.<\/strong> Being diversified (i.e. having many types of investments versus just one type) helps you spread your risk. This means that if a particular investment in your portfolio performs badly, you won\u2019t be greatly affected as you have other types of investments.<\/li>\n
- Avoid emotion-based investing.<\/strong> Some investors panic and withdraw their money in a downturn or pump in more cash when the market is rising. But timing the market is incredibly hard and can lead to smaller returns in the long run. With a robo advisor, you can take a ringgit cost averaging<\/a> approach by investing a fixed amount every month, avoiding emotion-driven impulses to buy and sell based on market sentiment.<\/li>\n
- Low fees.<\/strong> Robo advisors charge low management fees that are typically below 1% a year.. By contrast, if you invest in unit trust funds you may need to fork out 0.5% to 2.5% per annum. Some unit trust funds also charge up to 5% upfront in sales charge, and another 5% when you redeem your investment value.<\/li>\n<\/ul>\n
<\/span>What are the drawbacks of investing with a robo advisor?<\/strong><\/span><\/h2>\n\n- Limited customisation. <\/strong>Robo advisors allow you to set certain things like your risk profile or investing goals, but that\u2019s about it. You generally can\u2019t tinker with the investment methodology, choose (or exclude) individual investments in your portfolio or adjust your exposure towards certain geographical regions.<\/li>\n
- Non-transparent investing methodology. <\/strong>If you\u2019re a savvy investor, you may be interested in the specific criteria a robo advisor uses to select ETFs, or how a robo advisor chooses to rebalance your portfolio. However, this information is not always made available.<\/li>\n
- Dividend withholding tax.<\/strong> Some robo advisors invest heavily in securities listed in the US. However, as a foreign person buying US stocks, your dividends will be subject to a 30% withholding tax, although your robo advisor platform may be able to seek partial reimbursement of these taxes for you.<\/li>\n<\/ul>\nRead more: <\/strong>A Beginner\u2019s Guide To Robo Advisors In Malaysia<\/strong><\/a><\/div><\/div>\n
<\/span>What robo advisor platforms are there in Malaysia?<\/strong><\/span><\/h2>\nWhile they\u2019ve been around since 2008, the first robo advisor launched in Malaysia only three years ago. Singapore-based StashAway<\/a> launched in 2018, while MyTHEO<\/a> and Wahed Invest<\/a> entered the market a year later. In addition, we now have other players: homegrown robo advisor Akru<\/a>, Bank Islam Malaysia\u2019s BEST Invest<\/a>, Kenanga Investment Bank\u2019s KDI Invest<\/a> and Raiz<\/a>.<\/p>\nHere\u2019s how these robo advisors compare against each other at a glance:
\n\n
\n\n\n\tPlatform<\/th> Launched<\/th> Methodology<\/th> Min initial investment<\/th> Annual fees<\/th>\n<\/tr>\n<\/thead>\n \n\n\tAkru<\/td> 2020<\/td> Invest in an intelligent portfolio of diversified global low-cost ETFs<\/td> RM0<\/td> 0.2% to 0.7%<\/td>\n<\/tr>\n \n\tBEST Invest<\/td> 2020<\/td> Applies robo-intelligence and big data technology to suggest a portfolio of diversified Shariah-compliant unit trust investments<\/td> RM10<\/td> 0.5% to 1.8%<\/td>\n<\/tr>\n \n\tKDI Invest<\/td> 2022<\/td> It allows for AI-assisted investment in a range of selected ETFs listed in the US which aligns with user preferences<\/td> RM0<\/td> 0.3%-0.7% for investments above RM3000<\/td>\n<\/tr>\n \n\tMyTHEO<\/td> 2019<\/td> Uses proprietary algorithms to create functional portfolios that incorporate risk-based investing and \u201csmart beta\u201d<\/td> RM100<\/td> 0.5% - 1%<\/td>\n<\/tr>\n \n\tRaiz<\/td> 2020<\/td> Uses algorithms to determine your risk profile to construct a portfolio of Amanah Saham Nasional Berhad (ASNB)\u2019s unit trust funds<\/td> RM5<\/td> RM1.5 a month (under RM6,000) or 0.3% (RM6,000+)<\/td>\n<\/tr>\n \n\tStashAway<\/td> 2018<\/td> Uses proprietary investment strategy that reacts to economic fundamentals<\/td> RM0<\/td> 0.2% - 0.8%<\/td>\n<\/tr>\n \n\tWahed Invest<\/td> 2019<\/td> Optimises the investor's portfolio with Shariah-compliant investments using modern portfolio theory<\/td> RM100<\/td> 0.39% - 0.79%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<\/span>Comparison of robo advisor fees<\/strong><\/span><\/h2>\n\n
\n\n\n\tRobo advisor<\/th> Annual fees<\/th> Annual fund expense<\/th> Currency conversion fee<\/th>\n<\/tr>\n<\/thead>\n \n\n\tAkru<\/td> 0.2% to 0.7%<\/td> ETFs: 0.03% - 0.13%
\nUnit trust: 0.3% - 0.5%<\/td> -<\/td>\n<\/tr>\n \n\tBEST Invest<\/td> -<\/td> 0.5% to 1.8%<\/td> -<\/td>\n<\/tr>\n \n\tKDI Invest<\/td> 0.3%-0.7% for investments above RM3000<\/td> ETFs: 0.2% to 0.4%
\n
\n<\/td> 0.2%<\/td>\n<\/tr>\n \n\tMyTHEO<\/td> 0.5% - 1%<\/td> 0.04% to 0.80%<\/td> 0%<\/td>\n<\/tr>\n \n\tRaiz<\/td> RM1.50 a month (under RM6,000)
\nor 0.3% (RM6,000+)<\/td> 1%<\/td> -<\/td>\n<\/tr>\n \n\tStashAway<\/td> 0.2% - 0.8%<\/td> 0.04% to 0.80%<\/td> 0.08%<\/td>\n<\/tr>\n \n\tWahed Invest<\/td> 0.39% - 0.79%<\/td> 0.50% - 0.92%<\/td> -<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nMost of these robo advisors charge fees according to your portfolio size \u2013 the larger your portfolio, the less fees you pay. BEST Invest is an exception \u2013 its fees are included in the annual management fees of its unit trust fund investments, which do not decrease with your portfolio size.<\/p>\nBesides the fees of the robo advisor itself, there are also fees associated with the underlying investments that make up your portfolio. Robo advisors that invest in unit trust funds incur higher fees, while those that invest in ETFs incur lower fees.<\/p>\n
Although fees can make a huge difference to your portfolio over time, you shouldn\u2019t pick a platform solely on who charges the least. You should also consider how the platform chooses assets to invest in, how it rebalances your portfolio and whether it provides any other services that could improve your returns.<\/p>\n
<\/span>Portfolio allocation<\/strong><\/span><\/h2>\nHere are examples of the most aggressive portfolios of each platform:<\/p>\n
Akru (Portfolio 10)<\/strong><\/h3>\n\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> iShares Core MSCI Emerging Markets ETF<\/td> 10.45%<\/td>\n<\/tr>\n \n\tEquity<\/td> Vanguard 500 Index Fund ETF<\/td> 54.15%<\/td>\n<\/tr>\n \n\tEquity<\/td> iShares Core MSCI EAFE ETF<\/td> 30.40%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total Bond Market Index Fund ETF<\/td> 1.80%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total International Bond Index Fund ETF<\/td> 2.20%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1.00%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nAkru offers ten portfolios, ranging from Portfolio 1 (lowest-risk) to Portfolio 10 (highest-risk). It\u2019s highest-risk portfolio allocates 95% to equities, 4% to bonds and 1% to cash. A major portion (54%) of that is invested in US equities, while 41% is invested in international stocks.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/td> 30%<\/td>\n<\/tr>\n \n\tEquity<\/td> BIMB-Arabesque I Global Dividend Fund 1<\/td> 60%<\/td>\n<\/tr>\n \n\tSukuk<\/td> BIMB ESG Sukuk Fund Class A<\/td> 10%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nBEST Invest invests in five types of unit trust funds \u2013 three equity funds, a sukuk fund and a money market fund. All its investments are Shariah-compliant.<\/p>\nIn 2020, we used Morningstar<\/a> to estimate its geographical allocation:
