A simple, fool-proof plan to make my (future) child a millionaire
"What's the simplest, yet fool-proof way to make your child a millionaire ($1,000,000)?"
Recently, I asked this question to a friend - so I figured it'd be fun to do this with you too.
Give this a thought, I'll show you my plan at the end of this newsletter.
Now, 2 quick (and important) updates:
Firstly, I've recently become an Associate Member of the Financial Planning Association of Malaysia (FPAM)!
This means I am about halfway through my Certified Financial Planner (CFP) journey - can't wait to share many more takeaways with you!
Secondly, in my CFP class, I've been fortunate to learn about Estate Planning, including will-writing, directly from Mr. Azhar, the group CEO of Rockwills.
Let me tell you - this is one of the most interesting classes in my journey so far!
Next, back to our question:
"What's the simplest, yetĀ fool-proofĀ way to make your child aĀ millionaire ($1,000,000)?"
"Invest loh" my friend said
Investing is one way to build 1 million for your kids, but it is certainly NOT fool-proof.
- Say, from the timeĀ your kid is born,Ā you invest RM250/month in an investment that generates an average return of 8% every year.Ā That'd take close toĀ 43 yearsĀ to hit a million.
- What if... you pass away from an accidentĀ (*touch wood*)Ā after the first year investing?Ā Your kid would be left with some of your invested funds, but definitely very far off from RM1,000,000.
Don't get me wrong, PLEASE invest for your kids.
My key message here is that investing is not fool-proof... so what is?
My simple, yet fool-proof way to build RM1,000,000 for my (future) child:
Get a life insurance policy with RM1,000,000 coverage, naming my child as the beneficiary.
Simple as that. Here are why this is fool-proof:
- As long as I pay for the policy,Ā I can beĀ 99% certain*Ā that my child will get the payout ifĀ I pass away. It could be tomorrow, next month, or 10 years later - the timing risk is eliminated.
- *An exclusion is if su(i)cide happens within a certain window of time, usually 1 - 2 years after the policy is issued.Ā (p.s. YOU MATTER.Ā Seek help, okay?)
- It is also affordable. As an example, at 31, I can buyĀ a RM1,000,000 term-life insurance coverage onlineĀ for RM233.95/month, locking in the price for the next 20 years.
- Finally, if I pass away,Ā payout from life insurance bypasses any court procedures. This meansĀ my child will be able to access the money quicklyĀ to sustain their life.
In my opinion, life insurance is one of the most affordable and reliable tools to leave wealth to your loved ones, but...
But my friend foresees a problem:
"What if your child is stillĀ too youngĀ to make good use of the RM1,000,000?"
That's a valid concern. This is where 'Trust' comes in.
In estate planning, a Trust is a legal arrangement where one person transfers his assets to a 3rd party (a.k.a. a Trustee), who manages them for the benefit of the beneficiary.
Examples of companies that offer Trust services are Rockwills Trustee and RHB Trustee (note: I am not affiliated with them).
Simply put, for my case:
- I'd set up a Trust, placing the RM1,000,000 life insurance policy under the TrustĀ - with specific instructions.
- When I pass away, my Trustee would receive the RM1,000,000 payout. Ā
- The Trustee would distribute the RM1,000,000 to my child according to my instructions.Ā It could be something like:
- "Every month, pay RM3,000 to my child's guardian for living expenses."
- "Reward my child with RM10,000 if he achieves 10 As in SPM."
- "Distribute everything to my child once he hits 30 y/o."
Doing so ensures that the money will be spent wisely until my child becomes mature enough to manage it on his own.
Final note:Ā
I hope this newsletter has been helpful - especially if you are a parent who is planning to leave something for your child.
What I shared with you today is just a glimpse of what is possible when we combine financial tools like insurance and Trust.
And we are barely scratching the surface!
Stay tuned, as I will share more useful insights like this in my upcoming newsletters!
--
āQuestion: Do you find this newsletter useful? Feel free to share your thoughts with me by leaving your comments below!
Disclaimer
Not financial advice. Sharing is based solely on my own research. Do your own due diligence and seek guidance from a licensed financial planner.
Guide: When to deploy your extra cash into the stock market?
Recently, a good friend of mine asked me:
"I have some extra 'bullets' (cash)... but given the stock market at an all-time high (ATH),Ā I am not sure if I should deploy them right now. Any thoughts?"
That is a valid concern.
Timing the market is extremely difficult to do - but let me share the next best thing with you:
How IĀ spotĀ ideal risk-rewardĀ opportunities:
Personally, I have my fixed monthly investing routine. At the same time, I always have some extra 'bullets' ready in case the market drops.
But how much of a 'drop' would it take for me to consider deploying my 'bullets'?
The short answer: I look at past data.
It's pretty simple - let me show you how:
The picture above shows you the annual return of the US stock market, the S&P500, over the past 45 years (1980 - 2024).
Now, I want you to focus on the red dots. These dots reveal the largest decline each year.
What can you observe from the red dots?
Here are my insights:
- Purple zone:Ā It is common to see a decline of <20% inĀ the S&P500 in a year. That happened in 36 of the pastĀ 45 years (80%).Ā
- Green zone:Ā Meanwhile, aĀ decline of >20% only occurred inĀ 9 of the past 45 years (20% of the time). For me, that's the ideal risk-reward zone to deploy my bullets in the S&P500.
- Simply put, our 'bullets' have a higher chance of delivering more meaningful returnsĀ (relative to risk taken)Ā the closer we get to a 20% drop.
In my opinion, using past data is one of the simplest ways to gauge if it is a good window to deploy your extra cash.
But it is not the easiest to execute in real life.
Caveat: The data shown above is specifically for the S&P500.Ā Please gather your own data if you are curious about other markets.
Psychological Challenges:
- You might feelĀ FOMOĀ and deploy your bullets too early.Ā (Confession: That was me)
- You might beĀ too afraid to deploy your capitalĀ when the market drops >20%. By then, social media would have painted the sentiment as ifĀ it isĀ the end of the world.
- Since big declines are rare,Ā you mightĀ notĀ see the drop you want. You will need to be at peace with yourĀ 'bullets' not being invested.
- eg. In 2023 and 2024, the largest declines in theĀ S&P500 were onlyĀ 10% and 8% respectively.
Ultimately, I'd say one will become better with more experience with stock market fluctuations.
My approach:
My biggest challenge is that I can't stand seeing my 'bullets' not invested.
So these days, I do two things:
- I still investĀ monthly regardless of market conditions (Dollar Cost Average)
- I save my 'bullets' inĀ low-risk fundsĀ to generate returns while waiting for market opportunities. That helps with my psychology.Ā
Question: Do you have your own approach to deploy your 'bullets'? Feel free to share with me by leaving your thoughts in the comment section!
Disclaimer:
Not buy/sell advice. Do your own due diligence before investing.
How to research for quality Malaysia REITs? My top 5 steps, revealed! (via moomoo app)
Real Estate Investment Trusts (REITs) are companies that own income-producing real estates, such as shopping malls, offices, warehouses, and hospitals.
In Malaysia, publicly-listed REITs have been well-received among dividend investors thanks to REITs' tendency to pay a competitive dividend yield:
As a dividend investor, Malaysia-listed Real Estate Investment Trusts (REITs), such as IGB REIT and Axis REIT make up an important portion of my Freedom Fund portfolio:
In this post, let me walk you through 5 key steps on how I use the handy features within the moomoo app to research for REIT!
RELATED POSTS:
[š p.s. Exclusive 2x RM20 cash coupons for No Money Lah readers! Use promo code 'NML01' when depositing to claim your exclusive reward. Refer to 'Account Opening & Deposit Promotion' section of this article to find out more!]
My 5-step approach to REIT research (via moomoo app)
Personally, if I were to start from zero, I'd generally start my research from a top-down approach with a few key questions:
- Entire sector: How is the REIT sector doing compared to other sectors?
- Within the sector: Which REIT is the top-performing Malaysia REIT?
- REIT vs REIT: How is a particular REIT doing compared to another?
- Individual REIT study: How good/bad are the fundamentals of the REIT?
- Is a REIT overvalued/fairly valued/undervalued?
For that, I find the suite of features within the moomoo app very handy in my research.
Moomoo MY offers beginner-friendly stock research tools
The features & tools on the moomoo app are also very beginner-friendly, as there are easy-to-understand explanations for the financial terms & indicators in the app:
Step 1: How is the REIT sector doing compared to other sectors?
