Does investing in stocks scare the living daylights out of you? It seems to scare many. According to an article in cnbc.com, a survey among Americans found that 61% of all adults perceived stock investment as “scary or intimidating.”
That’s a pretty scary survey result, don’t you think? 61% is a very high number. It is probably true in Malaysia too as only a small number invest.
The rest are either not interested, have lost money in the past or think it’s too time consuming as they’re too busy with other things to keep a watch on the stock market.
By the way, the operative term here is “invest”, not “trade stocks”.
Investing simply means doing due diligence on some potential stocks to buy, identifying one for the long term, buying it on a monthly basis without fail and after a couple of years, getting good returns on the investment.
With a good company, the investment returns are definitely higher than what one would get from a fixed deposit.
Assuming you have no time to conduct due diligence on the stocks you should buy, what’s the next best thing to do?
Well, contact friends who are selling unit trusts and tell them you want to buy. The only issue is, who is the best?
Will your friend be a long-term contact for our investment? Most unit trust agents do not last very long – that’s the reality of it.
Or you could consider StashAway and read up about how it is helping people invest. StashAway is an intelligent wealth management platform designed to build and protect your wealth, whether that’s RM5,000 or RM50 million. Their motto, “Investing like it should be.”
StashAway made its mark as Malaysia’s first digital wealth manager when it secured a capital market services licence from the Securities Commission Malaysia (SC) in November last year.
It started in Singapore, and in Malaysia it secured over 5,000 registrants within the same month it was launched.
StashAway co-founder and CIO Freddy Lim said the company enables investors to focus on long-term investment goals instead of reacting to market and media noise.
He said, “Firstly, StashAway offers individual investors portfolios that are tailored to the appropriate level of risk they should take based on their financial situation, investment horizon and risk preferences.
“Secondly, as the technology that runs StashAway’s intelligent investment framework makes decisions based on macroeconomic data points, and investor’s asset allocation is based on economic fundamentals and not noise created by financial markets.”
Let’s be very objective here. This is not a scheme to dream about earning double digit returns every year. StashAway offers all investors another avenue to invest some of our savings for better returns.
Again, it’s based on the portfolio you are most comfortable with. When you look at unit trusts for example, if you are very aggressive with equity-type funds, you may be gaining or losing a lot on paper in a short period of time.
However, as you continue the investment via cost averaging, you will soon see a more stable return because fluctuations in the stock market are a certainty.
This article first appeared in kopiandproperty.com
Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.