How to invest in unit trusts using the HSBC EZInvest app in Malaysia

[This is a sponsored article with HSBC Malaysia.]

As someone entering their 30s with limited investment experience, it is both relieving and alarming to learn that I am not alone. It turns out that about 43% of local millennials haven’t tried investing at all and have no intention of doing so.

Taking a closer look at the financial habits of millennials, another recent report found that 40% of millennials are also spending beyond their means. This means that a large number of young workers do not save or invest.

The ongoing pandemic is probably their very first economic crisis where they manage their own finances. It’s not all bad news though, experts believe the Movement Control Order (MCO) is a good time to practice for young people to think about and adjust their spending and lifestyle.

Investing can be a good starting point to potentially grow your wealth. But that said, there is risks incurred in investments, so be sure to do your own research and do your due diligence before making any financial decisions.

One investment option available to Malaysians are Unit Trusts.

What exactly are mutual funds?

Unit Trusts (UTs) act like normal investments, where we exchange funds for assets. However, there are a few key things to note about how UT works.

When you first invest in UT, your money is pooled with other investors. The money is then managed by a financial professional who will invest the money pooled to achieve the pre-agreed investment objective and approach.

Example scenario: Alan wants to invest RM 1,000 in UT. He talks to a financial professional and they set a goal on how much profit Alan wants to make. Alan wants to come out with a profit of RM300. The investment amount of RM 1,000 is then forwarded to the finance professional.

The finance professional also manages other investors like Alan. With a combined pool of money from different investors, they can invest more in different assets.

A year later, the market favored Alan’s investments and hit his profit target. He then decides to sell the investment. Of course, other factors such as market volatility, risks and management fees are still in play even in UT. And according to UT, some could pay annual dividends.

Since the funds are managed by a financial professional, unitholders (investors) have limited control over the assets in which they invest. In terms of profits, the unitholders might also get less profit as they have to pay management fees to the finance professional.

From a benefit perspective, unit owners will have a long list of portfolios, as the financial professional will often diversify into different assets, following the age-old saying of “don’t put all your eggs in one basket”.

Dip your toes in UT investing

HSBC’s investment platform on HSBC Malaysia Mobile Banking app, EZInvest, is now available in Malaysia to give users convenient access to UT investing.

Compared to conventional investing in UT where you have to speak to a financial professional, EZInvest offers you the possibility to invest in UT through a secure platform directly on your mobile phone. To get started, you will need an HSBC Unit Trust investment account or an HSBC Amanah Unit Trust investment account.

With EZInvest you can start investing from 500 RM.

Besides the low entry point, HSBC allows investors to access different assets ranging from local, Asian and global markets. HSBC EZInvest is designed to be easy to use. Here are the steps to access its services:

1. Open the HSBC Malaysia Mobile Banking app (download the app from Apple App Store or Google Play Store) and sign in using biometrics or your account details.

2. Tap EZInvest, which can be found under the “Products and Services” tab.

The welcome screen for new investors, EZInvest, can be found under Products and Services / Image Credit: HSBC

3. If you are a first-time investor, a welcome screen will appear, showing the features of UT. If you have invested through the app, you can press “My holdings” to view all of your current assets, their market value and the potential gain or loss of the asset. If you want to buy more, you can also do that in this section.

An example of what you will see if you have investments under HSBC EZInvest, can be found under “My holdings” / Image credit: HSBC

4. To start investing, tap “What can I invest” and you will be taken to a page where you can see all of the details of a fund you can invest in. It will show you detailed information about the fund’s price, performance, allocation, fees and charges. If you want to invest in this specific fund, click on “Invest now”.

Full details of what you will invest in, as well as the performance graph and the risk level of the product / Image Credit: HSBC

5. Fill in the necessary details when prompted, verify the transaction details and you’re done. If you wish, you can save the details of the transaction by clicking on the share button.

The screen where you double-check the details as well as the fees before confirming the investment / Image Credit: HSBC

With EZInvest, you won’t need to talk to finance professionals or others to make an investment since you can buy, sell and manage your investment through the platform. And you will have access to your UT wallets under HSBC and HSBC Amanah.

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It should be noted that making a profit from an investment is not a sure thing. So be sure to study the investment you are investing in to see if it is right for your lifestyle, spending habits, and financial goals. Investments are usually tied to long-term profits, so it makes sense to start as early as possible.

  • For more information on HSBC EZInvest, click on here.
  • Read our previous HSBC articles here.

Use of EZInvest (app) is governed by the HSBC Bank Terms and Conditions for Online and Mobile Banking Services, End User License Agreement and Important Notes available in the HSBC Malaysia Mobile Banking App. In order to carry out a transaction in this app, only one Unit Trust investment account must first be opened. Please visit HSBC Bank or HSBC Amanah branch or contact us by phone to open a Unit Trust investment account to transact on this app. The services provided through this application do not imply any recommendation or advice from us. All transactions you make through this app are done on an execution only basis and based on your own judgment. The value of investments, unit prices, income distribution and the impact of exchange rate fluctuations may go down or up, and the investor may not get back the amount originally invested. The past performance of a mutual fund should not be taken as indicative of its future performance. Investors are urged to carefully read and understand the contents of the prospectus and to take into account the general risk factors associated with investing in mutual funds in addition to other specific risks associated only with mutual funds. All relevant risk factors are described in the relevant prospectus for mutual funds. The list of trust funds provided through this app does not reflect the full list of funds offered by HSBC Bank and HSBC Amanah through the branch channel. If you are looking for the full list of mutual funds, you can visit our HSBC website or our branch for more information. The scope of transactions available is lump sum investment, monthly investment plan (MIP) and redemption. To convert, transfer or exercise the right of withdrawal for mutual funds, please visit the nearest HSBC Bank or HSBC Amanah branch. If you would like to inquire about such a procedure, please contact HSBC Bank Malaysia through the channels specified in Mutual funds and units of such funds are not protected by Perbadanan Insurans Deposit Malaysia (“PIDM”); and any money withdrawn from an insured deposit for the purpose of purchasing units in an investment fund is no longer protected by PIDM. This document has not been reviewed by the Securities Commission Malaysia (SC).

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Featured Image Credit: HSBC

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