**Before we start, it is important to note that the tools & features that I show below can be used for stocks from other sectors as well.**
To begin, open the moomoo app, select 'Markets' and select 'MY' which indicates the Malaysia stock market:
Feature #1: Heat Map
With the Heat Map feature in the moomoo app, I can see how, as a whole, the REIT sector performs relative to stocks from other sectors in Malaysia.
- Step i: Select Heat Map, and change the view to list view.
- Step ii: Under 'Filter', select 'YTD' which will show us the Year-to-Date performances of each sector:
- Step iii: Sort the performance from highest to lowest:
From this, we can see that the entire REIT sector has been showing a positive Year-to-Date (YTD) performance of 11.62% in 2024:
Step 2: Which REIT is the top-performing REIT?
Next, I'd also like to find out which REIT is the top-performing REIT Year-to-Date.
Feature #2: Compilation of stocks within the same sector
To do so, select 'Real Estate Investment Trusts' from the Heat Map:
- Sort 'YTD' from largest to lowest to view the best-performing REIT year-to-date (YTD).
As of the time of writing this article (Sept 2024), REITs like Pavilion REIT (+26.58%), and IGB REIT (+24.64%) have been outperforming the return of the entire REIT sector (11.62%) year-to-date.
- Sort 'Market Cap' from largest to lowest to view the largest REIT by market capitalization.
Generally, companies with a larger market cap tend to be more established relative to companies with a smaller market cap.
Step 3: REIT vs REIT: How is a particular REIT compared to another?
Want to compare which REIT is better in terms of their dividend yield, and other fundamentals like Earnings Per Share (EPS) and Net Margin?
'Compare' is a powerful feature in the moomoo app that allows me to compare up to 7 stocks side-by-side.
Under 'Compare', I can have all important insights of multiple companies at a glance, such as Dividend Yield, financial indicators, and valuation indicators.
Feature #3: Side-by-side stock comparison
- Step i: Start by selecting a REIT that you'd like to compare. For this demonstration, I'll be selecting IGB REIT.
- Step ii: Select the 3-dot button at the bottom right to activate the expanded menu. Next, select 'Compare'.
- Step iii: Use the '+' icon to add up to 6 other REITs for comparison. For this example, I'll add Pavilion REIT (PAVREIT) and Atrium REIT.
We can get many important insights from the 'Compare' feature. Some key insights that I look for include:
- Price trend comparison over different timeframe (1/3/6-month, 1 & 3-year, and YTD performances)
With this, I can compare the performance of all 3 REITs from a shorter time frame, or even for the past few years.
From a 3-year price trend timeframe, IGB REIT is the top performer among all 3 REITs.
- Dividend yield TTM (Trailing 12-month)
Dividend yield TTM indicates the dividend yield (%) after taking into account of the distribution for the past 12 months.
Atrium REIT comes out top in terms of yield (5.76%), follow by IGB REIT (5.17%) and PAVREIT (3.78%).
- Valuation indicators like Earning-Per-Share (EPS)
EPS measures a company's profitability per unit of the company's outstanding shares.
Generally, a high EPS indicates greater value because investors tend to pay more for a company's shares if they think the company has higher profits relative to its share price.
IGB REIT comes top with the highest EPS among 3 REITs.
- Financial indicators like Return of Equity (ROE), Net Margin, Debt to Asset, Current Ratio
On it's own, financial indicators may not mean much, but there are many insights that we can gather by comparing companies side-by-side.
- To start with, among 3 REITs, IGB REIT has the highest Return on Equity (ROE), which signals that IGB REIT uses its shareholder's equity more efficiently to generate income.
- Next, IGB REIT also has the highest Net Margin, which means it is making the most in terms of net profit per dollar of revenue gained.
- IGB REIT also has lowest Debt to Asset, which indicates that only 26.66% of the assets own by IGB REIT is financed by debt, with the rest owned by shareholders.
- Finally, IGB REIT has the highest Current Ratio of 1.16. A current ratio 1.16 means that IGB REIT has 1.16x more in current assets (eg. cash, short-term receivables), which is enough (>1.0) to cover its short term liabilities (short-term debt).
Step 4: Individual REIT study
In Step 3, we've compared REITs side-by-side. Let's look at how we can use features within the moomoo app to conduct research on an individual REIT.
For this study, let's use IGB REIT, which has displayed an overall competitive dividend yield and decent financial health in Step 3.
Feature #4: Stock insights within the moomoo app
Start by searching for IGB REIT in the moomoo app. Then, select 'Company'
A few key insights that I'll normally look at are:
- ļ¼1) Dividend payout consistency or Dividend growth
As a dividend investor, I prefer REITs with a consistent dividend payout, even better are those with a track record of growing their dividends.
With IGB REIT, it has raised its dividend per share (DPS) for the past 2 years since recovering from the pandemic in 2021:
- (2) Company overview
It is also important to know what does a company do while doing a research.
IGB REIT manages 2 retail malls in Klang Valley, namely Mid Valley Megamall and The Gardens Mall.
- (3) Financial strength
Finally, I like to dive into the financials of a REIT. For this, I sort the financials on an 'Annual' basis:
(i) EPS: IGB REIT has been showing strong earnings recovery after the pandemic, which is encouraging for a REIT managing retail malls.
(ii) Net margin: IGB REIT has also shown an increase in net margin post-pandemic, indicating rising profitability.
Step 5: Is a REIT overvalued or undervalued?
To find out if a REIT is overvalued, fairly valued, or undervalued, I usually like to compare its share price to Net Asset Value (NAV) Per Unit:
- NAV Per Unit= (Total Asset - Total Liabilities)/Shares outstanding
In general:
- REIT share price > 3x NAV Per Unit = Overvalued
- REIT share price > NAV Per Unit, but <3x NAV Per Unit = Fairly valued
- REIT share price < NAV Per Unit = Undervalued
How to get NAV on moomoo app?
Let's find out if IGB REIT is over or undervalued:
- Step (i): Find out the total shares for a REIT.
- Step (ii): Deduct Total Assets and Total Liabilities to get Net Asset
Using the latest quarter (Q2 2024) available as reference, IGB REIT has a total assets of RM5.5B and total liabilities of RM1.47B.
Hence, the latest Net Asset Value (NAV) of IGB REIT is RM4.03B.
- Step (iii): Calculate Net Asset Value (NAV) per unit
NAV Per Unit of IGB REIT = NAV/Shares outstanding = RM4.03B/3.61B = RM1.11/unit
As of 10/9/2024, IGB REIT's share price is RM2.04. This makes the share price larger than IGB REIT's NAV per unit of RM1.11 (Price > NAV Per Unit), BUT lower than 3x NAV Per Unit of RM3.33 (Price < 3x NAV Per Unit).
Hence, we can conclude that IGB REIT is currently fairly valued and we can make our investing decision accordingly.
Quick Guide: How to buy your first stock via moomoo app
Looking to place your first stock, REIT, or ETF trade on the moomoo app?
Here's a quick guide on how to place your trade:
- Step (i): Search for the stock that you'd like to buy, and select 'Trade'.
- Step (ii): Choose the order type for your trade. The moomoo app has a suite of basic to advanced order types, alongside the explanation of how each works.
- Step (iii): Select your trade quantity.
- Step (iv): Review the amount needed for the trade. Ensure you have enough cash to place your trade under 'Max Qty to Buy (Cash)', or enough buying power if you trade on margin under 'Max Qty to Buy (Margin)'.
- Step (v): Proceed to place your trade by clicking the 'Buy' button.
Verdict: Make stock research a breeze with the powerful tools & features in the moomoo app!
Having used Moomoo MY since its launch in early 2024, I find the moomoo app to be one of the most feature-packed, yet user-friendly investing platform that I've used so far.
I hope this walkthrough of my REIT research showcase inspires you to explore the features in the moomoo app to improve your investment research process!
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Moomoo Securities Malaysia Sdn. Bhd. (āMoomoo MYā). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
I didn't trust Moomoo Malaysia (MY), until I learned thatā¦
You've probably come to this article as you are unsure if you should use moomoo MY as your go-to platform to build your investment and trading portfolio.
Over the past 1 year since its launch in Malaysia, I've received many inquiries on moomoo MY.
In today's post, I'd like to address the most-asked question of all:
Is moomoo MY a trustworthy and reliable platform to invest and trade stocks?
In this post, I'll focus my research on the reliability of moomoo MY as a trading platform - let's go!
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Highlights: I didn't trust Moomoo, until I learned that...
- It is a locally-regulated broker in Malaysia: Moomoo MY is regulated by the Securities Commission Malaysia (SC). This ensures that moomoo MYās operation and business are conducted within the rules set by the authority to protect Malaysian investors.
