Why many Malaysians never make the leap from saving to investing
YTL Power International executive director Hann Yeoh says the hesitation is often rooted in uncertainty rather than a lack of access to investment products.
Most Malaysians grasp the significance of saving, yet a significant number remain reluctant to venture into investing. YTL Power International's Hann Yeoh, executive director, attributes this hesitation to uncertainty rather than a lack of investment opportunities. "Not many people truly comprehend investments or even dare to explore them," Yeoh disclosed to FMT.
Several factors contribute to this hesitance, including the perception that investing is exclusively for the affluent and the fear of making costly errors due to insufficient understanding of investment products. Yeoh emphasized that first-time investors should be encouraged to commence with modest investments, gradually build confidence, and familiarise themselves with investment products.
To address these challenges, Ryt Bank has introduced Ryt Invest, a digital investment platform crafted to enhance accessibility and comprehension, especially for newcomers. In collaboration with Opus Asset Management, which has overseen RM10 billion in assets for two and a half decades, Ryt Invest offers access to professionally managed investment solutions via an intuitive digital banking application.
A primary objective of the platform is to alleviate the apprehension surrounding large initial investments, enabling users to commence investing with as little as RM1. Ryt Invest presents three tailored investment options: SavePlus, Income, and Gold, each catering to distinct financial objectives and risk tolerances. SavePlus is a Sharia-compliant alternative focused on investment-grade bonds for those inclined towards lower-risk strategies.
Income provides diversified exposure across various asset classes for those targeting potentially greater long-term returns, while Gold exposes investors to the widely recognized store-of-value asset. In addition to lowering entry barriers, Yeoh underscores the importance of education in fostering confidence among investors. Ryt Bank has incorporated Ryt AI into its customer experience, empowering users to inquire about investment options, grasp essential features and risk levels, and access educational resources.
"With Ryt AI, users can pose questions such as, 'What sets Ryt Invest apart?' or 'Could you elaborate on the Income Fund?' It simplifies complex information in an approachable and conversational manner, enabling users to make informed decisions. Yet, Yeoh reaffirms that investment decisions and fund management remain under the purview of professional fund managers, with AI functioning as an educational aid, not a decision-maker.
Yeoh's ultimate goal extends beyond fostering investment participation; it revolves around cultivating healthier financial habits and bolstering Malaysians' confidence in managing their financial future. "The most crucial piece of advice? Begin with the smallest possible step and gradually learn as you progress. It's an exhilarating journey, but the paramount aspect is to commence," Yeoh concluded.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
