Versa has introduced a new product known as Versa Invest. It offers two portfolios actively managed by Affin Hwang Asset Management and global experts. These portfolios contain global funds of varying risks and returns.
Main benefits of Versa Invest
First, there is no sales and exit fees. Second, it offers portfolios made up of several types of funds that are not commonly accessible to the public. Its entry free is low, you just need RM 100 to start investing.
Portfolios on Versa Invest
The two portfolios on this platform are Versa Growth and Versa Moderate. A third portfolio, Versa Conservative is coming soon.
Versa Moderate is a balanced portfolio, with an average annual return of 7.2%. Its asset allocation is 32% equity and 68% fixed income. It aims to provide investors with regular income and moderate capital growth over a medium to long-term period through a portfolio of collective investment schemes.
Versa Growth is an aggressive portfolio with a higher risk for higher potential returns. Its average annual return is 13.2% over the past three years. Its portfolio consists of 62% equity and 38% fixed income. It aims to provide investors with capital growth over a medium to long-term period through a portfolio of collective investment schemes.
Fee
Although Versa does not charge a fee, you still have to pay the fund manager. The fee is around 1.04% per annum, which includes annual management fee (1% per annum) and trustee fee (0.04% per annum). Versa Invest is also subjected to fund-level fees of 0.6% ~ 0.76% per annum which are charged by its fund manager partners. These costs may include fees such as audit fees, trustee fees, and management fees.
All these fees are already included in the price of the unit. If you cash in RM100 into any of Versa Invest funds, the RM100 already includes the fund-level fees. Thus, there would not be any out-of-pocket expenses.
Withdrawal
The minimum withdrawal amount is RM100.
It takes up to six business days to process the withdrawal request. If the request is submitted before 2.30pm on a business day, it will be processed on the same day. However, request submitted after 2.30pm and on non-business days will only be processed on the next business day. We have to count from the processing day to estimate the day when the money will appear in the bank account.
For more information, you can click on this link.
Conclusion
Both the portfolios are actually fund of funds. It means the portfolio contains different underlying portfolios of other funds. Versa Invest states that the fund of funds model will help to achieve ultimate diversification, alleviation of risk and volatility. I am not too sure if this is true but Versa Invest does offer access to some funds which may be close to retail investors. If the future returns of these portfolios are really as good as stated, I think they could be good investment vehicles.
Referral code
If you are interested to open an account with Versa, do use my referral code (993Q8XD2). Both of us will receive a RM 10 reward if you make a first minimum deposit of RM 100. Go to this link to register now! Otherwise, you can go to its website to see if there is any latest reward.
