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Robo-advisors in Malaysia

Which robo-advisor in Malaysia is the best option to manage your investments?

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By

Kylie Purcell

&

Ardiansyah Lubis

Updated

Fact checked

Getting financial advice can be expensive in Malaysia and may not be worth the cost if you don’t have a lot to invest. That’s where robo-advice comes in.

Robo-advisors are digital financial advisers that use modern technology to offer low-cost investment management services. In this guide, we explain how these platforms work and how can you compare their services.

What is a robo-advisor?

A robo-advisor is an online platform or app that provides the same services as a traditional financial adviser. Using a mix of algorithms and analysis from experts working behind the scenes, these digital advisers create financial plans for customers and automatically manages their investments.

The robo-advice platform generates a recommended portfolio, which is usually a combination of exchange traded funds (ETFs), unit trusts (UTs), bonds/sukuk, gold or other financial instruments. The investment portfolio you receive is based on your financial goals, investment timeframe and appetite for risk.

Once your money is invested, the robo-advisor manages your portfolio and re-balances it whenever necessary to ensure it remains in line with your risk tolerance levels.

What are the benefits of using a robo-advisor?

At about one-tenth of the cost, robo-advisors are much cheaper than having a traditional financial adviser actively manage your investments. This makes financial advice accessible for all Malaysians.

The other advantage of using a robo-advisor instead of making decisions yourself is that it removes the emotion from investing that can often lead you to make the wrong decisions.

However, for the 80% of the population who either cannot afford or are unwilling to pay the fees to receive traditional financial advice, robo-advisors offer a convenient and affordable alternative.

Robo-advisors in Malaysia

While the first regulated robo-advice platform in Malaysia just launched in 2018, robo-advisors tend to become mainstream as the popularity grows at a rapid pace. Today you as an investor have a number of low-cost options to choose from.

Here are some of the most popular robo-advisors in Malaysia, including their minimum investment amount, fees and investment focus:

PlatformMinimum investmentAnnual management feeInvestment focus
StashAwayRM00.2% to 0.8%Diversified global ETFs listed in the US Market
MYTHEORM1000.5% to 1%Diversified global ETFs listed in the US Market
BEST InvestRM100.5% to 1.8%Diversified shariah-compliant ETFs, UTs
Wahed InvestRM1000.39% to 0.79%Shariah-compliant US and local stocks, Islamic bonds/sukuk, gold
Raiz InvestRM5RM1.5 a month (under RM6,000) or 0.3% a year (RM6,000+)Amanah Saham Nasional Berhad (ASNB) UTs, bonds
AkruRM00.2% to 0.7%Diversified global ETFs, UTs

*Note: Information provided is accurate as of 30 December 2021.

How do I sign up to a robo-advice service?

Although the exact signup process differs between robo-advisors, you will generally need to follow these steps:

  • Provide your name, contact details and proof of identity.
  • Complete a questionnaire regarding your investment timeframe and your tolerance for withstanding market fluctuations.
  • The robo-advisor generates a recommended investment portfolio.
  • If you’re happy with the investment portfolio, you can opt to proceed with the recommended strategy.
  • Provide your bank account details to fund the investment.
  • The robo-advisor invests your money in the chosen portfolio.
  • The robo-advisor monitors your portfolio and makes adjustments when necessary to make sure it satisfies your tolerance for risk.

Robo-advice is changing the face of wealth management around the world and could offer a more affordable way for you to look after your investments. However, make sure you compare the benefits and features of a number of robo-advisors before choosing the right service for you.

Important information: Powered by finder.com. This information is general in nature and is no substitute for professional advice. It does not take into account your personal situation. This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for most investors. You do not own or have any interest in the underlying asset. Capital is at risk, including the risk of losing more than the amount originally put in, market volatility and liquidity risks. Past performance is no guarantee of future results. Tax on profits may apply. Consider your own circumstances, including whether you can afford to take the high risk of losing your money and possess the relevant experience and knowledge. We recommend that you obtain independent advice from a suitably licensed financial advisor before making any trades.

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