- My funds in moomoo MY are safe & protected: Moomoo MY clientsā fund is protected by Capital Market Compensation Fund (CMC Fund), allowing me to claim up to RM100,000 on eligible Malaysia securities/assets in the unlikely event that moomoo MY is unable to pay clients due to bankruptcy or fraud.
- It is owned by a publicly-listed company: Moomoo MY's parent company, Futu Holdings is publicly listed in the US (NASDAQ: FUTU) with a market cap of over USD 16 billion as of Financial Year (FY) 2024.
- Futu Holdings is a strong brand & reliable brand for securities trading: Aside from Malaysia, FUTU has a growing & strong presence in the US, Canada, Australia, Japan, Singapore, and Hong Kong, with over 25 million global users.
What is Moomoo Malaysia (MY)?
Moomoo MY (registered under the name Moomoo Securities Malaysia Sdn. Bhd.) is Malaysia's top one-stop trading platform that offers access to the stock market in addition to the most updated financial news, investment education, and community learning.
Its parent company, Futu Holdings, is listed in the US stock market (NASDAQ: FUTU).
Who are FUTU largest shareholders?
Founded in 2007, Futu Holdings is listed in the US stock market (NASDAQ) in 8th of March, 2019.
As of March 2025, FUTU 2 major shareholders are the CEO of FUTU, Mr Leaf Hua Li (36.6%), with backing from Tencent Holdings (20.55%) - the largest publicly-listed company in Hong Kong by market cap. Aside from that, BlackRock and Morgan Stanley also own a stake of 1.92% and 1.73% in FUTU respectively:
How is Moomoo MY regulated + Safety of Funds
(1) Regulated by Securities Commission Malaysia (SC)
In terms of regulation, Moomoo MY (registered under the name Moomoo Securities Malaysia Sdn. Bhd.) is regulated by the Securities Commission Malaysia (SC), with a Capital Markets Services License to operate a legal brokerage business:
(2) Member & trading participant of Bursa Malaysia
As a trading participant of Bursa Malaysia, Moomoo MY must adhere to just & equitable principles, act with due skill, care, and diligence, and ensure the market remains orderly and fair.
In other words, moomoo MY must ensure its business activities are run as per the best practices & rules set by the authority:
(3) Moomoo MY does not have access to your funds and assets
To ensure clear transparency and avoid fraud, clientsā funds are kept separately from moomoo MYās finances through a custodian bank account.
This also ensures that if something happens to moomoo MY (eg. Bankruptcy), your funds & assets will not be affected.
(4) Your funds are protected by Capital Market Compensation Fund (CMC Fund)
As an additional layer of security, Moomoo MY clientsā fund is protected by Capital Market Compensation Fund (CMC Fund).
This allows clients to claim up to RM100,000 on eligible Malaysia securities/assets in the unlikely event that moomoo MY is unable to pay clients due to bankruptcy or fraud.
p.s. One thing to note is that just like all other brokerages in Malaysia, Moomoo MY is not covered under Perbadanan Insurans Deposit Malaysia (PIDM) which covers eligible deposits up to RM250,000 per depositor per member bank. Instead, moomoo MY's clients are covered under the Capital Market Compensation Fund as mentioned above.
How Moomoo MY is establishing a strong presence in the investing community
In this section, I'll take an aerial view and explore not just Moomoo MY, but its parent company, Futu Holdings, as a business:
Part 1: moomoo business in Malaysia
Moomoo MY is launched in Malaysia in late February 2024. At the time of this writing, it has been more than 1 year from the launch.
Moomoo MY started by offering access to the Malaysia and US stock markets, which then incrementally introduced features such as:
- Access to Malaysia, US, Singapore, Hong Kong, and China stock markets
- The first Malaysia-regulated broker to offer options trading for the US market
- Cash Plus feature, consisting of low-risk, competitive yield funds for idle cash
- Fractional share trading for US market and odd lots trading for Malaysia & Hong Kong markets
- One-stop e-IPO subscription while offering margin facility to subscribe to IPO
- And many more
For more in-depth review of moomoo MY features and pricing, check out my full review HERE.
Within 7 months of operation, moomoo MY has attracted 500,000 users, with an average of 2,300 new sign-ups daily, demonstrating strong market recognition.
Part 2: moomoo Business around the world
moomoo MY's parent company, Futu Holding (FUTU), has been established for 12 years and was listed on the NASDAQ exchange in 2019.
Besides Malaysia, FUTU has securities businesses in the US, Canada, Australia, Japan, Singapore, and Hong Kong, with over 25 million global users.
In other words, the entities of FUTU are licensed & regulated by the respective authorities of the countries they are in:
- US: Regulated by the US. Securities and Exchange Commission (SEC) and National Futures Association (NFA)
- Singapore: Regulated by the Monetary Authority of Singapore (MAS)
- Australia: Regulated by the Australian Securities and Investments Commission (ASIC)
- Canada: Regulated by the Canadian Investment Regulatory Organization (CIRO)
- Malaysia: Regulated by the Securities Commission Malaysia (SC)
Is FUTU, Moomoo MY's parent company thriving as a business?
With growing presence globally, FUTU has achieved steady growth throughout the years.
That said, how does FUTU make money?
As of the latest Financial Year (FY) 2024, FUTU's key revenue comes from Interest Income (49.06%) and Brokerage Commission (44.48%).
While it is no secret that Interest Income and Brokerage Commission are 2 important sources of income for a brokerage business, FUTU's unique expansion strategy is what makes the company shine:
As of the Financial Year (FY) 2024, FUTU has acquired more than 25 million registered users globally.
By growing their presence via competitive fees and quality products & service, it has helped accelerate FUTU's customer acquisition. With this trajectory, I am optimistic about FUTU's growth as a company.
#1 Steady Revenue & Net Income Growth:
FUTU has delivered steady growth in revenue and net income over the years.
In Financial Year (FY) 2024, FUTU achieved a USD1.75B in revenue (+36.52% growth) and USD699.56M in net income (+27.66% growth) respectively.
#2 Steady growth delivered continuous value to investors
FUTU's steady growth has been rewarding to investors in return.
For instance, FUTU's Earning-Per-Share (EPS) continued to grow with time, hitting USD5.01/share in FY 2024, a 27.79% growth over the previous year.
FUTU's Return on Equity (ROE) has also been encouraging at 20.71% in FY2024 (+9.86% growth over previous year). A positive and growing ROE indicates that FUTU is utilizing investors' capital efficiently to grow the company.
#3 A healthy margin and efficient headcount
FUTU also runs its business at a healthy margin of 39% to 40+% over the years.
A key advantage of FUTU as a digital brokerage over traditional brokerages is the company's ability to:
- Leverage on technology (eg. online account opening and customer support) and;
- Rely less on physical space, resulting in a more efficient business which translates to a more profitable business model.
Despite the company's expansion, FUTU ensures that revenue continues to grow with every hire (headcount).
No Money Lah's Verdict: Featureful & reliable trading platform for all Malaysians
So there you have it - my walkthrough on Moomoo MY's background as a brokerage and the business of its parent company (FUTU).
I hope this gives you a clearer picture of moomoo and the progress the team made over the years, as a display of their commitment to serve the global community when it comes to wealth-building and investing.
If you have any questions, feel free to leave them at the comment section!
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Moomoo Securities Malaysia Sdn. Bhd. (āMoomoo MYā). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
Moomoo Malaysia (MY) Review: Almost perfect, with some room for improvements
The highly anticipated Moomoo MY is finally launched in Malaysia in late February 2024, allowing Malaysians to trade the US and Malaysia stock market at a highly competitive fee.
Personally, Iāve been using Moomoo MY since their launch.
So, what is it like to invest through Moomoo MY? How's their pricing/fees like compared to other local brokers?
Letās find out!
Highlights of Moomoo MY
- Locally-regulated broker: Moomoo MY is regulated by the Securities Commission Malaysia (SC). This ensures that Moomoo MY's operation and business are conducted within the rules set by the authority to protect Malaysian investors.
- Access to US, Singapore, Hong Kong, China, and Malaysia stock markets + US options market: Invest in the US, Singapore, Hong Kong, China, and Malaysia stock markets + US options market within the moomoo app.
- Best fee structure for Malaysia-regulated brokers: Moomoo MY offers the most competitive fees for the US and Malaysia stock markets among Malaysia-regulated brokers, with 0 commission trading for all moomoo users for the first 180 days.
- Powerful features: Investors of all levels and experience will appreciate the useful features that will alleviate their investing experiences, such as fractional share trading, a powerful stock screener, 24/7 news, Moo community, and more.
