Human Intervention: A Double-Edged Sword in Portfolio Management
Until the day technology has matured enough that A.I. develops an independent creative impulse, we still need human input for vocations related to creativity and imagination. However, the same cannot be said for portfolio management where emotions often result in undesirable outcomes especially during turbulent trading times. In fact, according to SPIVA U.S. Scorecard (Mid-Year 2021), on average, some 60% of human-managed U.S. Equity Funds (across all indexes) missed their benchmarks in absolute returns over a 12-month period through June 2021 – you might stand a better chance flipping a coin!
Snapshot of percentage of U.S. Equity Funds Underperforming their benchmarks using human-managed fund management
(Source: SPIVA U.S. Scorecard, Mid-Year 2021)
By replacing humans with A.I. at nearly every stage of the investment process, KDI is able to bring affordable global investing opportunities to more Malaysians, balancing prudent risk management with access to both local and global equities.
Liberating the Traditional Investment Fee Structure
KDI Invest is designed to bring global investment to everyone with a promise of the lowest management fees in town. As a matter of fact, investors are able to enjoy as low as zero fees with no hidden charges.
Compared to the typical unit trust with 3% to 5% upfront fees and annual management fees ranging from 1.5% to 2.5%, investors can enjoy zero fees for investments below RM3,000 with KDI Invest. Beyond RM3,000, KDI Invest charges the lowest management fees in town at 0.3%-0.7%, capped at RM6,000. There are no hidden fees or upfront charges with KDI Invest. While the fee difference might look relatively small, it can actually have a major impact on investment value over time, particularly with traditional upfront sales charges eating into your investment value from day one.
KDI Invest – A Localized Robo-Advisor That Understands You
Tapping on the wealth of investing experience and cultural knowledge from the largest independent investment bank in Malaysia, KDI also incorporates your personal preferences into its system.
KDI’s risk questionnaires and profiling take into account the investor’s demographics such as each individual’s age, investment goal, and investment duration to assess each individual’s risk appetite. From this information, KDI proposes several diversified portfolios that align with 5 uniquely tailored risk profiles. The A.I. then monitors the global market conditions and rebalances your portfolios automatically, giving you peace of mind that your portfolio is being taken care of around the clock.
KDI Invest: Something for Everybody
If you are in the market for an easy access, cost-effective investment vehicle with minimal entry requirements from as low as RM250, register with us now to start investing in KDI Invest with no fees for portfolios up to RM3,000.