\n\n
\n\n\n\tRegion<\/th> Allocation<\/strong><\/th>\n<\/tr>\n<\/thead>\n\n\n\tGreater Europe<\/strong><\/td>9.41%<\/strong><\/td>\n<\/tr>\n\n\tUnited Kingdom<\/td> 0.79%<\/td>\n<\/tr>\n \n\tWestern Europe - Euro<\/td> 4.34%<\/td>\n<\/tr>\n \n\tWestern Europe - Non-Euro<\/td> 3.54%<\/td>\n<\/tr>\n \n\tMiddle East \/ Africa<\/td> 0.74%<\/td>\n<\/tr>\n \n\tAmericas<\/strong><\/td>39.99%<\/strong><\/td>\n<\/tr>\n\n\tUnited States<\/td> 37.09%<\/td>\n<\/tr>\n \n\tCanada<\/td> 2.06%<\/td>\n<\/tr>\n \n\tCentral & Latin America<\/td> 0.84%<\/td>\n<\/tr>\n \n\tGreater Asia<\/strong><\/td>50.6%<\/strong><\/td>\n<\/tr>\n\n\tJapan<\/td> 26.8%<\/td>\n<\/tr>\n \n\tAustralasia<\/td> 5.96%<\/td>\n<\/tr>\n \n\tEmerging 4 Tigers<\/td> 8.67%<\/td>\n<\/tr>\n \n\tEmerging Asia - Ex 4 Tigers<\/td> 9.18%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nOver a third of BEST Invest\u2019s aggressive portfolio is invested in the United States, while a quarter is invested in Japan. If you\u2019ve been investing mostly in local securities, this portfolio could help you spread your risk globally.<\/p>\nHowever, it\u2019s worth noting that both the BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/a> and BIMB-Arabesque I Global Dividend Fund 1<\/a> have underperformed benchmarks since their inception. As of June 2021, they had a three-year cumulative performance of -1.09% and 11.96% respectively.<\/p>\nKDI Invest (US Exchange Traded Funds \u2013 US ETFs)<\/h3>\n
KDI\u2019s investment platform is AI driven, needing little to no human involvement in its management. Most robo-advisors in Malaysia right now utilise a mix of AI and input from a fund manager, making KDI\u2019s offering a rather unique one.<\/p>\n
The KDI Invest portfolio invests in ETFs listed on the stock exchanges in the USA. This is mainly because the USA stock exchanges offer the most liquid, deepest and widest range of ETFs covering asset classes across the world, compared to ETFs listed in other countries. This allows investments to get access to global investment trends.<\/p>\n
KDI goes the extra mile to ensure currency conversion costs are as low as possible. Saxo Capital Markets, KDI\u2019s appointed broker, has committed to fixing the cost of currency conversion at 20 basis points (about 0.2% rate) linked the current foreign exchange rate.<\/p>\n
KDI is also completely free for investments below RM3000. For investments above RM3000, clients are charged with a management fee between 0.3%-0.7%. As such, this makes KDI a very accessible option for Malaysians.<\/p>\n
MyTHEO (\u201cGrowth\u201d portfolio)<\/h3>\n
\n
\n\n\n\tETF<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tiShares MSCI Germany ETF (EWG)<\/td> 3.34%<\/td>\n<\/tr>\n \n\tiShares MSCI Hong Kong ETF (EWH)<\/td> 6.57%<\/td>\n<\/tr>\n \n\tiShares MSCI Japan ETF (EWJ)<\/td> 14.76%<\/td>\n<\/tr>\n \n\tiShares MSCI Singapore ETF (EWS)<\/td> 3.84%<\/td>\n<\/tr>\n \n\tiShares MSCI Taiwan ETF (EWT)<\/td> 3.81%<\/td>\n<\/tr>\n \n\tiShares MSCI United Kingdom (EWU)<\/td> 8.27%<\/td>\n<\/tr>\n \n\tiShares MSCI Frontier (FM)<\/td> 4.21%<\/td>\n<\/tr>\n \n\tInvesco QQQ Trust (QQQ)<\/td> 20.96%<\/td>\n<\/tr>\n \n\tiShares MSCI USA ESG Select ETF (SUSA)<\/td> 5.15%<\/td>\n<\/tr>\n \n\tVanguard FTSE Pacific ETF (VPL)<\/td> 9.10%<\/td>\n<\/tr>\n \n\tVanguard Value ETF (VTV)<\/td> 19.84%<\/td>\n<\/tr>\n \n\tCash<\/td> 0.15%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nMyTHEO\u2019s most aggressive portfolio setting is almost entirely made\u00a0up\u00a0of\u00a0equities.\u00a0Slightly less than half of that (45%) goes to US stocks, while 54% goes to international stocks. Big portions of that are made up of specific regions, such as a 14.76% allocation to Japanese equities and 6.57% to Hong Kong equities.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tMalaysian equities<\/td> ASN Equity 3 Fund<\/td> 80%<\/td>\n<\/tr>\n \n\tMalaysian mixed assets (conservative)<\/td> ASN Sara 1 Fund<\/td> 20%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nRaiz\u2019s highest-risk portfolio is only made up of two unit trust funds from Amanah Saham Nasional Berhad (ASNB) that invest locally. These funds are not considered Shariah-compliant by the Securities Commission of Malaysia, as they invest in Maybank, which is considered a non-Shariah-compliant stock. However, Malaysian Islamic councils consider these funds \u2018harus\u2019 or permissible<\/a>.<\/p>\nAs of July 2021, ASN Equity 3 has a 10-year annualised return of 3.00%, while ASN Sara 1 has an annualised return of 5.17% in the same period.<\/p>\n
Raiz is the only robo advisor that allows you to automatically invest spare change from everyday purchases. Here\u2019s how it works: you link a spending account with Raiz, which will be monitored for transactions. If you make a transaction \u2013 say, RM40.20 for petrol \u2013 Raiz will round up the transaction and invest the RM0.80 difference.<\/p>\n
At the time of writing, Raiz only allows you to connect your Maybank account to invest your spare change, but you can use other bank accounts to fund regular investments.<\/p>\n
StashAway (Highest-risk growth portfolio \u2013 36% Risk Index)<\/h3>\n
\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tInternational equities<\/td> iShares MSCI Australia ETF (EWA)<\/td> 10%<\/td>\n<\/tr>\n \n\tInternational equities<\/td> KraneShares CSI China Internet ETF (KWEB)<\/td> 20%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> iShares Core S&P Small Cap ETF (IJR)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Energy Select Sector SPDR Fund (XLE)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Consumer Stapes Select Sector SPDR Fund (XLP)<\/td> 16%<\/td>\n<\/tr>\n \n\tCorporate Bonds<\/td> iShares Core U.S. Aggregate Bond ETF (AGG)<\/td> 8.5%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard REIT ETF (VNQ)<\/td> 7.7%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard Global ex-U.S. Real Estate Index Fund ETF (VNQI)<\/td> 12.3%<\/td>\n<\/tr>\n \n\tCommodities<\/td> SPDR Gold Trust (GLD)<\/td> 4.5%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nStashAway\u2019s highest-risk portfolio is largely allocated in the US (45.7%), China (20.4%) and Australia (10.8%). Notably, 20% of its portfolio is invested in KraneShares CSI China Internet ETF, which recently plunged amid China\u2019s regulatory crackdown<\/a> on tech companies.<\/p>\n
<\/span>What are the drawbacks of investing with a robo advisor?<\/strong><\/span><\/h2>\n\n- Limited customisation. <\/strong>Robo advisors allow you to set certain things like your risk profile or investing goals, but that\u2019s about it. You generally can\u2019t tinker with the investment methodology, choose (or exclude) individual investments in your portfolio or adjust your exposure towards certain geographical regions.<\/li>\n
- Non-transparent investing methodology. <\/strong>If you\u2019re a savvy investor, you may be interested in the specific criteria a robo advisor uses to select ETFs, or how a robo advisor chooses to rebalance your portfolio. However, this information is not always made available.<\/li>\n