- (NEW) Moomoo AI: Moomoo AI makes it super easy for users to gather insights on a stock or ETF - making your research process a breeze.
- Room for improvements: A rather lackluster Help section in the app, where you would not be able to find answers to many important questions.
How is Moomoo MY regulated + Safety of Funds
In terms of regulation, Moomoo MY (registered under the name Futu Malaysia Sdn. Bhd.) is regulated by the Securities Commission Malaysia (SC), with a Capital Markets Services License to operate a legal brokerage business:
This ensures Moomoo MY is operating under the best practices and guidelines set by the Malaysian authority.
In addition, clients' funds are kept separately from Moomoo MY's finances through a custodian bank account. Moomoo MY will not have access to your funds and assets, ensuring clear transparency to avoid fraud. This also ensures that if something happens to Moomoo MY (eg. Bankruptcy), your funds & assets will not be affected.
Furthermore, Moomoo MY clients' fund is protected by Capital Market Compensation Fund (CMC Fund), where clients can claim up to RM100,000 on eligible Malaysia securities/assets in the unlikely event that Moomoo MY is not able to pay clients due to bankruptcy.
Moomoo MY fees & pricing for the US, Malaysia, and Singapore stock markets
One of the reasons why Moomoo MY took the investing community by storm is its highly competitive pricing for the US, Malaysia, Singapore, Hong Kong, and China stock markets.
For pricing, Moomoo MY charges a commission and platform fee respectively. The great news is, new Moomoo MY users will enjoy 0* commission for the first 180 days:
(a) Moomoo MY pricing for Malaysia stocks, ETFs, REITs, and Warrant:
| Moomoo MY pricing for Malaysia stocks, ETFs, REITs, and Warrant | |
| Commission | RM0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
| Platform Fee | RM3/trade |
(b) Moomoo MY pricing for US stocks, ETFs, and REITs:
| Moomoo MY pricing for US stocks, ETFs, and REITs | |
| Commission | USD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
| Platform Fee | USD0.99/trade |
(c) Moomoo MY pricing for Singapore stocks, ETFs, REITs, Warrants, and DLCs:
| Moomoo MY pricing for Singapore stocks, ETFs, REITs, Warrants, and DLCs | |
| Commission | SGD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. SGD3/order) |
| Platform Fee | 0.05% x Transaction Amount, min. SGD5/order |
(d) Moomoo MY pricing for Hong Kong Stocks & ETFs
| Moomoo MY pricing for HK stocks & ETFs | |
| Commission | HKD 0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. HKD 3/order) |
| Platform Fee | HKD15/order |
(e) Moomoo MY pricing for China Stocks & ETFs
| Moomoo MY pricing for China stocks & ETFs | |
| Commission | CNH 0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. CNH 3/order) |
| Platform Fee | CNH 15/order |
(f) NEW: Moomoo MY pricing for US fractional shares:
May 2024: Fractional share trading for the US market is a newly launched feature by Moomoo MY.
It allows investors to buy and sell shares in fractional units instead of 1 whole unit. Check out the next section ('My Experience' section) as I cover more about fractional trading on Moomoo MY.
| Fractional: Trade Size <1 Share | Normal: Trade Size >= 1 Share(s) | |
| Commission | Waived | USD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
| Platform Fee | 0.99% x Transaction Amount (capped at USD 0.99/trade) | USD0.99/trade |
Moomoo MY pricing vs other locally-regulated brokers:
Check this out as I put Moomoo MY's pricing structure in comparison to the likes of Rakuten Trade and Webull Malaysia:
(i) Moomoo MY vs Webull Malaysia vs Rakuten Trade fee comparison for the Malaysia stock market (Promo: First 180 days 0 commission trades for new users):
(ii) Moomoo MY vs Webull Malaysia vs Rakuten Trade fee comparison for the Malaysia stock market (after 180 days):
Moomoo MY offers a more competitive rate from RM10,000 onwards for Malaysia stock market.
(iii) Moomoo MY vs Webull Malaysia vs Rakuten Trade fee comparison for the US stock market (Promo: First 180 days 0 commission trades for new users):
(iv) Moomoo MY vs Rakuten Trade fee comparison for the US stock market (After 180 days):
Also, take note of other non-platform trading fees that are NOT charged by Moomoo MY while you trade the stock market:
- Malaysia stock market
- US stock market:
My experience investing via Moomoo MY (Features):
The moomoo app is one of the most well-designed investing apps that I've used, which managed to combine useful features without compromising much on ease of use.
Below are some of my personal favourites while using the moomoo app to invest in stocks:
LATEST: Elevate your investing experience with Moomoo AI!
Moomoo AI makes it fast and easy to gather investing insights - be it on the overall market or a specific stock/ETF.
I like that it gives me quick insights on stocks with just a simple prompt. I can also get ideas on how to filter for stocks.
The ways to use Moomoo AI to elevate your investing experience are limitless.
#1 Real-time US and Malaysia price quotes (or price feed)
Moomoo users will be happy to learn that moomoo offers real-time level 2 US market data for FREE (where you usually have to pay on other trading platforms), as well as FREE level 1 MY market data.
What exactly is Level 2 market data?
Essentially, Level 2 market data allows you to see transaction details (ie. Buy & sell activities) across multiple price levels:
Having level 2 market data is equivalent to having an aerial view of the market. For instance, with Level 2 market data, you can detect in real-time if buyers are buying aggressively (or vice versa) and make better entry decisions.
In short, with level 2 market data, you can get a better gauge of market strength.
#2 Fractional share trading for the US market on Moomoo MY
Fractional share trading is a newly introduced feature by Moomoo MY. It allows users to invest in a fraction of a share from just $5.00 instead of buying the whole share.
Simply put, fractional share trading makes investing with a small capital much more friendly and flexible.
i. Example: Buy fractional share from just $5.00
1 unit of Apple share is worth $189.73/unit. With fractional share trading on Moomoo MY, I am able to buy 0.03 units of Apple share at $5.6919 ($189.73 x 0.03 units).
ii. Cost of Fractional Trading on Moomoo MY vs Rakuten Trade
At this point, Rakuten Trade is another locally-regulated broker that offers fractional share trading.
Let's compare which is better in terms of cost when it comes to fractional trading:
iii. Conditions for Fractional Trading on Moomoo MY
- Not all US stocks and ETFs support fractional trading. To see if a stock or ETF is eligible for fractional share trading, look for the 'Fractional Share' symbol:
- Only day orders are supported, and attached orders or short selling are not allowed
- The minimum order size for fractional trading is 0.0001 shares on Moomoo MY. For fractional trading buying, the minimum order amount is $5.00.
- Once submitted, the quantity of fractional shares orders is not allowed to be edited
- Whole share orders are not allowed to be changed to fractional shares orders
- Editing the price of a limit order for fractional shares is supported after submission and before the order is fully executed or closed.
#3 Visual information on stocks or ETFs within the app
In terms of app design, the moomoo app is also the best stock investing app I've tried so far which puts financial information into easily understandable visuals & charts.
From revenue breakdown, shareholders, dividends, and more, I can get a clear picture of a stock without having to visit other external websites:
#4 Complete trade order execution features, from basic to advanced executions
Having tried many locally-regulated brokerages, I come to appreciate the different trade order execution features that Moomoo MY is offering to users on the moomoo app.
Aside from the basic market and limit orders, I discovered various order execution features (eg. Stop order, Limit-if-Touched), which makes trade execution more versatile for investors and traders alike, regardless of style.
#5 Powerful screener & 24/7 news update
The stock screener within the moomoo app also impressed me. This screener can be super simple, or as sophisticated as you want.
From fundamental to technical filters, you can filter for stocks based on your preferred criteria:
It is also extremely convenient to get the latest financial news in the moomoo app.
Even better, the news is real-time and updated 24/7, making it easy for you to get in touch with the latest updates of the market and the companies that you are investing in.
#6 Moo community
Within the moomoo app, you'll find a vibrant Moo community, comprised of global moomoo users sharing their thoughts and insights on the market.
Not to mention various live webinars that allow you to keep up with the most happening events in the market:
#7 Earn up to 3.5%* per annum on your cash via Cash Plus (*T&C applies)
As a Moomoo MY client, you can also enjoy a low-risk, competitive return on idle cash when you sign up for moomoo's latest Cash Plus funds.
Benefits of Cash Plus:
- Daily returns: Up to 3.5%* p.a. daily returns even on weekends. (*Based on 1-year past returns on Maybank Retail Money Market-I Fund and United Money Market Fund-Class R as of May 2024).
