3 min read I Date: 13 April 2022
( In partnership with imoney )
The world of investing has altered considerably as a result of technological advancements. With global markets available to anybody with an internet connection, it has never been easier or more affordable to start investing. Financial institutions today view digital advancements as requirements that should be made available to everyone. Today, financial information is at the fingertips of retail investors like you and me, and you no longer need a large sum of money to start investing anymore. In fact, you don’t even need to leave your house or take out cash to pay over the counter to start investing. All you have to do is get online and start surfing.
How the internet has changed investing
Freedom of information is the biggest change to how investing is done in the digital world. Company information and stock performance can be pulled up at a moment’s notice. The millions of transactions that take place each day can be observed from a single dashboard. In addition to this, automated investment platforms have made investing and day trading easily accessible to everyone. Regardless of income level or experience with financial markets, everyone can enter the world of investment.
This has led to a big increase in retail investors (the term for individual, non-professional investors) participating in the market. According to The Edge Markets, the participation rate of retail investors in our local stock market rose to 32.4% in 2021, up from 20.8% in 2019. However, not everyone can directly benefit from these kinds of advancements in digital technology. While stock market information is now readily available, the sheer volume of daily trades makes it difficult for the regular individual to keep track of what is going on. For instance, the turnover volume for Bursa Malaysia in December 2021 was over 65 million shares. That’s over two million shares changing hands every day! While the internet has opened doors for new investors, some of its most important advancements are not for mass market consumption; rather, they are designed to help financial advisors better serve their clients.
Digital investing with Principal Asset Management
The good news is that you don’t have to personally shift through the mountain of information every day to keep track of what’s going on. Principal Asset Management is on hand to do the hard work for you with Principal Direct Access (PDA), a one-stop distributor portal that helps their consultants better manage clients and their investments. Here’s how you can benefit from using PDA:
Getting new investors set up with a Principal fund is now as easy as tapping a few buttons. However, the real advancements come from being able to quickly sift through fund information in order to find an investment profile that best suits the clients. PDA provides a convenient dashboard for consultants to view potential fund performance and adjust investment parameters to get a visual representation of potential returns over time (with an extra comparison against the benchmark).
Supporting the onboarding of new accounts is the option to provide digital documentation. In the age of electronic records, there is less reason to have to fill out physical forms. Smartphones with cameras enable relevant paperwork to be scanned and uploaded to servers in a matter of seconds. Clients don’t need to meet their consultants in person in order to submit paperwork or relevant documents. It’s not only practical, but it also helps preserve the social distancing in the current situation due to the pandemic.
New digital payment options
Traditionally, adding funds to a unit trust investment can only be done through a bank transfer. However, today’s digital investment platforms allow retail investors to top up their accounts through their phones. This feature is also available on the PDA platform. Once onboarded with Principal, you can easily invest funds through your virtual investment accounts with the help of a consultant. These transactions will all be logged for future reference for both you and your consultant. This helps the consultant provide better support for their clients.
Experience it for yourself
Curious about what Principal Direct Access can do for you? Principal Asset Management offers over 70-unit trust funds to help investors diversify their portfolios according to their personal risk tolerances and preferences. Using PDA, Principal’s consultants can help investors to:
- Easily onboard the platform as an existing or new investor
- Choose between a single or joint account holding
- Help create new cash account for EPF investments
- Perform top-up, switching or redemption for their funds
- Set up and manage a Regular Savings Plan (RSP) for their active funds
What to do next?
Build your retirement savings by investing online with Principal. Manage all your portfolio on-the-go, anytime, anywhere.
If you’re new to investing, or looking for a financial consultant, we have you covered. We offer a wide range of investment solutions to help you meet your financial goals. Our team of financial experts will help you define and plan your investments to achieve your dreams. Get advice on how much time to set aside for each of your goals, and where to start working towards them.
You are advised to read and understand the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) before Investing. Among others, you should consider the fees and charges involved. The registration of the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) with the Securities Commission Malaysia (SC) does not amount to nor indicate that the SC recommends or endorses the funds. A copy of the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) may be obtained at our offices, distributors or our website at www.principal.com.my. The issuance of any units to which the relevant Prospectus, Information Memorandum and/or Disclosure Document relates will only be made on receipt of an application referred to in and accompanying a copy of the relevant Prospectus, Information Memorandum and/or Disclosure Document. Please be advised that investment in the relevant unit trust funds, wholesale funds and/ or private retirement scheme carry risk. An outline of the various risks involved are described in the relevant Prospectus, Information Memorandum and/or Disclosure Document. As an investor you should make your own risk assessment and seek professional advice, where necessary. Securities Commission Malaysia does not review advertisements produced by Principal.