- Dividend withholding tax.<\/strong> Some robo advisors invest heavily in securities listed in the US. However, as a foreign person buying US stocks, your dividends will be subject to a 30% withholding tax, although your robo advisor platform may be able to seek partial reimbursement of these taxes for you.<\/li>\n<\/ul>\nRead more: <\/strong>A Beginner\u2019s Guide To Robo Advisors In Malaysia<\/strong><\/a><\/div><\/div>\n
<\/span>What robo advisor platforms are there in Malaysia?<\/strong><\/span><\/h2>\nWhile they\u2019ve been around since 2008, the first robo advisor launched in Malaysia only three years ago. Singapore-based StashAway<\/a> launched in 2018, while MyTHEO<\/a> and Wahed Invest<\/a> entered the market a year later. In addition, we now have other players: homegrown robo advisor Akru<\/a>, Bank Islam Malaysia\u2019s BEST Invest<\/a>, Kenanga Investment Bank\u2019s KDI Invest<\/a> and Raiz<\/a>.<\/p>\nHere\u2019s how these robo advisors compare against each other at a glance:
\n\n
\n\n\n\tPlatform<\/th> Launched<\/th> Methodology<\/th> Min initial investment<\/th> Annual fees<\/th>\n<\/tr>\n<\/thead>\n \n\n\tAkru<\/td> 2020<\/td> Invest in an intelligent portfolio of diversified global low-cost ETFs<\/td> RM0<\/td> 0.2% to 0.7%<\/td>\n<\/tr>\n \n\tBEST Invest<\/td> 2020<\/td> Applies robo-intelligence and big data technology to suggest a portfolio of diversified Shariah-compliant unit trust investments<\/td> RM10<\/td> 0.5% to 1.8%<\/td>\n<\/tr>\n \n\tKDI Invest<\/td> 2022<\/td> It allows for AI-assisted investment in a range of selected ETFs listed in the US which aligns with user preferences<\/td> RM0<\/td> 0.3%-0.7% for investments above RM3000<\/td>\n<\/tr>\n \n\tMyTHEO<\/td> 2019<\/td> Uses proprietary algorithms to create functional portfolios that incorporate risk-based investing and \u201csmart beta\u201d<\/td> RM100<\/td> 0.5% - 1%<\/td>\n<\/tr>\n \n\tRaiz<\/td> 2020<\/td> Uses algorithms to determine your risk profile to construct a portfolio of Amanah Saham Nasional Berhad (ASNB)\u2019s unit trust funds<\/td> RM5<\/td> RM1.5 a month (under RM6,000) or 0.3% (RM6,000+)<\/td>\n<\/tr>\n \n\tStashAway<\/td> 2018<\/td> Uses proprietary investment strategy that reacts to economic fundamentals<\/td> RM0<\/td> 0.2% - 0.8%<\/td>\n<\/tr>\n \n\tWahed Invest<\/td> 2019<\/td> Optimises the investor's portfolio with Shariah-compliant investments using modern portfolio theory<\/td> RM100<\/td> 0.39% - 0.79%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<\/span>Comparison of robo advisor fees<\/strong><\/span><\/h2>\n\n
\n\n\n\tRobo advisor<\/th> Annual fees<\/th> Annual fund expense<\/th> Currency conversion fee<\/th>\n<\/tr>\n<\/thead>\n \n\n\tAkru<\/td> 0.2% to 0.7%<\/td> ETFs: 0.03% - 0.13%
\nUnit trust: 0.3% - 0.5%<\/td> -<\/td>\n<\/tr>\n \n\tBEST Invest<\/td> -<\/td> 0.5% to 1.8%<\/td> -<\/td>\n<\/tr>\n \n\tKDI Invest<\/td> 0.3%-0.7% for investments above RM3000<\/td> ETFs: 0.2% to 0.4%
\n
\n<\/td> 0.2%<\/td>\n<\/tr>\n \n\tMyTHEO<\/td> 0.5% - 1%<\/td> 0.04% to 0.80%<\/td> 0%<\/td>\n<\/tr>\n \n\tRaiz<\/td> RM1.50 a month (under RM6,000)
\nor 0.3% (RM6,000+)<\/td> 1%<\/td> -<\/td>\n<\/tr>\n \n\tStashAway<\/td> 0.2% - 0.8%<\/td> 0.04% to 0.80%<\/td> 0.08%<\/td>\n<\/tr>\n \n\tWahed Invest<\/td> 0.39% - 0.79%<\/td> 0.50% - 0.92%<\/td> -<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nMost of these robo advisors charge fees according to your portfolio size \u2013 the larger your portfolio, the less fees you pay. BEST Invest is an exception \u2013 its fees are included in the annual management fees of its unit trust fund investments, which do not decrease with your portfolio size.<\/p>\nBesides the fees of the robo advisor itself, there are also fees associated with the underlying investments that make up your portfolio. Robo advisors that invest in unit trust funds incur higher fees, while those that invest in ETFs incur lower fees.<\/p>\n
Although fees can make a huge difference to your portfolio over time, you shouldn\u2019t pick a platform solely on who charges the least. You should also consider how the platform chooses assets to invest in, how it rebalances your portfolio and whether it provides any other services that could improve your returns.<\/p>\n
<\/span>Portfolio allocation<\/strong><\/span><\/h2>\nHere are examples of the most aggressive portfolios of each platform:<\/p>\n
Akru (Portfolio 10)<\/strong><\/h3>\n\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> iShares Core MSCI Emerging Markets ETF<\/td> 10.45%<\/td>\n<\/tr>\n \n\tEquity<\/td> Vanguard 500 Index Fund ETF<\/td> 54.15%<\/td>\n<\/tr>\n \n\tEquity<\/td> iShares Core MSCI EAFE ETF<\/td> 30.40%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total Bond Market Index Fund ETF<\/td> 1.80%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total International Bond Index Fund ETF<\/td> 2.20%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1.00%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nAkru offers ten portfolios, ranging from Portfolio 1 (lowest-risk) to Portfolio 10 (highest-risk). It\u2019s highest-risk portfolio allocates 95% to equities, 4% to bonds and 1% to cash. A major portion (54%) of that is invested in US equities, while 41% is invested in international stocks.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/td> 30%<\/td>\n<\/tr>\n \n\tEquity<\/td> BIMB-Arabesque I Global Dividend Fund 1<\/td> 60%<\/td>\n<\/tr>\n \n\tSukuk<\/td> BIMB ESG Sukuk Fund Class A<\/td> 10%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nBEST Invest invests in five types of unit trust funds \u2013 three equity funds, a sukuk fund and a money market fund. All its investments are Shariah-compliant.<\/p>\nIn 2020, we used Morningstar<\/a> to estimate its geographical allocation:
\n\n
\n\n\n\tRegion<\/th> Allocation<\/strong><\/th>\n<\/tr>\n<\/thead>\n\n\n\tGreater Europe<\/strong><\/td>9.41%<\/strong><\/td>\n<\/tr>\n\n\tUnited Kingdom<\/td> 0.79%<\/td>\n<\/tr>\n \n\tWestern Europe - Euro<\/td> 4.34%<\/td>\n<\/tr>\n \n\tWestern Europe - Non-Euro<\/td> 3.54%<\/td>\n<\/tr>\n \n\tMiddle East \/ Africa<\/td> 0.74%<\/td>\n<\/tr>\n \n\tAmericas<\/strong><\/td>39.99%<\/strong><\/td>\n<\/tr>\n\n\tUnited States<\/td> 37.09%<\/td>\n<\/tr>\n \n\tCanada<\/td> 2.06%<\/td>\n<\/tr>\n \n\tCentral & Latin America<\/td> 0.84%<\/td>\n<\/tr>\n \n\tGreater Asia<\/strong><\/td>50.6%<\/strong><\/td>\n<\/tr>\n\n\tJapan<\/td> 26.8%<\/td>\n<\/tr>\n \n\tAustralasia<\/td> 5.96%<\/td>\n<\/tr>\n \n\tEmerging 4 Tigers<\/td> 8.67%<\/td>\n<\/tr>\n \n\tEmerging Asia - Ex 4 Tigers<\/td> 9.18%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nOver a third of BEST Invest\u2019s aggressive portfolio is invested in the United States, while a quarter is invested in Japan. If you\u2019ve been investing mostly in local securities, this portfolio could help you spread your risk globally.<\/p>\nHowever, it\u2019s worth noting that both the BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/a> and BIMB-Arabesque I Global Dividend Fund 1<\/a> have underperformed benchmarks since their inception. As of June 2021, they had a three-year cumulative performance of -1.09% and 11.96% respectively.<\/p>\nKDI Invest (US Exchange Traded Funds \u2013 US ETFs)<\/h3>\n