- Low barrier of entry: Subscribe to Cash Plus from RM0.01. There is no maximum amount on how much you deposit in Cash Plus.
- Flexible: Your Cash Plus deposits can be redeemed for stock trading at any time.
- Zero Fees: All you earn is yours to keep
3 types of Cash Plus funds:
2 of the Cash Plus funds are MYR money market funds, while there is 1 USD cash fund:
This means you have the choice to earn interest/returns in either MYR or USD, neat!
Check out how to subscribe to Cash Plus below!
Explore many more exciting and useful features that moomoo has to offer!
Aside from the features that I mentioned above, there are MANY more useful gems waiting for you and me to discover on moomoo!
Some other useful features include Market Position Overview, 'Concepts', and Short Sale Analysis, which I covered in my Moomoo MY feature review.
Personally, I am always discovering new features as I explore the moomoo app, and I will update this review as I come across features that I really like!
What I wish could be improved
From my time using the moomoo app, there are a few things that I wish could be improved:
#1 Lackluster 'Help section'
As an online stock investing platform, I find the 'Help' section of moomoo's app to be lacking in important information compared to other competitors.
Simply put, I couldn't find answers to many commonly asked questions, such as:
Are there fees to corporate action, such as Dividend Reinvestment Plan (DRIP) and rights issue? What to do if I want to subscribe to corporate action?
How is Moomoo MY regulated? Who/which bank is the custodian bank that Moomoo MY has appointed to hold customers' funds?
Is Moomoo MY a nominee or direct CDS account for investing in the Malaysia stock market?
Can I apply for an IPO? If yes, how?
Can I apply to join an AGM? If yes, how?
As such, from my time using moomoo, I find myself reaching out to Moomoo MY's customer support for help - which is a mixed-bag experience on its own - more in the next point.
#2 My experience with Moomoo MY's customer support is rather hit-or-miss
Thanks to a half-baked 'Help' section, I spent a fair amount of time reaching out to Moomoo MY's 24/5 customer support for help and clarification.
Moomoo MY offers 3 channels for users to reach out for help, namely: Livechat, Phone support (03-9212 0708), and email ([email protected]).
What I appreciate about Moomoo MY customer support:
- Multiple channels to reach out for help.
- 24-hour support for live chat and phone support on working days.
- Simple questions that require standard answers are addressed quickly.
What I wish could be better with Moomoo MY customer support:
- As an existing Moomoo SG and Moomoo MY user, I am always directed to Moomoo SG chat agent before I am redirected to Moomoo MY support, where I'll need to readdress my questions. I wish Moomoo could streamline the system for both Moomoo MY and Moomoo SG users so it is easier for us to get help.
- I also faced a difficult time trying to get answers to certain questions, such as which exact custody bank/trust is Moomoo MY using to store clients' assets (eg. funds, stocks).
As a whole, as an online investing/trading platform, I wish to see more improvements in Moomoo MY's Help section and customer support, as they are the only way users can seek assistance when they need help.
Regardless, since Moomoo MY is still relatively new to the local market, I shall revisit their Help section and customer support in the coming months and see if there are any improvements.
Verdict: Moomoo MY is providing the best value for money for Malaysia investors
The launch of Moomoo MY in Malaysia has certainly disrupted the brokerage industry with its attractive pricing & fee offering, coupled with a featureful investing platform.
Now, it is even more affordable for Malaysians to get access to the US, Singapore, and Malaysia stock markets thanks to Moomoo MY.
Despite missing a few features and a slightly lackluster customer support (which I think could be improved with time), I think all these are not dealbreakers for me to recommend Malaysians to give Moomoo MY a try.
Step-by-step: How to open a Moomoo MY universal account & make your deposit
Opening a Moomoo MY universal account is one of the smoothest I've experienced among all the other investing platforms I've tried.
Step 1: Use my referral link HERE to open your Moomoo MY universal account, where you'll get to enjoy various account-opening perks.
Step 2: Fill in your personal details
Step 3: Verify your identity through your IC
Step 4: Provide your tax information, including your Tax Identification Number (TIN) (ie. LHDN number).
Alternatively, if you do not have a TIN number (eg. you are a student), you can enter your IC accordingly.
Step 5: Enter your employment details and financial information:
Step 6: You'll be required to scan your face for verification purposes.
Step 7: Read through the Customer's Declaration and proceed should there be no issue
Step 8: If the application goes smoothly, your account should be approved within 1 - 3 business days. At the same time, you'll also receive an email once your account is approved.
Step 9: Head over to 'Account' > 'More' > 'Deposit' to get instructions on how to make your deposit.
Essentially, the deposit process can be done through (i) FPX transfer (recommended, as deposit is usually done within 5 minutes) or (ii) Bank transfer.
As for deposit via (ii) Bank transfer, log in to your bank account and make the transfer to the Moomoo MY bank details as shown to you.
[Reminder] Remember to claim your account-opening perks! (Under 'Me' > 'Promotion' > Click to redeem your account opening and deposit reward)
Moomoo MY FAQ (Answers extracted directly from customer support)
Ques: Can I attend AGM for the MY and US stocks that I invest in?
Answer: AGM for US stocks: Moomoo MY does not currently support US Shareholders Meeting
AGM for MY stocks: If you want to attend the MY Shareholders Meeting, kindly drop Moomoo MY an email at least 10 business days before the Shareholders Meeting date at [email protected], the email needs to include: 1. A description of the content: Live voting or E-voting. 2. Your Name, Moomoo ID, Contact Number, and Stock code for the meeting. 3. The address of current status quo residence. (in English) Upon receiving your email, Moomoo MY will reply to you with any details.
Ques: I am an existing Moomoo SG user, can I still use my Moomoo SG universal account after opening my Moomoo MY universal account?
Answer: Moomoo MY and Moomoo SG are two different independent brokerage, will not affect each others
Ques: Any fees for corporate actions like DRIP, and rights issue?
Answer: Moomoo MY does not charge any processing fees for corporate actions of stocks (except for handling General Meeting matters). However, any third-party/exchange charges are still applicable to client.
Ques: Is Moomoo MY a nominee or direct CDS account for investing in Malaysia stocks?
Answer: Nominee CDS account
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Futu Malaysia Sdn. Bhd. ("Moomoo MY"). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
3 tools I use to handle financial emergencies in life (+Dividend Updates)
A late update, but last month (September) has been my largest dividend payout of the year so far:
- Sept 2025: RM970.15
- Sept 2024: RM814.81
- Sept 2023: RM561.38
Hopefully, by sharing my dividend progress over the years, it'll show you that building a low-maintenance dividend income from scratch is not a dream:
3 tools I use toĀ handle financial emergencies:
Liquidity, or how quickly you can access your money, is the most important factor when it comes to handling emergencies.
The first tool isn't my emergency fund. Rather...
#1 ...itĀ is myĀ credit card
Let me tell you why:
Exactly 1 year ago, my dad collapsed while he was jogging in the park.
With age, his heart became weaker, and he had to undergo a pacemaker surgery (a device to regulate heartbeat).
I remember vividly -Ā on the night before my dad's surgery, the nurse came to me and said:
"Sir, we'll require you to pay off the pacemaker device before we canĀ proceed with the surgery tomorrow."Ā
The pacemaker cost RM25,000, and it was not covered by insurance.
Meanwhile, my emergency fund was saved in low-risk money market funds, and it'd take at least 3 working days to access the money.
Guess what came to save the day?
The credit card for which I just increased my credit limit a few months ago.
UsedĀ responsibly, a credit card is a liquidity saviour.
#2 Low-Risk Money Market Funds, or Digital Banks
The next tool that I've been using is low-risk money market funds (MMF).
Generally, MMFs pay a return on par (sometimes better) to Fixed Deposits, but with the added flexibility to deposit and withdraw anytime.
My own experience with the withdrawal time of a few common MMFs:
- Versa Cash (3.49% p.a.) and Cash-i (3.27% p.a.): Same day - 2 working daysĀ
- 'Save' feature under T&G Invest (3.64% p.a.): 2 working days
- StashAway Simple (3.55% p.a.):Ā 3 - 4 working days
For instant withdrawal, I've recently transferred a portion of my emergency funds to more flexible options - but all of them come with some compromises:
- Ryt Bank Save PocketĀ (4% p.a., but only for the first RM20,000.Ā 3% p.a. thereafter)
- T&G Go+ (3% p.a.) - Max deposit limit of RM20,000.
#3 InsuranceĀ (let me explain)
Finally, for big, unexpected incidents in life, insurance is still my go-to risk-management tool.
