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BEST Invest Malaysia App By BIMB: An Honest Review - YouTube
Channel: Millennial Finance
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we'll be going in depth about the best
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invest app so that you'll know whether
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it's the right investment for you
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in today's video i'll be going through
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some of the key aspects in the best
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invest
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app we've gotten so many comments asking
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about a review for this app
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so today here it is make sure you stay
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to the end of this video so that you
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know if best invest is really
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the best we are not sponsored by bimb
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this is for entertainment purposes you
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need to do your own research before you
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invest
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your heart and money i've even put in my
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own money to test out this platform
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before i gave you guys a review the best
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invest app is under bimb investment
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which is wholly owned by bank islam at
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the first half of the year
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they had a virtual launch of this app
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and they actually invited us to be a
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part of it
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during the event they mentioned that
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best invest is a robo intelligence
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platform
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not a robot advisor like stashaway and
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wyatt invest
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your investment here is not automated or
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decided by an ai
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it's actually managed by a professional
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who manages the funds that hold in the
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best invest app
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more on this later when i go through the
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review step by step
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where we're going to start with the user
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experience the sign up process
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is very easy to do much like the robot
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advisor counterparts
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all they need is a bit of info from you
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and in just a few easy steps
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your account will be set up early on
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they had some issues where i couldn't
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really log into the app
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which is one of the reasons why we
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decided to delay this review their
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interface itself is very clean
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and it's easy to navigate through the
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platform on the investing side
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they allow you to set up goals such as
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saving up for a down payment for your
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house or car
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or even just a standard saving up for
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retirement this is a pretty cool feature
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because instead of just choosing whether
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you want a low medium or high risk
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investment
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you can choose your goals and it's fun
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to see the goal slowly being filled up
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i feel that this can make your
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investment journey more wholesome
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because you can see the progress of your
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monthly deposits
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this then leads us to the second and
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probably the most important part of this
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review
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which is their investments best invest
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has two main unique selling propositions
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in terms of their app they're sharia
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compliant and they're sustainable where
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they terminate
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sharia sustainability i know a lot of
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millennials like myself
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are aware of corporate social
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responsibility so this could be the
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perfect way for us to fill our
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portfolios
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let's take a quick look at what funds
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they invest in the best invest app
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has five funds that you can put your
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money into which ranges from low risk
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all the way to high risk i presume that
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they will automatically allocate this
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based on the goal that you set for
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example if you set the goal for
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retirement they probably go for higher
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risk portfolio
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versus saving for a car down payment
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will be a lower risk portfolio
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unsurprisingly all five of these funds
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are managed by bimb
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if you're looking for funds in let's say
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cmb or canada growth fund
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this is probably not the place for you
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two of these funds are rather low risk
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being the money market fund and the
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sukup fund since these are pretty
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straightforward and there's not much
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analysis to do on it
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i'll take a pass the other three funds
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are the ones that will dive deeper into
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it
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where they are split by geography being
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the malaysian
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asian and global fund to start things
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off let's look
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at their malaysian sharia esg equity
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fund the aim of this fund
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is to track the fbm klci which is a
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malaysian stock market
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and the msci all-world index what this
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means is that the fund is trying to
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replicate the malaysian stock market
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and the msci all-world index by
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investing in
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different equities that fit the bill of
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the sharia compliance and sustainability
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for those
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of you who don't know esg stands for
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environmental
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social and governance this company
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scored very highly on the scale
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over the past one year the malaysian
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equity fund
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has returned an amazing 14 but due to
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lackluster growth in the previous two
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years
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the three year return of this fund is
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only a cumulative 10
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we have to keep in mind though that the
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fbm klci
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has negative returns on the one and
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three year time scales
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with this in mind the fund has actually
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outperformed their benchmarks
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so this is a great job by the fund
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managers in terms of top holdings
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they hold some of our big glove makers
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such as kosan
