PETALING JAYA: Rakuten Trade Sdn Bhd has launched Raku-Invest, a service which enables access to US equity markets, to replicate the success of Tsumitate Investing in Japan.
Rakuten Trade CEO Kazumasa Mise said Raku-Invest is about enabling and democratising access to the US equity markets.
“With the US stock market capitalisation representing about 40% of the total global stock market capitalisation, it’s a significant and potentially lucrative market for investors. However, the barriers to entry for Malaysians can be challenging.
“Raku-Invest is a localised version drawing from the success of Tsumitate Investing offered by Rakuten Securities Inc (RSec) in Japan. It has performed incredibly well in Japan, appealing to young, beginner investors and we hope it will do the same in Malaysia,” Mise said at a media briefing today.
Rakuten Trade equity sales head Vincent Lau said the Raku-Invest approach reduces the impact of ringgit fluctuations and helps people save steadily, especially during uncertain times. “The monthly regular investing comes in, the Raku-Invest; it removes the fluctuation of the currency as well, basically, it’s going to a monthly investment. So I think that’s very timely,“ he explained.
He said the ringgit would probably recover to 4.50 to 4.60 to the US dollar.
Tsumitate Investing involves regularly investing small amounts of money over time instead of a lump sum. It is a strategy that aims to reduce the impact of market volatility on investments.
With Raku-Invest, investors can initiate automated recurring trades for US shares, American Depositary Receipts and exchange-trade funds from RM100. It will automatically continue to trade at pre-selected scheduled periods – either weekly or monthly – without human intervention.
For example, investors can schedule their Raku-Invest purchase of Advance Micro Devices shares monthly, starting today with an initial investment of RM100.
Raku-Invest is a way for Malaysians to approach investing that will be particularly beneficial for first-time traders entering the US markets. It supports a Dollar Cost Averaging investment strategy, promoting the concept of “Accumulated Investing” for novice investors.
Rakuten Trade said it removes emotions and instead promotes disciplined investing by committing to a regular trading schedule. The focus on long-term goals, despite market fluctuations, helps to mitigate the impact of market volatility and reduces the risk of investing a large sum of money at an inopportune time, it added.
Tsumitate Investing offerings in Japan have yielded growth primarily in novice traders and continue to record robust performance across several key indicators, reflecting sustained interest and participation in the market.
As at May 30, almost 20% of all RSec US equity traders trade via Tsumitate Investing reflecting a continued incremental growth of almost 5% month-on-month of which more than 12% are first-time US investors.
“Raku-Invest is poised to empower Malaysians with the tools and knowledge needed to build wealth intelligently and securely,” said Mise.
At the time of launch, more than 1,200 US shares will be tradeable for Raku-Invest services, with plans for expansion in the future.
Rakuten Trade said it is committed to boosting acquisition and trading among the M40 segment in Malaysia and positioning itself as a market innovator by focusing on services appealing to beginner investors, distinguishing Rakuten Trade from its competitors.
Meanwhile, Lau expects the FBM KLCI to reach 1,700 points by the end of the year. He noted there are plenty of stocks to trade locally with many opportunities. He added that foreign funds have returned to the local market, albeit not in a big way, directed to big-cap stocks.