Yes, boring - I know. But let me explain with a financial emergency in life:
How life insurance helps in the event of death:
Did you know that upon death, your assets - including cash in your bank account will be frozen?
Even if you have a will, it'll still take a few months before your loved ones get access to your assets.
Having life insurance bypasses the legal process of a will (we call it a 'probate').
In most cases, your beneficiaries will be paid swiftly, ensuring they do not face money pressure upon your passing.
Question: What are your tips to manage financial emergencies in life?Ā
I hope today's sharing is helpful!
My question to you: Are you using any other method to prepare for emergencies in life?
Feel free to share your ideas in the comment section below!
Disclaimer:
Not financial advice. Please do your own due diligence and seek professional help before making important financial decisions in life.
Stacked Confidence: How I manage uncertainties as a solo creator
A confession:
As a solo finance creator for the past 8 years, anxiety is no stranger to me due to the uncertain nature of my career.
Over time, I have become better at managing uncertainty. But this amazing IG reel from podcaster Steven Bartlett, who interviewed many successful entrepreneurs, helped me put things into perspective:
"Your relationship with uncertainty will define your entire life.
If you are the type of person that needs the answer, needs the branch that you're going to swing to, the type of person that can't jump off the tree without the branch being within reach...
You'll end up overstaying your welcome in situations that are no longer serving you."
He further adds:
"The most successful people I interviewed all seem to have in common isĀ they are able to choose uncertainty overĀ certain misery."
Isn't this powerful?Ā
Too many people (including myself) have chosen to stay in situations that make them miserable, be it:
- A toxic workplace
- An unhealthy relationship
- A dying business (more scarily, aĀ slowlyĀ dying one)
It is our nature to seek 'comfort' in a predictable life, even when it is slowly f*cking us up.
The question: How do we build up the courage to step into the unknowns?
Managing uncertainties with 'Stacked Confidence'
These days, I'm (slowly) learning to manage uncertainties through 'Stacked Confidence'.
Instead of seeking absolute certainty, I stack foundations that provide me confidence to pursue paths with uncertain outcomes:
(1) Proper Risk Management: Deal with worst-case scenarios
- 6 to 12 months of emergency fund
- Proper insurance coverageĀ
(2) Multiple sources of income
- Different streams of business income
- Low-maintenance dividend income viaĀ my Freedom Fund
(3) Continuous upskilling + getting mentors
- Pursuing my Certified Financial Planner (CFP) qualification
- Engaging different mentors, such as aĀ financial plannerĀ and a business coach.Ā
(4) The final piece of the puzzle is trusting ourselves.Ā
As my business coach always reminds me:
"You've got toĀ trustĀ that you have the ability to deal with situations when they arise."Ā
As simple as it seems, I am still internalizing this lesson to this day.Ā
Building courage with 'Stacked Confidence'
One last thing:
When we seek certainty, we hope that bad things never happen.
When we 'stack' foundations to our confidence, we are building faith that we'll have what it takes to come out of obstacles as a stronger and wiser person.
Hope this helps! :)
--
p.s. If this resonates, feel free to share your thoughts in the comment section. Iād love to hear how you are building your own 'stacked confidence' in life!
Escaping the Middle-Income Trap Isnāt (Just) About Money
What does it take to be the first in your family to escape the middle-income trap - and more importantly, never fall back into it?
I've been thinking about this lately.
On paper, Malaysiaās middle-income (M40) group earns between RM 5,250āRM 11,819 a month. But today, Iām not talking about income bands - Iām talking about a way of life.
The middle-income trap is when you earn enough to survive, but not enough to live freely.
You donāt have to worry about basic survival - but every life decision feels like a trade-off:
- Want to sendĀ your kids to 'brain development class'? That means cutting back on your annual family trip.
- Want to buy a house? Thatās 30 years chained to a job you might not even like.
- Want to join that Pilates or yoga class? Then your food budget takes the hit.
Every small upgrade in one area demands a compromise in another.
How most of us got here:
When I was born, my parents only had RM1,000 left in their bank account.
My parents worked and saved hard, ensuring that I received the best education. In my parents' generation, we've climbed from survival to stability.
However, growing up in a middle-income environment, I was exposed to the way of thinking that a lot of us would be familiar with:
- "Investing is risky"Ā (so don't do it).
- "Study hard and get a stable job"Ā (the only way to get money is by exchanging your time).
- "Insurance is a scam"Ā (so don't EVEN talk about it)
- "Having debt is bad"Ā (no one taught me about 'good' debt and 'bad' debt)
- And the things that aren't spoken out loud, butĀ doneĀ subconsciouslyĀ - theseĀ are the most difficult mindset to reverse down the road: To prove that you've 'made it' in life, you need to have big cars and houses.
When I started my content creation career in the personal finance field, I noticed something:
The truly wealthy people think about money and wealth VERY DIFFERENTLY.
Heck, even their kids are brought up (thinking) differently.
While the mindset that I was taught growing up ensures survival, the limiting beliefs are also the ones locking many people in the middle-income trap.
In other words, the next leap requires a complete mindset revamp.
Escaping the Middle-Income Trap (MIT) -Ā forever
I learned that to move beyond MIT, I needed to unlearn what once kept me safe.
More importantly, I have to adopt a different way of thinking about money and wealth:
- Money isnāt evil ā itās a tool for optionality.
- Growing income-producing assetsĀ while I sleep through investingĀ (taking calculated risk).
- Stacking leveragesĀ to grow my incomeĀ (small targeted effort, big outcome)
- Insurance isnāt a scam - itāsĀ risk management
Also:
You do not need fancy cars or houses to show people that you've 'made it' in life.
Rewriting the Family Playbook
It took me years to rewire my own beliefs about money and wealth.
Even now, I still catch myself falling back into old, self-limiting beliefs at times.
But Iāve decided: Iāll be the first in my family to build the foundation for wealth that lasts.
If Iām lucky enough to raise the next generation, I want my kids to grow up with a different mindset:
- FreedomĀ over materialism
- Leverage time and capital, not just effort
- Understand risk and reward, not fear it
- Seek optionality, not just stability
The Real Goal
Wealth building isnāt about flexing with race cars or designer goods.
Itās about optionality. It's the freedom of choice to:
- Eat healthy and train without worrying about cost.
- Give your parents the care they deserve.
- PursueĀ projects because theyāre meaningful, not because youāre desperate.
One final thought:
The middle-income trap isnāt just about income.
Rather, itās a mindset range.
The real way out?
Think bigger than survival.
--
p.s. If this resonates, hit reply and share your thoughts. Iād love to hear how youāre breaking out of your own version of the middle-income trap.
Guide: How to choose & buy your PRS fund?
What is PRS, and how can I find and buy the best PRS fund?
Private Retirement Scheme (PRS) is an initiative that the Malaysian government introduced to encourage Malaysians to invest for their retirement.
In return, Malaysians can enjoy personal tax relief of up to RM3,000 whenever they enroll or top up their PRS account. As of Budget 2025, this relief has been extended until 2030.
However, how can one know which PRS fund to invest in?
In this guide, I'll cover a simple guide on how to research and invest in PRS fund for yourself!
Step-by-step: Screen for PRS funds using the FSMOne Fund Selector Tool
For unit trusts and funds, I usually refer to FSMOne's Fund Selector Tool as it has one of the most comprehensive fund coverage in Malaysia.
Even better, it is free to use!
Step 1: Head on to FSMOne Fund Selector Tool, and filter for PRS funds
Click the below button to access FSMOne Fund Selector Tool. I've customized the button to go directly to PRS funds:
On the site, you'll notice that the funds have been filtered specifically for PRS funds:
Step 2: Sort your PRS funds by various criteria
One thing I appreciate about the FSMOne Fund Selector Tool is the ability to sort the funds according to different criteria:
(a) Sort by Year-To-Date (YTD) and Annualized Performance
To find out the top-performing PRS funds in the past, you can sort the funds according to their performance at different timeframes.
Example:
- If I'd like to sort for the top-performing PRS funds this year, I'll sort by 'YTD'.
- If I'd like to sort for the PRS funds with the highest average return in the past 3 years, I'll sort by '3y'.
(b) Sort by Calendar Year Performance
You can also compare the funds' performance according to a specific year in the past:
(c) Sort by 3Y Sharpe Ratio
Sharpe Ratio is one of the most useful metrics when researching a fund's performance.
Essentially, Sharpe Ratio helps us compare the risk-adjusted performance between funds. Simply put, we can use Sharpe Ratio to decide if a fund's risk is worth the return.
How to use Sharpe Ratio:
- Sharpe Ratio is best used to compare funds with similar asset classes and geographical exposure.