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supermax and hartalega so they must be
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doing pretty well right other notable
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names that they hold in this fund
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includes nestle and a us-based
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pharmaceutical company that i really
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like
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named merck in terms of sectors the fund
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is very heavily invested
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in companies in i.t industrials and
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healthcare
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with most of its positions being in
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malaysian companies
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despite being named a malaysian equity
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fund they do hold
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smaller positions and businesses across
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the world with the main ones being from
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the us
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and japan overall i really like this
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fund
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but we do need to bear in mind that the
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malaysian stock market will most likely
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underperform its u.s and chinese
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counterparts unfortunately our malaysian
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stock market
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hasn't really performed to that levels
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over the past few years
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but here's to hoping i guess it's a nice
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feeling to know that we're owning
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businesses from our very own country
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when you also factor in that these
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companies score very highly on the esg
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scale
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i guess it's not so bad after all to
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have slightly lower returns
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next up we have the asia pacific esg
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equity fund which seeks to track
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the msci all countries asia pacific
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index
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this includes countries such as
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singapore hong kong
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australia and of course our very own
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malaysia
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in terms of performance this fund isn't
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quite performing
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quite like the malaysian one its one
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year return is
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only seven percent which i guess is
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considered okay
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the bad thing though is that since its
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inception over two years ago
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this fund has returned negative six
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percent
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the index that this fund is supposed to
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track is actually
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positive on both time scales meaning the
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fund managers
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in bimb is actually underperforming when
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a fund
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is meant to track an index but fails to
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do so
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we call it a tracking error usually it's
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completely normal to have small tracking
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errors in everything
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however not to this large scale so this
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is a big concern in terms of their
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holdings
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i'm actually not very familiar with a
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lot of these companies
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other than samsung and rio tinto which
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is actually a mining company based in
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australia
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it seems that the concentration of this
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fund is much higher than the malaysian
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one
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where the top 10 stocks hold 30 percent
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of the entire portfolio
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this isn't necessarily a bad thing but
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when your fund is so concentrated like
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this
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you better make sure that your top
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holdings are performing well they're
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also missing out on some very big names
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in the asia pacific region
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such as 10 cent softbank and taiwan
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semiconductors in their top 10 holdings
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i'm pretty sure that all three of these
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companies are sharia compliant
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so maybe they missed out because of
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their poor esg scores
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i don't know the fund holds nearly 40
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percent of
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all the investments in companies based
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in japan maybe it's because japan is one
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of the biggest countries in the asia
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pacific region
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but definitely not by that much right
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there are still many many large
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economies in this place
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such as hong kong and australia just to
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name two overall
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i think that this fund is facing some
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serious tracking issues
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which means that i won't be really
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putting my money into it until i see
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things improving over the last six
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months i see some improvements in terms
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of the returns but i still need to give
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it a bit more time to see if we can turn
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things around i really like this
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geography because i believe that the
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asia-pacific region is poised for
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nice expansion in the coming few years
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it's possible that many companies
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in the asia pacific region is scoring
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very poorly on the esg scale
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meaning the fund had to omit them from
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their investments if this was the case
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i would much rather take my money and
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put it somewhere else finally
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we have bimb's global dividend fund
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this uses the msci all will index as a
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benchmark meaning you'll have exposure
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to companies from all over the world
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performance wise
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this fund is performing okay with three
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percent returns in the last one year
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and 12 returns over the last three years
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still it's facing some of the tracking
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issues that i mentioned with the asia
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pacific fund
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since its inception over four years ago
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the global dividend fund has actually
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returned a cumulative
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32.6 percent which honestly if you see
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it as a standalone
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is very very good only when you look at
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its benchmarks
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51 return over the same time period
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do you realize that the fund is really
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underperforming what it's supposed to
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track
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however this fund does give a nice juicy
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dividend
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paying 6.36 in march of 2020.
