Recommended Long Term (5-7 years) Set and Forget Funds on M2U

[srrngugi]

Hi all,

I have RM20k which I am keen to invest in Unit Trusts on the M2U platform from any of their available fund houses. I am only 26 so not too risk averse but would prefer investing in one of these managed funds instead of building my own portfolio of stocks. Currently have my eye on the TA Global Technology Fund and Maybank Global Sustainable Equity-I Fund - MYR Hedged.

Does anyone on this sub have prior experience with this method of buying funds on M2U and have any recommendations for funds to have a look at? Alternatively, would be open to suggestions about investing my money on different platforms.

Many thanks in advance for the replies!

 

[hazelhope]

@srrngugi Forget local banks. They charge absurd fees.

 

[srrngugi]

@hazelhope There is a 1.5% sales charge. Would that be considered a lot?

 

[jtra5]

@srrngugi Not just that. Their funds are small, actively managed (shit chance of performing well), and have absurd ongoing management fees.

For RM 20k, you can consider experimenting with robo-advisors and US/UCITS brokers

 

[jtra5]

@srrngugi What’s their management fees and total asset sizes?

 

[srrngugi]

@jtra5 Info linked below:

TA Global Technology Fund - https://www.fsmone.com.my/funds/tools/factsheet?fund=MYTAGTF

Maybank Global Sustainable Equity-I Fund - MYR Hedged - https://www.fsmone.com.my/funds/too...ty-i-fund-myr?fund=MYMBGSEI&src=global-search

 

[continualseeker]

@srrngugi 3 type of fees usually occur and have to take note of when buying unit trust. One off fee when you purchase, sell fee when you exit, management fee which is charged directly to the fund every year and usually prorated.

Btw, have you heard or consider ETF? You still invest in a basket of fund which is more risk diverse at the same time being charged little.

 

[srrngugi]

@continualseeker Yes I’ve definitely heard of ETFs. I always just assumed the fees for ETFs were higher than unit trusts.
Which ETFs should I take a look at and on which platform should I buy them from? Btw, thanks for the explanation!

 

[continualseeker]

@srrngugi You can have a look at vanguard, on SP500 or nasdaq, can use IBKR. Then again it depends on what investing strategy you are interested at. There is also dividend portfolio but take note on the dividend payout tax

 

[solo81]

@srrngugi Usually VWRA is the answer.

 

[srrngugi]

@solo81 What's the best way to buy VWRA using my MYR? Would I need to trade via a Singaporean broker?

 

[izzdan]

@srrngugi Please do this. Check out Zietinvests on YouTube. He has a step by step video on how to invest in IS equities

Edit: *US not Islamic state

 

[solo81]

@srrngugi IBKR via Wise should be doable now that the latter supports an MYR account.

You could probably do it with a local broker that gives you access to the LSE, but the broker fees and stamp duty charged by the government is usurious.

 

[wiacaj]

@srrngugi If you look carefully, many of these funds buy a lot of ETFs themselves as a safe purchase.

You could cut the middle man and buy ETF yourself. It’s easily available.

 

[srrngugi]

@wiacaj Thanks for the advice! What platform do you recommend I purchase these ETFs directly?

 

[wiacaj]

@srrngugi I started around the same time as you about 23yo and I bought only US stocks because I was fearful of the weakness of ringgit that time. And I continue only buying US stocks including ETFs since then. It’s unfortunate but I’m thankful many of my investment is in USD.

I use cimb initially but I mostly use interactive brokers now.

SPY500 would be a good place to start.

 

[mariafrank]

@srrngugi Another good platform is saxotrader. They also have a daily podcast on Spotify and their platform is pretty powerful . I tried using Maybank’s trading platform but it’s kind archaic and clunky in design.

 

[arielrose]

@srrngugi Buy crypto and watch your 20k become a million in 7 years.

Okay, i'm kidding.

Or am i?

 

[heaven91]

@srrngugi Bank funds are so expensive. Better off investing in StashAway or buy ETF yourself haha

 

[srrngugi]

@heaven91 Yeah looks like that’s the general consensus in this post! Not a big fan of StashAway as I could probably buy the ETFs myself as you’ve mentioned. What platform do you recommend I use?