Here’s the latest option for Malaysian investors keen on utilizing robo-advisors.
Updated: Jun 24, 2022
Kenanga Investment Bank Berhad (“Kenanga”) launched Kenanga Digital Investing (“KDI”), market’s latest fully automated Artificial Intelligence (A.I.) driven robo-advisor designed to simplify how Malaysians save and invest.
Licensed by Securities Commission Malaysia, the KDI platform offers two convenient products – KDI Save and KDI Invest.
KDI Save allows users to earn daily returns on their savings with no lock-in period and zero management fees. From now till end of the year, KDI Save offers a market leading 3.0% fixed interest rate on a promotional period.
- Promotional Return Rate: 3.0% p.a.
- Base Return Rate: 2.25% p.a.
- Return Rate Tenure: until December 31, 2022
- Investment Amount: Promotional Return Rate for any investment amount up to RM200,000 (investment above RM200,000 entitled to base return rate of 2.25% p.a.)
On KDI Invest, customers can grow their wealth with access to global investment opportunities through US-listed Exchange Traded Funds (ETFs) at one of the most competitive fees in the market.
“KDI is another step in our vision to make investing accessible to everyone. With initial investments as low as RM250, customers can invest in global equities. We are proud to launch KDI Save, a cash management product with one of the highest returns in the market, while KDI Invest provides gateway to the global markets at an affordable fee,” ~Ian Lloyd, Group Chief Digital Officer, Kenanga Investment Bank Berhad.
Robo-advisors aim to make investing simple by removing the guess-work in stock and fund picking, but not all robo-advisors are the same. KDI employs technology to monitor global markets and to react to new investing opportunities. The technology analyses thousands of data points each day, incorporating information from across continents and asset classes, to develop investment portfolios, without the influence of human emotions. These portfolios aim to generate sustainable returns while managing risk.
“KDI’s innovative portfolio design is a game-changer for wealth management. The system selects suitable portfolios to help customers achieve their investment goals in line with each customer’s personal risk preferences. The A.I. monitors global market conditions and rebalances customers’ portfolios automatically, giving them peace of mind that their portfolio is being taken care of around the clock.” ~Ian Lloyd, Group Chief Digital Officer, Kenanga Investment Bank Berhad.
Portfolio assets are allocated using AI following the principles of Modern Portfolio Theory
Dynamic automatic rebalancing by AI when there’s significant deviation from targeted asset allocation
AI based downside protection strategy where in event of increased market volatility, assets are automatically switched into low-risk assets to protect investments
KDI Invest is completely free for investments below RM3,000 while investors above that limit will be charged a management fee between 0.3% to 0.7% per annum, making it one of the most competitive robo-advisor platforms in the market today.
| Amount invested in KDI Invest | Fee Per annum |
|---|---|
| RM3000 and below | 0.00% |
| Above RM3,000 to RM10,000 | 0.70% |
| Above RM10,000 to RM100,000 | 0.60% |
| Above RM100,000 to RM250,000 | 0.50% |
| Above RM250,000 to RM500,000 | 0.40% |
| Above RM500,000 to RM 2,000,000 | 0.30% |
| Above RM2,000,000 | RM6,000 flat fee |
Pros
- Easy entry for new investors just starting out (Min investment RM250; 0% for below RM3k invested)
- Max fees capped at RM6k p.a. for investment value >RM2m
- Kenanga Digital Investing available on both website and app
Cons
- Lack of information on what ETFs are within the portfolio
- Lack of transparency on the rebalancing & reoptimisation process
- Asset allocations may swing significantly at KDI’s direction (e.g. aggressive portfolio during market downturn is holding 10% cash + 90% fixed income)
For more information or to get started with Kenanga Digital Investing, visit https://digitalinvesting.com.my/
Tip: Use Referral Code=100131 to get free RM10 for investing RM250 in KDI Invest ETF
How is your experience using Kenanga Digital Investing?
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