KDI\u2019s investment platform is AI driven, needing little to no human involvement in its management. Most robo-advisors in Malaysia right now utilise a mix of AI and input from a fund manager, making KDI\u2019s offering a rather unique one.<\/p>\n
The KDI Invest portfolio invests in ETFs listed on the stock exchanges in the USA. This is mainly because the USA stock exchanges offer the most liquid, deepest and widest range of ETFs covering asset classes across the world, compared to ETFs listed in other countries. This allows investments to get access to global investment trends.<\/p>\n
KDI goes the extra mile to ensure currency conversion costs are as low as possible. Saxo Capital Markets, KDI\u2019s appointed broker, has committed to fixing the cost of currency conversion at 20 basis points (about 0.2% rate) linked the current foreign exchange rate.<\/p>\n
KDI is also completely free for investments below RM3000. For investments above RM3000, clients are charged with a management fee between 0.3%-0.7%. As such, this makes KDI a very accessible option for Malaysians.<\/p>\n
MyTHEO (\u201cGrowth\u201d portfolio)<\/h3>\n
\n
\n\n\n\tETF<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tiShares MSCI Germany ETF (EWG)<\/td> 3.34%<\/td>\n<\/tr>\n \n\tiShares MSCI Hong Kong ETF (EWH)<\/td> 6.57%<\/td>\n<\/tr>\n \n\tiShares MSCI Japan ETF (EWJ)<\/td> 14.76%<\/td>\n<\/tr>\n \n\tiShares MSCI Singapore ETF (EWS)<\/td> 3.84%<\/td>\n<\/tr>\n \n\tiShares MSCI Taiwan ETF (EWT)<\/td> 3.81%<\/td>\n<\/tr>\n \n\tiShares MSCI United Kingdom (EWU)<\/td> 8.27%<\/td>\n<\/tr>\n \n\tiShares MSCI Frontier (FM)<\/td> 4.21%<\/td>\n<\/tr>\n \n\tInvesco QQQ Trust (QQQ)<\/td> 20.96%<\/td>\n<\/tr>\n \n\tiShares MSCI USA ESG Select ETF (SUSA)<\/td> 5.15%<\/td>\n<\/tr>\n \n\tVanguard FTSE Pacific ETF (VPL)<\/td> 9.10%<\/td>\n<\/tr>\n \n\tVanguard Value ETF (VTV)<\/td> 19.84%<\/td>\n<\/tr>\n \n\tCash<\/td> 0.15%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nMyTHEO\u2019s most aggressive portfolio setting is almost entirely made\u00a0up\u00a0of\u00a0equities.\u00a0Slightly less than half of that (45%) goes to US stocks, while 54% goes to international stocks. Big portions of that are made up of specific regions, such as a 14.76% allocation to Japanese equities and 6.57% to Hong Kong equities.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tMalaysian equities<\/td> ASN Equity 3 Fund<\/td> 80%<\/td>\n<\/tr>\n \n\tMalaysian mixed assets (conservative)<\/td> ASN Sara 1 Fund<\/td> 20%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nRaiz\u2019s highest-risk portfolio is only made up of two unit trust funds from Amanah Saham Nasional Berhad (ASNB) that invest locally. These funds are not considered Shariah-compliant by the Securities Commission of Malaysia, as they invest in Maybank, which is considered a non-Shariah-compliant stock. However, Malaysian Islamic councils consider these funds \u2018harus\u2019 or permissible<\/a>.<\/p>\nAs of July 2021, ASN Equity 3 has a 10-year annualised return of 3.00%, while ASN Sara 1 has an annualised return of 5.17% in the same period.<\/p>\n
Raiz is the only robo advisor that allows you to automatically invest spare change from everyday purchases. Here\u2019s how it works: you link a spending account with Raiz, which will be monitored for transactions. If you make a transaction \u2013 say, RM40.20 for petrol \u2013 Raiz will round up the transaction and invest the RM0.80 difference.<\/p>\n
At the time of writing, Raiz only allows you to connect your Maybank account to invest your spare change, but you can use other bank accounts to fund regular investments.<\/p>\n
StashAway (Highest-risk growth portfolio \u2013 36% Risk Index)<\/h3>\n
\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tInternational equities<\/td> iShares MSCI Australia ETF (EWA)<\/td> 10%<\/td>\n<\/tr>\n \n\tInternational equities<\/td> KraneShares CSI China Internet ETF (KWEB)<\/td> 20%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> iShares Core S&P Small Cap ETF (IJR)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Energy Select Sector SPDR Fund (XLE)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Consumer Stapes Select Sector SPDR Fund (XLP)<\/td> 16%<\/td>\n<\/tr>\n \n\tCorporate Bonds<\/td> iShares Core U.S. Aggregate Bond ETF (AGG)<\/td> 8.5%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard REIT ETF (VNQ)<\/td> 7.7%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard Global ex-U.S. Real Estate Index Fund ETF (VNQI)<\/td> 12.3%<\/td>\n<\/tr>\n \n\tCommodities<\/td> SPDR Gold Trust (GLD)<\/td> 4.5%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nStashAway\u2019s highest-risk portfolio is largely allocated in the US (45.7%), China (20.4%) and Australia (10.8%). Notably, 20% of its portfolio is invested in KraneShares CSI China Internet ETF, which recently plunged amid China\u2019s regulatory crackdown<\/a> on tech companies.<\/p>\n
<\/span>What robo advisor platforms are there in Malaysia?<\/strong><\/span><\/h2>\nWhile they\u2019ve been around since 2008, the first robo advisor launched in Malaysia only three years ago. Singapore-based StashAway<\/a> launched in 2018, while MyTHEO<\/a> and Wahed Invest<\/a> entered the market a year later. In addition, we now have other players: homegrown robo advisor Akru<\/a>, Bank Islam Malaysia\u2019s BEST Invest<\/a>, Kenanga Investment Bank\u2019s KDI Invest<\/a> and Raiz<\/a>.<\/p>\nHere\u2019s how these robo advisors compare against each other at a glance:
\n\n
\n\n\n\tPlatform<\/th> Launched<\/th> Methodology<\/th> Min initial investment<\/th> Annual fees<\/th>\n<\/tr>\n<\/thead>\n \n\n\tAkru<\/td> 2020<\/td> Invest in an intelligent portfolio of diversified global low-cost ETFs<\/td> RM0<\/td> 0.2% to 0.7%<\/td>\n<\/tr>\n \n\tBEST Invest<\/td> 2020<\/td> Applies robo-intelligence and big data technology to suggest a portfolio of diversified Shariah-compliant unit trust investments<\/td> RM10<\/td> 0.5% to 1.8%<\/td>\n<\/tr>\n \n\tKDI Invest<\/td> 2022<\/td> It allows for AI-assisted investment in a range of selected ETFs listed in the US which aligns with user preferences<\/td> RM0<\/td> 0.3%-0.7% for investments above RM3000<\/td>\n<\/tr>\n \n\tMyTHEO<\/td> 2019<\/td> Uses proprietary algorithms to create functional portfolios that incorporate risk-based investing and \u201csmart beta\u201d<\/td> RM100<\/td> 0.5% - 1%<\/td>\n<\/tr>\n \n\tRaiz<\/td> 2020<\/td> Uses algorithms to determine your risk profile to construct a portfolio of Amanah Saham Nasional Berhad (ASNB)\u2019s unit trust funds<\/td> RM5<\/td> RM1.5 a month (under RM6,000) or 0.3% (RM6,000+)<\/td>\n<\/tr>\n \n\tStashAway<\/td> 2018<\/td> Uses proprietary investment strategy that reacts to economic fundamentals<\/td> RM0<\/td> 0.2% - 0.8%<\/td>\n<\/tr>\n \n\tWahed Invest<\/td> 2019<\/td> Optimises the investor's portfolio with Shariah-compliant investments using modern portfolio theory<\/td> RM100<\/td> 0.39% - 0.79%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<\/span>Comparison of robo advisor fees<\/strong><\/span><\/h2>\n\n
\n\n\n\tRobo advisor<\/th> Annual fees<\/th> Annual fund expense<\/th> Currency conversion fee<\/th>\n<\/tr>\n<\/thead>\n \n\n\tAkru<\/td> 0.2% to 0.7%<\/td> ETFs: 0.03% - 0.13%
\nUnit trust: 0.3% - 0.5%<\/td> -<\/td>\n<\/tr>\n \n\tBEST Invest<\/td> -<\/td> 0.5% to 1.8%<\/td> -<\/td>\n<\/tr>\n \n\tKDI Invest<\/td> 0.3%-0.7% for investments above RM3000<\/td> ETFs: 0.2% to 0.4%