- Generally, a fund with Sharpe Ratio >1.0 is considered good as it shows that the fund provided excess returns relative to the risk it experienced.
- Meanwhile, a Sharpe Ratio <1.0 is less ideal as it (generally) indicates that the return was not enough to compensate for the risk.
Example:
Principal Islamic PRS Plus Equity - Class C and Kenanga OnePRS Growth Fund are both funds with exposure to Malaysian equities.
Given their similarity, one can use Sharpe ratio to compare their risk-adjusted performance:
(d) Sort by 3Y Volatility
Funds can also be sorted by volatility.
Essentially, funds with lower 3Y volatility have a track record of providing more consistent returns over time rather than chasing short-term performance.
(e) Sort by Asset Class and Geographic Sector
Aside from performances, it is also useful to know the underlying asset class and where the funds are geographically invested in.
(i) Under Asset Class, you'll know WHAT a fund is investing in:
- Equity: Mainly stocks. Generally higher potential return but is more volatile and risky.
- Fixed Income: Exposure to debt instruments like bonds, Fixed Deposits, and money market funds. Generally lower potential return but is less volatile and risky.
- Multi-Asset/Balanced: A mixed exposure of asset classes such as equity and fixed income. These funds generally strike a balance between returns and volatility/risk.
(ii) Under Geographic Sector, you'll know WHERE a fund is investing in:
- Malaysia/Malaysia-focused: Mainly exposure to assets in Malaysia
- Asia: Mainly exposure to assets in Asian countries.
- Asia ex-Japan: Mainly exposure to assets in Asian countries, excluding Japan.
- Global: Gain exposure to global assets.
Step 3: Click on a specific PRS fund to learn more details
Example of information that I'd like to know about a fund:
#1 Holdings: What does the fund invest in?
#2 What are the fees involved when I invest in this fund?
To note:
- All PRS funds under FSMOne have 0% sales charges.
- Fund manager fees include annual management fees, trustee fees, and expense ratios. These fees are deducted directly from the fund's Net Asset Value (NAV) and no additional payment is required.
- PPA fee charged by Private Pension Administrator (PPA) Malaysia
6 Tips to find the best PRS Funds
Here are my 5 general principles for finding the ideal PRS fund:
- #1 Positive past 3y, 5y, or 10y performance.
- #2 Funds that are diversified across different geographical regions or sectors (eg. Global). In other words, I prefer funds that are not dependent or focused on just a single country/region (eg. Malaysia or Asia focused) or sector
- #3 Funds with lower 3Y volatility - which indicate that returns are generated consistently over time.
- #4 Sharpe Ratio higher than 1.0 (if not, as close to 1.0 as possible) while comparing funds with similar geographical traits or asset exposure.
- #5 Relatively low fees/charges
The goal is to strike a balance among the 5 variables above while researching for your ideal PRS fund.
Tips #6: Check out Target Date Funds (TDF)
Target Date Funds (TDF) are unique funds that will, over time, adjust & optimize the assets according to their risk nature.
All you have to do is to decide your optimum retirement timeframe.
As you approach retirement, TDF fund managers will adjust the fund holdings and invest in more stable and less volatile assets.
The Principal RetireEasy and Principal Islamic RetireEasy series are Target Date Funds with different retirement timeframes. As of time of writing, the respective timeframes are 2030, 2040, 2050, and 2060:
Fund comparison feature in FSMOne Fund Selector Tool
What if you have multiple PRS funds that you'd like to compare side by side?
The fund comparison feature in FSMOne is designed just for this:
Step 1: Select the funds that you'd like to compare, then click 'Compare Now'
Step 2: Compare important information for selected PRS funds
Important info such as past performance, asset class & geographical exposure, and Sharpe Ratio I(and more!) can be compared:
How to invest in PRS funds (+š Promo)
One of the best ways to invest in PRS funds is through FSMOne, as you get access to a vast selection of PRS funds from 7 PRS providers (AIA, AmInvest, AHAM Asset Management Berhad, Manulife, Principal, Kenanga, RHB).
š FSMOne PRS Campaign 2025: Enjoy RM40 FSMOne Cash Account! (ending 15/12/2025)
From 6 October 2025 to 15 December 2025, enjoy RM40 FSMOne Cash Account Credits when you invest in PRS Funds via FSMOne!
- š Reward #1: Receive RM40 worth of FSMOne MYR Cash Account credits when you invest a minimum gross investment amount of RM3,000 in one PRS Fund in a single transaction via FSMOne from 6 October to 15 December 2025.
- Participating PRS Providers for this campaign include:
- AHAM Asset Management Berhad
- Kenanga Investors Berhad
- Manulife Investment Management (M) Berhad
- Principal Asset Management Berhad
- RHB Asset Management Sdn Bhd
- All cash payments and completed forms must reach FSMOne by 11am, 15 December 2025.
- š Reward #2: In addition, enjoy RM25 MYR Cash Account credits ā For new FSMOne users who open an FSMOne account and make their first top up/investment (including PRS) [Campaign: 8/10 - 31/12/2025]
Check out the section below for a step-by-step guide on how to buy your PRS fund from FSMOne.
Step-by-step guide to buy your PRS fund from FSMOne
Prerequisite: Firstly, start by opening your FSMOne account HERE. Skip to Step 2 if you already have a FSMOne account.
- Select 'Personal Account'
- Key in your personal details and create your FSMOne account username & password.
- Key in your tax information
- Verify your identity by taking a photo of your IC
- Enter your address and upload a supporting document (eg. utility bill, bank statement) as proof of your address:
- Enter your employment details. You will also be given an option to open a CDS account with FSMOne, which allows you to trade stocks. There will be a fee of RM10 to open a CDS account, which will be refunded upon successful account activation:
Step 1: Log in to your FSMOne account and click on "Trade"
Step 2: Look for Unit Trust and click "Buy"
Step 3-4: Under 'View By', select Private Retirement Funds and choose Private Retirement Funds
Note: This step only appears during the initial subscription process.
Step 5: Fill in the investment amount and payment method (FPX/Cash management fund/Cash account)
Step 6: Fill in the information and Sign
Note: This step only appears during the initial subscription process.
Step 7-8: Click View Cart and proceed to Check out
(you may add more Funds or proceed to view the Cart, check the details and proceed to check out)
Step 9-10: Agree on Terms and Proceed to make payment
You may click the links to the terms and conditions and check out to proceed to make payment from your personal bank account as we do not accept third-party payments or cash deposits
Step 11: Order completed and click Pay now
Only for PRS Funds from Manulife, AIA, AmInvest, click download PRS Form to complete your transaction.
Step 12: Select your preferred bank and complete the payment
You may select your preferred bank account to proceed to make FPX payment
PRS Frequently Asked Questions (FAQs)
Ques: What is my tax incentive for investing in PRS?
Ans: You get to enjoy personal tax relief up to RM3,000
Ques: Who can invest in PRS?
Ans: PRS is open to individuals aged 18 and above, including both Malaysians and foreigners.
Ques: Can I withdraw/sell my PRS funds?
Ans: Your PRS contributions are allocated to sub-accounts A and B, with different withdrawal conditions:
- Sub-account A (70%): Can be withdrawn upon reaching retirement age of 55.
- Sub-account B (30%): Can be withdrawn once a year (1 year after your subscription), subject to a 8% tax penalty.
Ques: Can I transfer my existing PRS fund to another PRS provider?
Ans: Yes, transfer to other PRS provider is allowed after 1 year from the first subscription date. A RM25 PPA transfer fee per request and other related transfer fees (if applicable) will be incurred.
Ques: Can I switch my PRS fund?
Ans: Yes, with FSMOne, you can: Adjust your portfolio based on market conditions or your goals and switch across 60+ PRS funds from 7 providers.
Disclaimers
All materials and contents herein shall not be construed as an offer or solicitation for the subscription, purchase or sale of any fund, product or services. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons.
Investors are advised to read and understand the contents of the prospectus, product highlight sheet (PHS) and relevant disclosure documents before investing. The prospectuses, PHS and relevant disclosure documents can be obtained from FSMOne Malaysia website. Investors should compare and consider the fees, charges and costs involved before investing. Investors are advised to understand the risks involved in relation to the products or services and further conduct his/ her own risk assessment and seek professional advice, where necessary. The unit trust fundās prospectuses have been registered and lodged with the Securities Commission (SC), however this does not amount to nor indicate that SC has recommended or endorsed the product. Past performance is not indicative of future performance. Opinions expressed herein are subject to change without notice. Some funds, products or services may not be suitable or available to all investors, and are only made available to Sophisticated Investors (as defined in Capital Market and Services Act). The contents herein have not been reviewed by SC. Please read our full disclaimer in the website.
