Personal Finance Term
Robo-Advisor
An automated investment platform that builds and rebalances a diversified portfolio on your behalf using algorithms, typically at much lower fees than traditional fund managers.
In Malaysia, SC-licensed robo-advisors include StashAway, Wahed Invest (Shariah-compliant), and a few others. Minimum investments typically start at RM100. Annual fees range from 0.2%–0.8%, far below the 1.5%–2% of most actively managed unit trusts.
Robo-advisors are best suited for long-term, passive investors who want diversified exposure without picking stocks. They are not suitable for active traders or those who want Malaysian-stock-only exposure — robo-advisors primarily invest in global ETFs denominated in USD.