\n
\n<\/td> 0.2%<\/td>\n<\/tr>\n \n\tMyTHEO<\/td> 0.5% - 1%<\/td> 0.04% to 0.80%<\/td> 0%<\/td>\n<\/tr>\n \n\tRaiz<\/td> RM1.50 a month (under RM6,000)
\nor 0.3% (RM6,000+)<\/td> 1%<\/td> -<\/td>\n<\/tr>\n \n\tStashAway<\/td> 0.2% - 0.8%<\/td> 0.04% to 0.80%<\/td> 0.08%<\/td>\n<\/tr>\n \n\tWahed Invest<\/td> 0.39% - 0.79%<\/td> 0.50% - 0.92%<\/td> -<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nMost of these robo advisors charge fees according to your portfolio size \u2013 the larger your portfolio, the less fees you pay. BEST Invest is an exception \u2013 its fees are included in the annual management fees of its unit trust fund investments, which do not decrease with your portfolio size.<\/p>\nBesides the fees of the robo advisor itself, there are also fees associated with the underlying investments that make up your portfolio. Robo advisors that invest in unit trust funds incur higher fees, while those that invest in ETFs incur lower fees.<\/p>\n
Although fees can make a huge difference to your portfolio over time, you shouldn\u2019t pick a platform solely on who charges the least. You should also consider how the platform chooses assets to invest in, how it rebalances your portfolio and whether it provides any other services that could improve your returns.<\/p>\n
<\/span>Portfolio allocation<\/strong><\/span><\/h2>\nHere are examples of the most aggressive portfolios of each platform:<\/p>\n
Akru (Portfolio 10)<\/strong><\/h3>\n\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> iShares Core MSCI Emerging Markets ETF<\/td> 10.45%<\/td>\n<\/tr>\n \n\tEquity<\/td> Vanguard 500 Index Fund ETF<\/td> 54.15%<\/td>\n<\/tr>\n \n\tEquity<\/td> iShares Core MSCI EAFE ETF<\/td> 30.40%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total Bond Market Index Fund ETF<\/td> 1.80%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total International Bond Index Fund ETF<\/td> 2.20%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1.00%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nAkru offers ten portfolios, ranging from Portfolio 1 (lowest-risk) to Portfolio 10 (highest-risk). It\u2019s highest-risk portfolio allocates 95% to equities, 4% to bonds and 1% to cash. A major portion (54%) of that is invested in US equities, while 41% is invested in international stocks.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/td> 30%<\/td>\n<\/tr>\n \n\tEquity<\/td> BIMB-Arabesque I Global Dividend Fund 1<\/td> 60%<\/td>\n<\/tr>\n \n\tSukuk<\/td> BIMB ESG Sukuk Fund Class A<\/td> 10%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nBEST Invest invests in five types of unit trust funds \u2013 three equity funds, a sukuk fund and a money market fund. All its investments are Shariah-compliant.<\/p>\nIn 2020, we used Morningstar<\/a> to estimate its geographical allocation:
\n\n
\n\n\n\tRegion<\/th> Allocation<\/strong><\/th>\n<\/tr>\n<\/thead>\n\n\n\tGreater Europe<\/strong><\/td>9.41%<\/strong><\/td>\n<\/tr>\n\n\tUnited Kingdom<\/td> 0.79%<\/td>\n<\/tr>\n \n\tWestern Europe - Euro<\/td> 4.34%<\/td>\n<\/tr>\n \n\tWestern Europe - Non-Euro<\/td> 3.54%<\/td>\n<\/tr>\n \n\tMiddle East \/ Africa<\/td> 0.74%<\/td>\n<\/tr>\n \n\tAmericas<\/strong><\/td>39.99%<\/strong><\/td>\n<\/tr>\n\n\tUnited States<\/td> 37.09%<\/td>\n<\/tr>\n \n\tCanada<\/td> 2.06%<\/td>\n<\/tr>\n \n\tCentral & Latin America<\/td> 0.84%<\/td>\n<\/tr>\n \n\tGreater Asia<\/strong><\/td>50.6%<\/strong><\/td>\n<\/tr>\n\n\tJapan<\/td> 26.8%<\/td>\n<\/tr>\n \n\tAustralasia<\/td> 5.96%<\/td>\n<\/tr>\n \n\tEmerging 4 Tigers<\/td> 8.67%<\/td>\n<\/tr>\n \n\tEmerging Asia - Ex 4 Tigers<\/td> 9.18%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nOver a third of BEST Invest\u2019s aggressive portfolio is invested in the United States, while a quarter is invested in Japan. If you\u2019ve been investing mostly in local securities, this portfolio could help you spread your risk globally.<\/p>\nHowever, it\u2019s worth noting that both the BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/a> and BIMB-Arabesque I Global Dividend Fund 1<\/a> have underperformed benchmarks since their inception. As of June 2021, they had a three-year cumulative performance of -1.09% and 11.96% respectively.<\/p>\nKDI Invest (US Exchange Traded Funds \u2013 US ETFs)<\/h3>\n
KDI\u2019s investment platform is AI driven, needing little to no human involvement in its management. Most robo-advisors in Malaysia right now utilise a mix of AI and input from a fund manager, making KDI\u2019s offering a rather unique one.<\/p>\n
The KDI Invest portfolio invests in ETFs listed on the stock exchanges in the USA. This is mainly because the USA stock exchanges offer the most liquid, deepest and widest range of ETFs covering asset classes across the world, compared to ETFs listed in other countries. This allows investments to get access to global investment trends.<\/p>\n
KDI goes the extra mile to ensure currency conversion costs are as low as possible. Saxo Capital Markets, KDI\u2019s appointed broker, has committed to fixing the cost of currency conversion at 20 basis points (about 0.2% rate) linked the current foreign exchange rate.<\/p>\n
KDI is also completely free for investments below RM3000. For investments above RM3000, clients are charged with a management fee between 0.3%-0.7%. As such, this makes KDI a very accessible option for Malaysians.<\/p>\n
MyTHEO (\u201cGrowth\u201d portfolio)<\/h3>\n
\n
\n\n\n\tETF<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tiShares MSCI Germany ETF (EWG)<\/td> 3.34%<\/td>\n<\/tr>\n \n\tiShares MSCI Hong Kong ETF (EWH)<\/td> 6.57%<\/td>\n<\/tr>\n \n\tiShares MSCI Japan ETF (EWJ)<\/td> 14.76%<\/td>\n<\/tr>\n \n\tiShares MSCI Singapore ETF (EWS)<\/td> 3.84%<\/td>\n<\/tr>\n \n\tiShares MSCI Taiwan ETF (EWT)<\/td> 3.81%<\/td>\n<\/tr>\n \n\tiShares MSCI United Kingdom (EWU)<\/td> 8.27%<\/td>\n<\/tr>\n \n\tiShares MSCI Frontier (FM)<\/td> 4.21%<\/td>\n<\/tr>\n \n\tInvesco QQQ Trust (QQQ)<\/td> 20.96%<\/td>\n<\/tr>\n \n\tiShares MSCI USA ESG Select ETF (SUSA)<\/td> 5.15%<\/td>\n<\/tr>\n \n\tVanguard FTSE Pacific ETF (VPL)<\/td> 9.10%<\/td>\n<\/tr>\n \n\tVanguard Value ETF (VTV)<\/td> 19.84%<\/td>\n<\/tr>\n \n\tCash<\/td> 0.15%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nMyTHEO\u2019s most aggressive portfolio setting is almost entirely made\u00a0up\u00a0of\u00a0equities.\u00a0Slightly less than half of that (45%) goes to US stocks, while 54% goes to international stocks. Big portions of that are made up of specific regions, such as a 14.76% allocation to Japanese equities and 6.57% to Hong Kong equities.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tMalaysian equities<\/td> ASN Equity 3 Fund<\/td> 80%<\/td>\n<\/tr>\n \n\tMalaysian mixed assets (conservative)<\/td> ASN Sara 1 Fund<\/td> 20%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nRaiz\u2019s highest-risk portfolio is only made up of two unit trust funds from Amanah Saham Nasional Berhad (ASNB) that invest locally. These funds are not considered Shariah-compliant by the Securities Commission of Malaysia, as they invest in Maybank, which is considered a non-Shariah-compliant stock. However, Malaysian Islamic councils consider these funds \u2018harus\u2019 or permissible<\/a>.<\/p>\nAs of July 2021, ASN Equity 3 has a 10-year annualised return of 3.00%, while ASN Sara 1 has an annualised return of 5.17% in the same period.<\/p>\n