I'll not retire purely off dividends - here's why (and a better way to retire)
Like most dividend enthusiasts, Iāve always dreamt of living purely off my dividends when I retire one day.
However, as I studied the topic of retirement further, Iāve decided not to pursue this path.
In this weekās newsletter, let me show you why, and the better alternatives that Iāll be using:
#1 The problem of retiring purely off dividends
Being able to live off dividends is attractive to many. This is because retirees are not required to sell their investments to fund their expenses - which can be difficult without proper rules in place.
But thereās a problem: To do this, you will need a huge capital.
Let me show you what I mean:
Scenario:
At 30, Adamās yearly expenses is $24,000 ($2,000/m), and he expects his expenses to stay the same upon retirement, after adjusting for inflation. He plans to retire after 60, and expects to live until 90.
Letās assume in the long run, inflation is 3%. And letās also assume that heāll receive a return of 6% (in the form of dividend yield) on his retirement fund upon retirement.
How much retirement does Adam need by the time he retires?
Hereās how to determine the retirement fund Adam will need:
Step 1: Find out how much his yearly expenses are when he retires ($60,001.93):
- Using this Future Value calculator, key in the following:
- N = 31 (Adam has 31 years before he retires: 60-30+1)
- PV = $24,000 (Adamās expenses at present day)
- Interest Rate = 3% (inflation)
- PMT = $0
- PMT made at the āBeginningā of each period
- Next, click āCalculateā, and weāll find that $24,000 worth of yearly expenses today will be equivalent to $58,254.30 when Adam retires after 60.
Step 2: Find out the total retirement fund required by Adam by the time he retires.
- To do so, we will first need to adjust the rate of return of Adamās retirement fund (6%) by the inflation rate (3%). This ensures that our calculation takes into account of the effect of rising prices over time.
Adjusted return by inflation
= [(1+Return)Ć·(1+Inflation)]-1
= [(1+0.06)Ć·(1+0.03)]-1
= 0.0291 (2.91%)
- Next, divide āFuture Valueā from Step 1 ($60,001.93) by the adjusted return:
$60,001.93Ć·0.0291 = $2,061,922
- Finally, add Adam's first year's expenses to his total retirement fund ($60,001.93). This is to cover his Year 1 expenses when he retires before he receives the dividends from his retirement fund:
$2,061,922 + $60,001.93 = $2,121,923.93
In other words, if Adam would like to maintain his current lifestyle purely with dividends when he retires, he will need to accumulate $2,121,923.93 by the time he starts his retirement at 61 years old.
By purely living off dividends, Adam would be left with $5,156,620 at the end of age 90:
The downside of retiring off dividends:
- A relatively large amount of capital is required, compared to the methods that I'll be showing in the next section
- Does not take into account of a difficult market where dividend cuts are possible.
- Retirement capital saved isn't fully used to enjoy life after retirement.
#2 The rule of 25
On the other hand, the Rule of 25 is a rule of thumb that suggests you need to save 25x your expected annual expenses to retire.
This rule is a practical application of the 4% withdrawal rule, implying that if you save 25x your annual expenses, you can withdraw 4% of your savings each year to cover those expenses, without depleting your retirement fund.
In my opinion, while not perfect, the rule of 25 is decent to estimate how much you need to retire.
Scenario:
Jane is 30 this year and her expenses at present day is $24,000 per year ($2,000/month). She foresees her expenses to remain the same after she retires in 30 years, after 3% inflation. As her retirement fund, Jane is building a dividend portfolio that will pay her an average of 6% dividend per year.
Using the rule of 25, how much does she need in her retirement fund when she retires?
Hereās how to determine the retirement fund Jane will need:
Step 1: Find out how much his yearly expenses are when she retires ($60,001.93):
- Using this Future Value calculator, key in the following:
- N = 31 (Jane has 31 years before she retires)
- PV = $24,000 (Janeās expenses at present day)
- Interest Rate = 3% (inflation)
- PMT = $0
- PMT made at the āBeginningā of each period
- Next, click āCalculateā, and weāll find that $24,000 worth of yearly expenses today will be equivalent to $60,001.93 when Jane retires after 60.
Step 2: Multiply yearly expenses upon retirement by 25
$60,001.93 x 25 = $1,500,048
$1,500,048 is how much Jane would need to fund a 30-year retirement without depleting her capital, assuming a 4% annual withdrawal rate from her retirement fund.
This is significantly lower than the amount required to live off dividends ($2,061,922).
[Tips] To see the yearly withdrawal under the Rule of 25, use the calculator below:
Calculator: https://www.fourpercentrule.com/
Calculator Setting:
- Current age: 60, Retirement age: 60
- Current Assets: $1,500,048
- Retirement years: 30
- Leave all options under āAddā section unticked
- Put 0 for all selections under āContributionā section
- Inflation: 3%
- Pre-retirement return 0%, Post-retirement return 6%
- Fixed % return: 0%
- % in equity: 100%. % in fixed income: 0%.
- Retirement spending: Using 4% rule
Result:
- Based on Janeās retirement plan, she can afford to retire after age 60, withdraw 4% from her retirement fund every year (adjusted for inflation), and still have a remaining balance of $1.7 million at age 90.
Downsides of the Rule of 25:
- Assumes a Stable Portfolio: The rule assumes your portfolio will consistently generate enough returns to meet your withdrawals, which isn't guaranteed.
Is there a way to adapt a retirement strategy to the ever-changing market conditions?
#3 Bucket Method
Personally, I am more inclined to use the Bucket Method for my retirement days. This is a more flexible way of adapting to fluctuating market conditions.
The Bucket Method is a simple adaptation of the Rule of 25. The good thing? It is adapted dynamically to market returns. Let me show you how it works:
Scenario:
Nick is 30 this year and his expenses for his basic needs at present day is $24,000 per year ($2,000/month). When he retires in 30 years, he expects the expenses for his basic needs to stay the same. However, he also wishes to go on occasional traveling to enjoy his retirement life.
Nick has a dividend portfolio that pays an average of 6% in dividend yield annually. But this may fluctuate depending on market conditions.
Using the rule of 25, how much does he need in his retirement fund when he retires? Assume a long-term inflation rate of 3%.
Hereās how to determine the retirement fund Nick will need:
Step 1: Find out how much his yearly expenses are when he retires ($60,001.93):
- Using this Future Value calculator, key in the following:
- N = 31 (Nick has 31 years before she retires)
- PV = $24,000 (Nick's expenses at present day)
- Interest Rate = 3% (inflation)
- PMT = $0
- PMT made at the āBeginningā of each period
- Next, click āCalculateā, and weāll find that $24,000 worth of yearly expenses today will be equivalent to $60,001.93 when Nick retires after 60.
Step 2: Multiply yearly expenses upon retirement by 25Ā (Rule of 25)
$60,001.93 x 25 = $1,500,048
Step 3: On top of that, save up 2 years' worth of expenses in cash to cater for market fluctuations
$60,001.93 x 2 = $120,003.86
Choices to save in Fixed Deposit (FD) or low-risk money market funds. Key consideration is to have easy access to funds, no lock-in period, and no penalty for withdrawal.
Total Retirement Fund Required: $1,500,048 (Step 2) + $120,003.86 (Step 3) = $1,620,051.86
Example of Bucket Method under different market conditions:
There are 2 buckets to Nick's retirement fund:
- Bucket 1: 2 years' worth of expenses in cash: $120,003.86
- Bucket 2: Invested Retirement fund: $1,500,048
Here is how the Bucket Method would work under different market conditions (Normal Year, Good Year, Bad Year):
Key principles for Bucket Method:
- In a normal year, reinvest all the surplus back to portfolio. Stick to the standard 4% withdrawal rule.
- In a good year where you have an outsized surplus (eg. 3% surplus instead of 2% from the example above), you are free to spend the extra surplus (1%) on enjoyment.
- In a bad year, use Cash Bucket to cover the shortfall in dividend income. Then, use future surplus during a good year to replenish Cash Bucket. The rule of thumb is to always replenish Cash Bucket back to 2 years' worth of expenses.
Downsides of the Bucket Method:
- More hands-on effort is required to manage retirement fund.
Verdict: No perfect style - choose what fits for you
I hope this guide has been helpful!
At the end of the day, choose what style that fits best to your life circumstances!
If you have any questions, feel free to leave them at the comment section below!
Disclaimer:
Not financial advice. Please do your own due diligence and seek professional help before making important financial decisions in life.