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that's more than what asb gave this year
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i'm not really sure if they include this
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6.36
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dividend as part of their entire returns
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because if they don't
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then the fund is actually performing
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really really well even if you ignore
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the tracking error part holdings wise
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there are again
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many in the top 10 that i'm not very
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familiar with one company that i
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actually noticed
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is etsy which is actually a very fast
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growing e-commerce company based in the
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us
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with a lot of potential behind it in
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fact i've invested in etsy in my
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personal
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portfolio i really love this company as
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an investment
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but i don't really see how it fits in to
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the global dividend part of this fund
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etsy is a non-profitable e-commerce
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company that
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definitely doesn't pay out dividends in
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terms of sectors
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they have their biggest investments in
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health technology
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technology services and electronic
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technology they basically have
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nearly half of the entire portfolio in
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technology companies
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which is an industry that i actually
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really like this begs the question again
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because tech companies aren't known for
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paying big
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dividends as an example companies like
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apple and microsoft
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do pay dividends but at a very very low
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rate
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even below one percent i'm not really
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sure where the funds payouts are coming
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from
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because it doesn't seem that they're
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passing on dividends from the companies
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that they invest in
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these companies definitely do not pay a
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dividend of six percent per year my
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guess is that the fund
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sells a portion of the investments every
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year and pay this out as dividends to
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the investors
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being a global dividend fund most of the
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companies that this fund invests in
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is unsurprisingly from the us less
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surprisingly though is that in second
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place
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it's japan let's say i invested 50
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of my money in the asia pacific fund and
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50 of my money in this global dividend
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fund
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in total i would have a 30 allocation to
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japan
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the biggest of any country by far i'm
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not really sure if all of these
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companies are really seeing something in
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japan that i'm not
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maybe the japanese economy is finally
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recovering
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and those people who invested in 1980
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are finally going to break even
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i definitely like certain aspects of
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this funds but there are still some
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lingering questions
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most notably how is this fund paying
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such high dividends when a lot of its
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investments are in the tech sector
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and secondly why is there such a large
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allocation in japan
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is it just because a lot of japanese
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companies score very highly on the esg
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scale
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that's very possible let us know down in
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the comments down below if you know this
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to summarize the entire investment
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portion
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it seems that only the malaysian equity
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fund has been performing
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on par over the last year don't get me
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wrong the global fund has also performed
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very well but it's still lagging behind
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its benchmark
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now let's take a quick look at the fees
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and deposits
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the minimum amount that you need to
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invest with best invest
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is only rm10 which is great i've seen a
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lot of their promotional videos trying
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to bring out this as a selling point so
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it's
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obvious that they're targeting
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millennials like ourselves since
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stashaway and wyatt invest
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also have very low minimum deposits this
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may not seem like a big deal to you
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however
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the fact that best invest allows you to
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invest a little amount of money
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in a traditionally rigid product which
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is a mutual fund is a step in the right
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direction
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stashway and wahey invest invest in ets
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which are actually very common to invest
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with small amounts the best invest app
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allowing you to do this for a mutual
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fund is actually a differentiator
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fees wise they charge between 1.5 to 1.8
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percent for the equity funds with their
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sukup and their money market funds
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charging slightly lower
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compared to their robo advisor
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counterparts these fees are actually
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double that however these really can't
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be compared apple to apple
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because these funds are managed
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professionally as i mentioned
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earlier this means that there are fund
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managers behind this
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who actually go through your investments
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every single day
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which explains the slightly higher fees
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if you want to buy these funds
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outside of the best invest app such as
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on fund supermarket
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there's actually a sales charge of
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around 1.5 percent
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this means that bimb is actually waiving
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the sales charge for
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all customers on the best invest app in
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the mutual fund world this is actually
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very attractively priced i guess as
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investors
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we don't really care how cheap it is
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compared to others because at the end of
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the day
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all we want to know is how much of the
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returns we will get
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after fees i think that the term sharia
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sustainability
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is heading down the right track and can
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potentially win over
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many millennials personally i also want
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my investments to be doing very well on
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the esd scale
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so that we can have a sustainable future
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still
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i wouldn't really tolerate a much much
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lower return than what the market is
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providing
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there are plenty of sustainable
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investments in the market that are
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actually doing very well
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with companies in the renewable energy
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and electric vehicles
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shooting up a lot recently i think that
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bmb has got the right idea with the best
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invest app
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however they need to put a bit more work
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into their funds before i consider
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putting more money in
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currently i've only got about 100
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ringgit on this platform that i put in
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early in around april or may
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i'll be tracking the performance of
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these funds every quarter to see if
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they're doing better
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and it's when i'll put more money into
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it let us know down in the comments
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below
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have you tried the best invest app and
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if you did what do you think about it
[842]
what are your options aside from best
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invest watch this video on a review
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of stashway wyatt invest and my deal or
[850]
if you watched that already you can
[852]
watch
[852]
this video about 4 ways you can invest
[854]
your money in malaysia with as little as
[856]
100 ringgit see you in the next one
[859]
peace out
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