Raiz is the only robo advisor that allows you to automatically invest spare change from everyday purchases. Here\u2019s how it works: you link a spending account with Raiz, which will be monitored for transactions. If you make a transaction \u2013 say, RM40.20 for petrol \u2013 Raiz will round up the transaction and invest the RM0.80 difference.<\/p>\n
At the time of writing, Raiz only allows you to connect your Maybank account to invest your spare change, but you can use other bank accounts to fund regular investments.<\/p>\n
StashAway (Highest-risk growth portfolio \u2013 36% Risk Index)<\/h3>\n
\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tInternational equities<\/td> iShares MSCI Australia ETF (EWA)<\/td> 10%<\/td>\n<\/tr>\n \n\tInternational equities<\/td> KraneShares CSI China Internet ETF (KWEB)<\/td> 20%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> iShares Core S&P Small Cap ETF (IJR)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Energy Select Sector SPDR Fund (XLE)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Consumer Stapes Select Sector SPDR Fund (XLP)<\/td> 16%<\/td>\n<\/tr>\n \n\tCorporate Bonds<\/td> iShares Core U.S. Aggregate Bond ETF (AGG)<\/td> 8.5%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard REIT ETF (VNQ)<\/td> 7.7%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard Global ex-U.S. Real Estate Index Fund ETF (VNQI)<\/td> 12.3%<\/td>\n<\/tr>\n \n\tCommodities<\/td> SPDR Gold Trust (GLD)<\/td> 4.5%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nStashAway\u2019s highest-risk portfolio is largely allocated in the US (45.7%), China (20.4%) and Australia (10.8%). Notably, 20% of its portfolio is invested in KraneShares CSI China Internet ETF, which recently plunged amid China\u2019s regulatory crackdown<\/a> on tech companies.<\/p>\n
Here\u2019s how these robo advisors compare against each other at a glance:
\n\n
<\/span>Comparison of robo advisor fees<\/strong><\/span><\/h2>\n\n
\n\n\n\tRobo advisor<\/th> Annual fees<\/th> Annual fund expense<\/th> Currency conversion fee<\/th>\n<\/tr>\n<\/thead>\n \n\n\tAkru<\/td> 0.2% to 0.7%<\/td> ETFs: 0.03% - 0.13%
\nUnit trust: 0.3% - 0.5%<\/td> -<\/td>\n<\/tr>\n \n\tBEST Invest<\/td> -<\/td> 0.5% to 1.8%<\/td> -<\/td>\n<\/tr>\n \n\tKDI Invest<\/td> 0.3%-0.7% for investments above RM3000<\/td> ETFs: 0.2% to 0.4%
\n
\n<\/td> 0.2%<\/td>\n<\/tr>\n \n\tMyTHEO<\/td> 0.5% - 1%<\/td> 0.04% to 0.80%<\/td> 0%<\/td>\n<\/tr>\n \n\tRaiz<\/td> RM1.50 a month (under RM6,000)
\nor 0.3% (RM6,000+)<\/td> 1%<\/td> -<\/td>\n<\/tr>\n \n\tStashAway<\/td> 0.2% - 0.8%<\/td> 0.04% to 0.80%<\/td> 0.08%<\/td>\n<\/tr>\n \n\tWahed Invest<\/td> 0.39% - 0.79%<\/td> 0.50% - 0.92%<\/td> -<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nMost of these robo advisors charge fees according to your portfolio size \u2013 the larger your portfolio, the less fees you pay. BEST Invest is an exception \u2013 its fees are included in the annual management fees of its unit trust fund investments, which do not decrease with your portfolio size.<\/p>\nBesides the fees of the robo advisor itself, there are also fees associated with the underlying investments that make up your portfolio. Robo advisors that invest in unit trust funds incur higher fees, while those that invest in ETFs incur lower fees.<\/p>\n
Although fees can make a huge difference to your portfolio over time, you shouldn\u2019t pick a platform solely on who charges the least. You should also consider how the platform chooses assets to invest in, how it rebalances your portfolio and whether it provides any other services that could improve your returns.<\/p>\n
<\/span>Portfolio allocation<\/strong><\/span><\/h2>\nHere are examples of the most aggressive portfolios of each platform:<\/p>\n
Akru (Portfolio 10)<\/strong><\/h3>\n\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> iShares Core MSCI Emerging Markets ETF<\/td> 10.45%<\/td>\n<\/tr>\n \n\tEquity<\/td> Vanguard 500 Index Fund ETF<\/td> 54.15%<\/td>\n<\/tr>\n \n\tEquity<\/td> iShares Core MSCI EAFE ETF<\/td> 30.40%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total Bond Market Index Fund ETF<\/td> 1.80%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total International Bond Index Fund ETF<\/td> 2.20%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1.00%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nAkru offers ten portfolios, ranging from Portfolio 1 (lowest-risk) to Portfolio 10 (highest-risk). It\u2019s highest-risk portfolio allocates 95% to equities, 4% to bonds and 1% to cash. A major portion (54%) of that is invested in US equities, while 41% is invested in international stocks.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/td> 30%<\/td>\n<\/tr>\n \n\tEquity<\/td> BIMB-Arabesque I Global Dividend Fund 1<\/td> 60%<\/td>\n<\/tr>\n \n\tSukuk<\/td> BIMB ESG Sukuk Fund Class A<\/td> 10%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nBEST Invest invests in five types of unit trust funds \u2013 three equity funds, a sukuk fund and a money market fund. All its investments are Shariah-compliant.<\/p>\nIn 2020, we used Morningstar<\/a> to estimate its geographical allocation:
\n\n
\n\n\n\tRegion<\/th> Allocation<\/strong><\/th>\n<\/tr>\n<\/thead>\n\n\n\tGreater Europe<\/strong><\/td>9.41%<\/strong><\/td>\n<\/tr>\n\n\tUnited Kingdom<\/td> 0.79%<\/td>\n<\/tr>\n \n\tWestern Europe - Euro<\/td> 4.34%<\/td>\n<\/tr>\n \n\tWestern Europe - Non-Euro<\/td> 3.54%<\/td>\n<\/tr>\n \n\tMiddle East \/ Africa<\/td> 0.74%<\/td>\n<\/tr>\n \n\tAmericas<\/strong><\/td>39.99%<\/strong><\/td>\n<\/tr>\n\n\tUnited States<\/td> 37.09%<\/td>\n<\/tr>\n \n\tCanada<\/td> 2.06%<\/td>\n<\/tr>\n \n\tCentral & Latin America<\/td> 0.84%<\/td>\n<\/tr>\n \n\tGreater Asia<\/strong><\/td>50.6%<\/strong><\/td>\n<\/tr>\n\n\tJapan<\/td> 26.8%<\/td>\n<\/tr>\n \n\tAustralasia<\/td> 5.96%<\/td>\n<\/tr>\n \n\tEmerging 4 Tigers<\/td> 8.67%<\/td>\n<\/tr>\n \n\tEmerging Asia - Ex 4 Tigers<\/td> 9.18%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nOver a third of BEST Invest\u2019s aggressive portfolio is invested in the United States, while a quarter is invested in Japan. If you\u2019ve been investing mostly in local securities, this portfolio could help you spread your risk globally.<\/p>\nHowever, it\u2019s worth noting that both the BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/a> and BIMB-Arabesque I Global Dividend Fund 1<\/a> have underperformed benchmarks since their inception. As of June 2021, they had a three-year cumulative performance of -1.09% and 11.96% respectively.<\/p>\nKDI Invest (US Exchange Traded Funds \u2013 US ETFs)<\/h3>\n
KDI\u2019s investment platform is AI driven, needing little to no human involvement in its management. Most robo-advisors in Malaysia right now utilise a mix of AI and input from a fund manager, making KDI\u2019s offering a rather unique one.<\/p>\n
The KDI Invest portfolio invests in ETFs listed on the stock exchanges in the USA. This is mainly because the USA stock exchanges offer the most liquid, deepest and widest range of ETFs covering asset classes across the world, compared to ETFs listed in other countries. This allows investments to get access to global investment trends.<\/p>\n
