KUALA LUMPUR (June 19): Rakuten Trade Sdn Bhd has launched its new service Raku-Invest, a platform designed to simplify and regularise investing.

In a statement on Wednesday, Rakuten Trade chief executive officer Kazumasa Mise said Raku-Invest is about enabling and democratising access to the US equity markets.

“With the US stock market capitalisation representing about 40% of the total global stock market capitalisation, it’s a significant and potentially lucrative market for investors. However, the barriers to entry for Malaysians can be challenging.

“Raku-Invest is a localised version drawing from the success of 'Tsumitate Investing' offered by Rakuten Securities, Inc (RSec) in Japan.

“It has performed incredibly well in Japan appealing to young, beginner investors and we hope it will do the same in Malaysia,” said Mise.

Mise explained that Tsumitate investing, originating from Japan, involves regularly investing small amounts of money over time instead of a lump sum.

He said it is a strategy that aims to reduce the impact of market volatility on investments. Investors can initiate automated recurring trades for US shares, American Depositary Receipts (ADRs), and exchange-traded funds (ETFs) from RM100.

It will automatically continue to trade at pre-selected scheduled periods — either weekly or monthly — without human intervention.

For example, investors can schedule their Raku-Invest purchase of Advance Micro Devices (AMD) shares monthly, starting on Wednesday with an initial investment of RM100.

Mise said Raku-Invest is a revolutionary way for Malaysians to approach investing that will be particularly beneficial for first-time traders entering the US markets.

He said it supports a dollar cost averaging investment strategy, promoting the concept of “accumulated investing” for novice investors.

“It removes emotions and instead promotes disciplined investing by committing to a regular trading schedule.

“This focus on long-term goals, despite market fluctuations, helps to mitigate the impact of market volatility and reduces the risk of investing a large sum of money at an inopportune time,” said Mise.