Raiz Investment for Malaysian
How much do you want to Raiz ?
What is Raiz and How Does it is Connected to Malaysian?
Raiz is a platform developed by a fintech company based in Australia that provide multiple portfolio of investments through a joint venture with Permodalan Nasional Berhad (PNB). Raiz enable people who spend on their MayBank (as of now) debit card to invest on their spare changes. If a plate of meal cost RM 7.75, MayBank will charge investor RM 8.00 and the remaining RM 0.25 will be accumulated to RM 5 (this threshold will grow bigger) before being invested to the respective portfolio.
ASNB funds that were chose to be included in Raiz platform is from Variable Price category, which consists of Amanah Saham Nasional (ASN) Equity 3, Sara 1, and Imbang 2 funds. All of the unit prices from all 3 funds are vary from day to day. The daily unit price can be checked daily from ASNB website.
Portfolios in Raiz Malaysia?
Currently, there are 3 types of portfolios in this app namely Conservative, Moderate, and Aggressive. Each of these portfolios consists of 20:80, 50:50, and 80:20 ratios respectively. All of the funds invested will be divided accordingly to the ratios into either Sara 1 (Mixed Assets) fund, Equity 3 fund, or Imbang 2 (Mixed Assets Balanced) fund. All these 3 funds has been handpicked carefully by PNB as the fund manager.
For example in Conservative, for every RM 1 invested into this portfolio, RM 0.80 will be invested into Sara 1 fund while the RM 0.20 will be invested into Equity 3 fund. While on the Aggressive, the ratio is in reverse where RM 0.80 will be invested into Equity 3 and RM 0.20 will be invested into Sara 1 fund. Assuming I deposit RM 50 into my chosen portfolio, Conservative, RM 40 (80% of RM 50) will be invested into Sara 1 fund, while RM 10 (20% of RM RM 50).
How to Deposit (Buy Units) ?
There are 3 type of deposit methods that investor can try on namely One-Time investment, Recurring investment, and Round-Ups investment method. For One-Time investment, it simply means I invest some amount of money for one time per deposit. If I chose RM 25 or I can even manually insert any amount that I want, the fund will be invested into the respective portfolio chosen.
Round-Ups works in the from a daily spending on user debit card where, for every small changes charged by your bank, it will be accumulate into Raiz app until it reach the threshold amount, for example RM 5 before being invested into the portfolio. For example, I buy a cup of coffee that cost RM 5.50, bank will deduct RM 6 from my account and the remaining RM 0.50 will be keep in Raiz before being invested to buy the Unit Trust.
Recurring is a scheduled deposit. I can set either I want it to be Daily, Weekly (can pick on which Day), Fortnightly (can pick Date) or Monthly (can pick Date) recurring deposit. The amount can also be picked on how much investor affords.
How long does it takes to Buy Units ?
The whole process can be tracked on Past section of the app. Once Deposit request have been made, Raiz will send the request to the registered Bank (Funding account) and the Deposit status in Past section will be in Pending.
After Bank approved the request and money have been transferred to Raiz, the status will changed from Pending to Processing. On the 2nd working Day — usually on the 2nd session of Bursa Malaysia trading, the Units will be successfully bought by the Fund Manager assigned by PNB and will be reflected in Raiz app.
As an example, if a Deposit request have been made on Monday before 10 PM (based on experiences), the Units will be bought on Tuesday at approximately 3 PM. If Deposit request have been made on Friday, the Units will be bought on Monday. From my experience overall it didn’t even took more than 1 day.
How long does it takes to Sell Units ?
Same as Buy Units, the process can be tracked in Past section of Raiz app.
Day 1 is the day which Withdrawal request is sent. Request to Sell will be sent by Raiz on the 2nd day and received at the same day. The fund will be transferred to the Custodian in the same day. The fund will be in Custodian account on the 3rd day, and the Custodian will transferred the withdrawal fund on the 4th day.
What is Market Returns ?
Market return simply is an indicator of how well daily performance of the portfolio that investor picked. Difference portfolio will have difference pattern of market return. Conservative is a low risk portfolio, thus the increment or decrement of market return is also low. On the other hand Aggressive is a high risk portfolio, thus the increment and decrement of market return will be high. Always keep in mind, the higher the risk, the high higher the return. Market return will change everyday. This is due to the difference movement of the unit price that also change everyday.