KDI goes the extra mile to ensure currency conversion costs are as low as possible. Saxo Capital Markets, KDI\u2019s appointed broker, has committed to fixing the cost of currency conversion at 20 basis points (about 0.2% rate) linked the current foreign exchange rate.<\/p>\n
KDI is also completely free for investments below RM3000. For investments above RM3000, clients are charged with a management fee between 0.3%-0.7%. As such, this makes KDI a very accessible option for Malaysians.<\/p>\n
MyTHEO (\u201cGrowth\u201d portfolio)<\/h3>\n
\n
\n\n\n\tETF<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tiShares MSCI Germany ETF (EWG)<\/td> 3.34%<\/td>\n<\/tr>\n \n\tiShares MSCI Hong Kong ETF (EWH)<\/td> 6.57%<\/td>\n<\/tr>\n \n\tiShares MSCI Japan ETF (EWJ)<\/td> 14.76%<\/td>\n<\/tr>\n \n\tiShares MSCI Singapore ETF (EWS)<\/td> 3.84%<\/td>\n<\/tr>\n \n\tiShares MSCI Taiwan ETF (EWT)<\/td> 3.81%<\/td>\n<\/tr>\n \n\tiShares MSCI United Kingdom (EWU)<\/td> 8.27%<\/td>\n<\/tr>\n \n\tiShares MSCI Frontier (FM)<\/td> 4.21%<\/td>\n<\/tr>\n \n\tInvesco QQQ Trust (QQQ)<\/td> 20.96%<\/td>\n<\/tr>\n \n\tiShares MSCI USA ESG Select ETF (SUSA)<\/td> 5.15%<\/td>\n<\/tr>\n \n\tVanguard FTSE Pacific ETF (VPL)<\/td> 9.10%<\/td>\n<\/tr>\n \n\tVanguard Value ETF (VTV)<\/td> 19.84%<\/td>\n<\/tr>\n \n\tCash<\/td> 0.15%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nMyTHEO\u2019s most aggressive portfolio setting is almost entirely made\u00a0up\u00a0of\u00a0equities.\u00a0Slightly less than half of that (45%) goes to US stocks, while 54% goes to international stocks. Big portions of that are made up of specific regions, such as a 14.76% allocation to Japanese equities and 6.57% to Hong Kong equities.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tMalaysian equities<\/td> ASN Equity 3 Fund<\/td> 80%<\/td>\n<\/tr>\n \n\tMalaysian mixed assets (conservative)<\/td> ASN Sara 1 Fund<\/td> 20%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nRaiz\u2019s highest-risk portfolio is only made up of two unit trust funds from Amanah Saham Nasional Berhad (ASNB) that invest locally. These funds are not considered Shariah-compliant by the Securities Commission of Malaysia, as they invest in Maybank, which is considered a non-Shariah-compliant stock. However, Malaysian Islamic councils consider these funds \u2018harus\u2019 or permissible<\/a>.<\/p>\nAs of July 2021, ASN Equity 3 has a 10-year annualised return of 3.00%, while ASN Sara 1 has an annualised return of 5.17% in the same period.<\/p>\n
Raiz is the only robo advisor that allows you to automatically invest spare change from everyday purchases. Here\u2019s how it works: you link a spending account with Raiz, which will be monitored for transactions. If you make a transaction \u2013 say, RM40.20 for petrol \u2013 Raiz will round up the transaction and invest the RM0.80 difference.<\/p>\n
At the time of writing, Raiz only allows you to connect your Maybank account to invest your spare change, but you can use other bank accounts to fund regular investments.<\/p>\n
StashAway (Highest-risk growth portfolio \u2013 36% Risk Index)<\/h3>\n
\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tInternational equities<\/td> iShares MSCI Australia ETF (EWA)<\/td> 10%<\/td>\n<\/tr>\n \n\tInternational equities<\/td> KraneShares CSI China Internet ETF (KWEB)<\/td> 20%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> iShares Core S&P Small Cap ETF (IJR)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Energy Select Sector SPDR Fund (XLE)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Consumer Stapes Select Sector SPDR Fund (XLP)<\/td> 16%<\/td>\n<\/tr>\n \n\tCorporate Bonds<\/td> iShares Core U.S. Aggregate Bond ETF (AGG)<\/td> 8.5%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard REIT ETF (VNQ)<\/td> 7.7%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard Global ex-U.S. Real Estate Index Fund ETF (VNQI)<\/td> 12.3%<\/td>\n<\/tr>\n \n\tCommodities<\/td> SPDR Gold Trust (GLD)<\/td> 4.5%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nStashAway\u2019s highest-risk portfolio is largely allocated in the US (45.7%), China (20.4%) and Australia (10.8%). Notably, 20% of its portfolio is invested in KraneShares CSI China Internet ETF, which recently plunged amid China\u2019s regulatory crackdown<\/a> on tech companies.<\/p>\n
\nUnit trust: 0.3% - 0.5%<\/td>
\n
\n<\/td>
\nor 0.3% (RM6,000+)<\/td>
\nMost of these robo advisors charge fees according to your portfolio size \u2013 the larger your portfolio, the less fees you pay. BEST Invest is an exception \u2013 its fees are included in the annual management fees of its unit trust fund investments, which do not decrease with your portfolio size.<\/p>\n
Besides the fees of the robo advisor itself, there are also fees associated with the underlying investments that make up your portfolio. Robo advisors that invest in unit trust funds incur higher fees, while those that invest in ETFs incur lower fees.<\/p>\n
Although fees can make a huge difference to your portfolio over time, you shouldn\u2019t pick a platform solely on who charges the least. You should also consider how the platform chooses assets to invest in, how it rebalances your portfolio and whether it provides any other services that could improve your returns.<\/p>\n
<\/span>Portfolio allocation<\/strong><\/span><\/h2>\nHere are examples of the most aggressive portfolios of each platform:<\/p>\n
Akru (Portfolio 10)<\/strong><\/h3>\n\n
\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> iShares Core MSCI Emerging Markets ETF<\/td> 10.45%<\/td>\n<\/tr>\n \n\tEquity<\/td> Vanguard 500 Index Fund ETF<\/td> 54.15%<\/td>\n<\/tr>\n \n\tEquity<\/td> iShares Core MSCI EAFE ETF<\/td> 30.40%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total Bond Market Index Fund ETF<\/td> 1.80%<\/td>\n<\/tr>\n \n\tBond<\/td> Vanguard Total International Bond Index Fund ETF<\/td> 2.20%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1.00%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nAkru offers ten portfolios, ranging from Portfolio 1 (lowest-risk) to Portfolio 10 (highest-risk). It\u2019s highest-risk portfolio allocates 95% to equities, 4% to bonds and 1% to cash. A major portion (54%) of that is invested in US equities, while 41% is invested in international stocks.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tEquity<\/td> BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/td> 30%<\/td>\n<\/tr>\n \n\tEquity<\/td> BIMB-Arabesque I Global Dividend Fund 1<\/td> 60%<\/td>\n<\/tr>\n \n\tSukuk<\/td> BIMB ESG Sukuk Fund Class A<\/td> 10%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nBEST Invest invests in five types of unit trust funds \u2013 three equity funds, a sukuk fund and a money market fund. All its investments are Shariah-compliant.<\/p>\nIn 2020, we used Morningstar<\/a> to estimate its geographical allocation:
\n\n
