{"id":48340,"date":"2021-07-06T10:38:09","date_gmt":"2021-07-06T02:38:09","guid":{"rendered":"http:\/\/wordpress-my-161844363.ap-southeast-1.elb.amazonaws.com\/articles\/?p=48340"},"modified":"2021-07-08T10:23:48","modified_gmt":"2021-07-08T02:23:48","slug":"why-micro-investing","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/why-micro-investing","title":{"rendered":"What Is Micro-Investing, And How You Can Start In Malaysia"},"content":{"rendered":"

Due to the rising cost of living, Malaysians are always on the lookout for new ways to bolster their income. Some turn to e-commerce and selling products on social media, while others participate in the gig economy with services like Grab and FoodPanda.\u00a0<\/span><\/p>\n

Despite the uncertain economic conditions, more Malaysians have also started investing during this time.<\/p>\n

Last year, retail investors investments outnumbered those placed by institutional investors on Bursa Malaysia. According to the Securities Commission Malaysia<\/a>, the participation rate of Malaysian retail investors in 2020 averaged 32.4% compared to 20.8% in 2019. In fact, this trend is not unique to Malaysia but in general, many markets around the world also saw record participation by retail investors, who are non-professional investors like you and me.<\/p>\n

But since the financial demands of traditional investments can be quite large, many beginners are looking for options that have lower barriers to entry.<\/span><\/p>\n

<\/span>What is micro-investing?<\/span><\/h2>\n

First things first, let\u2019s talk about what micro investing is.\u00a0<\/span><\/p>\n

It\u2019s simple. Micro investing is actually just like normal investing, only done on a much smaller scale. Instead of using a large amount of money as the collateral, micro investing is done with smaller amounts of money like your spare change, literally.\u00a0 <\/span><\/p>\n

So, instead of tossing your spare change into your drawer, you can put it in an investment account where it can still earn interest, even if its just a few cents at a time.\u00a0<\/span><\/p>\n

In Malaysia, you can now put your ‘virtual spare change’ into Raiz<\/a>, a micro-investing mobile app that will round up your daily online purchases and invest the spare change into Amanah Saham Nasional Bhd\u2019s (ASNB).<\/div><\/div>\n

<\/span>Why is micro-investing rising in popularity?<\/b><\/span><\/h2>\n

How much is spare change to you, RM5.00 or RM10.00 perhaps? <\/span>With a starting amount as small as that, a lot of Malaysians can start dabbling in investing without much risk.\u00a0<\/span><\/p>\n

But is micro investing really a good option to supplement your income? How much can you really earn by investing\u00a0 RM5.00? You’ ll be surprised to find out!<\/span><\/p>\n

If you start rounding up just RM2.00 a day from your online purchases when you are 25 years old, you will be surprised how much your spare change can grow with compound interest over 30 years.<\/p>\n\n\n\n\n\t\n\t\n\t
Daily spare change round up<\/strong><\/td>RM2.00<\/td>\n<\/tr>\n
Monthly spare change total<\/strong><\/td>RM60.00<\/td>\n<\/tr>\n
After 30 years at 6% annual interest<\/strong><\/td>RM58,471.00<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n
Sample calculation from thecalculatorsite.com<\/a><\/h6>\n

While this amount alone may not be enough to support your retirement, having over RM50,000 is no small change either!<\/p>\n

Key features of micro-investing you should know:<\/span><\/p>\n