Assuming an investor deposits (Buy) an amount of RM 100 to be invested in Equity 3 that cost RM 0.9495/unit on that day. With RM 100, the investor will get 105.318589 units for Equity 3 fund.
If the price unit on tomorrow change to RM 0.9596, thus the market return will be RM 1.06 (RM 101.063718 — RM 100 (initial capital) ). If the price per/unit going down, say, RM 0.9392/unit, the market return will be -RM 1.08 (RM 98.915219 — RM 100). Market Return is merely like Unrealized Profits / Loss, whereby it’s just a Profits or Loss on paper before cash withdrawal is held.
What is Referrals ?
Referral section is where your bonus for referring Raiz to your friend is displayed. For every 1 person that use your invite code, you’ll get RM 5 when they starts investing. The RM 5 that you get will then use to buy the unit on the next day. The more your referrals, the more your units.
What is Withdrawn ?
Withdrawn is a section where it display the total amount of cash that has been withdrawn from your Raiz account since the account opening. The accumulation of withdrawal records.
What is Raiz Kids ?
Raiz Kidz is another additional features that were added into Raiz application. It enable for you to have some percents of your total investment for your kids profile, in the same account as the father, or mother account.
For example, say, you want to allocate 50% of the total investment, in this case from RM 293.62, then the kid will have RM 146.81 in their profile. This amount can be transferred to their own account once their age reached 18 years old. This feature is good as we know it’s hard for kids to start the habit of saving on their own, allocating our own saving for their future could do.
Vary Prices of ASN Funds (Equity 3, Imbang 2, Sara 1)
One thing to note here is as I mentioned earlier that the price for a unit of ASN Funds are varies everyday. Today the price per unit might be high, tomorrow might be low by some points difference. Investor who wanna get into Raiz investment need to know that the unit price for tomorrow will be announced on 12AM everyday except Saturday and Sunday because of Bursa Saham is closed on weekend. This is a small advantage that can give big returns in long term period where, unlike Fixed Price funds, ASN can give investors more units when they bought the unit at the low price.
BUT, if you want to deposit, you need to do deposit at least 2 hours before 12 AM or before 10 PM. If you deposit after the new price has been announced, your unit will not be bought on the evening when the market is open on the 2nd session, but on the next 2 day. For example today is Monday 7 PM, if you want to have your unit to be bought tomorrow at 3 PM, you have to deposit your amount on Monday before 10 PM. If you deposit after 10 PM or after 12 AM Tuesday, your unit will be bought on Wednesday 3 PM and the unit price on Wednesday shall applied, taking note of the uncertainty of high or low price.
When is the Financial/Fiscal Year End for ASN Funds ?
The FYE for ASN Funds is on 31 Mac of every year. About 1–2 weeks before 31 Mac, the business is put to halt for a period of time for ASNB to do balance sheet and calculate the dividends that will be distributed back to investors. The distributed dividends will be converted into units.
The bonus units can be seen reflected into the Raiz account on 1 April every year.
Is there any Administration charges?
Raiz is a platform that provide a place for small capital investors to start investing through exercising saving behavior. While PNB on the other hand is the fund manager responsible for accumulating our fund into buying Equities and Bond/Sukuk at Bursa Malaysia.
Raiz charged investor RM 1.50 per month for a total investment that is less than RM 6000 OR 0.025% for a total investment above than RM 6000 per month. Well, assuming total investment in a year is less than RM 6000, that means in a year you’ll be charged RM 18. To be able to counter the monthly administration charge, my advice is to keep on adding the saving from time to time when possible so when the Dividend distribution is announced, at least the Dividend is more than the monthly charge, a year would be more than RM 18.
Conclusion
With all the above, I think I’ve already covered most of the important things above. I truely believe that Raiz is a good platform for anyone that wants to restart their saving behavior again with all the savings are being invested into Unit Trust funds. I believe all of us know that saving money in the bank will give us nothing rather than small percentage of interest.
By buying Units regularly or whenever there’s some extra money, it’s expected to see the total investment growth at the end of the financial year. This could make the saving growth in the long term especially when the Dividend is announced by the PNB.
In the next article, I’ll share with you the performance of my saving after 3 months of using Raiz app to invest in Amanah Saham Nasional funds. Thanks for spending time here, and keep investing.
By the way, here’s my invitation links for Raiz registration, by using my link here, both of us will get RM 10 in the form of Units when you start investing;