\n\n\n\tRegion<\/th> Allocation<\/strong><\/th>\n<\/tr>\n<\/thead>\n\n\n\tGreater Europe<\/strong><\/td>9.41%<\/strong><\/td>\n<\/tr>\n\n\tUnited Kingdom<\/td> 0.79%<\/td>\n<\/tr>\n \n\tWestern Europe - Euro<\/td> 4.34%<\/td>\n<\/tr>\n \n\tWestern Europe - Non-Euro<\/td> 3.54%<\/td>\n<\/tr>\n \n\tMiddle East \/ Africa<\/td> 0.74%<\/td>\n<\/tr>\n \n\tAmericas<\/strong><\/td>39.99%<\/strong><\/td>\n<\/tr>\n\n\tUnited States<\/td> 37.09%<\/td>\n<\/tr>\n \n\tCanada<\/td> 2.06%<\/td>\n<\/tr>\n \n\tCentral & Latin America<\/td> 0.84%<\/td>\n<\/tr>\n \n\tGreater Asia<\/strong><\/td>50.6%<\/strong><\/td>\n<\/tr>\n\n\tJapan<\/td> 26.8%<\/td>\n<\/tr>\n \n\tAustralasia<\/td> 5.96%<\/td>\n<\/tr>\n \n\tEmerging 4 Tigers<\/td> 8.67%<\/td>\n<\/tr>\n \n\tEmerging Asia - Ex 4 Tigers<\/td> 9.18%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nOver a third of BEST Invest\u2019s aggressive portfolio is invested in the United States, while a quarter is invested in Japan. If you\u2019ve been investing mostly in local securities, this portfolio could help you spread your risk globally.<\/p>\nHowever, it\u2019s worth noting that both the BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund<\/a> and BIMB-Arabesque I Global Dividend Fund 1<\/a> have underperformed benchmarks since their inception. As of June 2021, they had a three-year cumulative performance of -1.09% and 11.96% respectively.<\/p>\nKDI Invest (US Exchange Traded Funds \u2013 US ETFs)<\/h3>\n
KDI\u2019s investment platform is AI driven, needing little to no human involvement in its management. Most robo-advisors in Malaysia right now utilise a mix of AI and input from a fund manager, making KDI\u2019s offering a rather unique one.<\/p>\n
The KDI Invest portfolio invests in ETFs listed on the stock exchanges in the USA. This is mainly because the USA stock exchanges offer the most liquid, deepest and widest range of ETFs covering asset classes across the world, compared to ETFs listed in other countries. This allows investments to get access to global investment trends.<\/p>\n
KDI goes the extra mile to ensure currency conversion costs are as low as possible. Saxo Capital Markets, KDI\u2019s appointed broker, has committed to fixing the cost of currency conversion at 20 basis points (about 0.2% rate) linked the current foreign exchange rate.<\/p>\n
KDI is also completely free for investments below RM3000. For investments above RM3000, clients are charged with a management fee between 0.3%-0.7%. As such, this makes KDI a very accessible option for Malaysians.<\/p>\n
MyTHEO (\u201cGrowth\u201d portfolio)<\/h3>\n
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\n\n\n\tETF<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tiShares MSCI Germany ETF (EWG)<\/td> 3.34%<\/td>\n<\/tr>\n \n\tiShares MSCI Hong Kong ETF (EWH)<\/td> 6.57%<\/td>\n<\/tr>\n \n\tiShares MSCI Japan ETF (EWJ)<\/td> 14.76%<\/td>\n<\/tr>\n \n\tiShares MSCI Singapore ETF (EWS)<\/td> 3.84%<\/td>\n<\/tr>\n \n\tiShares MSCI Taiwan ETF (EWT)<\/td> 3.81%<\/td>\n<\/tr>\n \n\tiShares MSCI United Kingdom (EWU)<\/td> 8.27%<\/td>\n<\/tr>\n \n\tiShares MSCI Frontier (FM)<\/td> 4.21%<\/td>\n<\/tr>\n \n\tInvesco QQQ Trust (QQQ)<\/td> 20.96%<\/td>\n<\/tr>\n \n\tiShares MSCI USA ESG Select ETF (SUSA)<\/td> 5.15%<\/td>\n<\/tr>\n \n\tVanguard FTSE Pacific ETF (VPL)<\/td> 9.10%<\/td>\n<\/tr>\n \n\tVanguard Value ETF (VTV)<\/td> 19.84%<\/td>\n<\/tr>\n \n\tCash<\/td> 0.15%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nMyTHEO\u2019s most aggressive portfolio setting is almost entirely made\u00a0up\u00a0of\u00a0equities.\u00a0Slightly less than half of that (45%) goes to US stocks, while 54% goes to international stocks. Big portions of that are made up of specific regions, such as a 14.76% allocation to Japanese equities and 6.57% to Hong Kong equities.<\/p>\n\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tMalaysian equities<\/td> ASN Equity 3 Fund<\/td> 80%<\/td>\n<\/tr>\n \n\tMalaysian mixed assets (conservative)<\/td> ASN Sara 1 Fund<\/td> 20%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nRaiz\u2019s highest-risk portfolio is only made up of two unit trust funds from Amanah Saham Nasional Berhad (ASNB) that invest locally. These funds are not considered Shariah-compliant by the Securities Commission of Malaysia, as they invest in Maybank, which is considered a non-Shariah-compliant stock. However, Malaysian Islamic councils consider these funds \u2018harus\u2019 or permissible<\/a>.<\/p>\nAs of July 2021, ASN Equity 3 has a 10-year annualised return of 3.00%, while ASN Sara 1 has an annualised return of 5.17% in the same period.<\/p>\n
Raiz is the only robo advisor that allows you to automatically invest spare change from everyday purchases. Here\u2019s how it works: you link a spending account with Raiz, which will be monitored for transactions. If you make a transaction \u2013 say, RM40.20 for petrol \u2013 Raiz will round up the transaction and invest the RM0.80 difference.<\/p>\n
At the time of writing, Raiz only allows you to connect your Maybank account to invest your spare change, but you can use other bank accounts to fund regular investments.<\/p>\n
StashAway (Highest-risk growth portfolio \u2013 36% Risk Index)<\/h3>\n
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\n\n\n\tType<\/th> Name<\/th> Allocation<\/th>\n<\/tr>\n<\/thead>\n \n\n\tInternational equities<\/td> iShares MSCI Australia ETF (EWA)<\/td> 10%<\/td>\n<\/tr>\n \n\tInternational equities<\/td> KraneShares CSI China Internet ETF (KWEB)<\/td> 20%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> iShares Core S&P Small Cap ETF (IJR)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Energy Select Sector SPDR Fund (XLE)<\/td> 10%<\/td>\n<\/tr>\n \n\tEquity sectors (US)<\/td> Consumer Stapes Select Sector SPDR Fund (XLP)<\/td> 16%<\/td>\n<\/tr>\n \n\tCorporate Bonds<\/td> iShares Core U.S. Aggregate Bond ETF (AGG)<\/td> 8.5%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard REIT ETF (VNQ)<\/td> 7.7%<\/td>\n<\/tr>\n \n\tReal Estate<\/td> Vanguard Global ex-U.S. Real Estate Index Fund ETF (VNQI)<\/td> 12.3%<\/td>\n<\/tr>\n \n\tCommodities<\/td> SPDR Gold Trust (GLD)<\/td> 4.5%<\/td>\n<\/tr>\n \n\tCash<\/td> -<\/td> 1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nStashAway\u2019s highest-risk portfolio is largely allocated in the US (45.7%), China (20.4%) and Australia (10.8%). Notably, 20% of its portfolio is invested in KraneShares CSI China Internet ETF, which recently plunged amid China\u2019s regulatory crackdown<\/a> on tech companies.<\/p>\n
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| Type<\/th> | Name<\/th> | Allocation<\/th>\n<\/tr>\n<\/thead>\n | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity<\/td> | iShares Core MSCI Emerging Markets ETF<\/td> | 10.45%<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity<\/td> | Vanguard 500 Index Fund ETF<\/td> | 54.15%<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity<\/td> | iShares Core MSCI EAFE ETF<\/td> | 30.40%<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond<\/td> | Vanguard Total Bond Market Index Fund ETF<\/td> | 1.80%<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond<\/td> | Vanguard Total International Bond Index Fund ETF<\/td> | 2.20%<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash<\/td> | -<\/td> | 1.00%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \nAkru offers ten portfolios, ranging from Portfolio 1 (lowest-risk) to Portfolio 10 (highest-risk). It\u2019s highest-risk portfolio allocates 95% to equities, 4% to bonds and 1% to cash. A major portion (54%) of that is invested in US equities, while 41% is invested in international stocks.<\/p>\n
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