In the last blog post, Introduction to ETF, we have walked through ETF and its benefits. We believe that you have a brief idea on how ETF works. If you still hesitate to invest in ETF, you can read this blog post to have better understanding on ETF.
Generally, there are several reasons that hold back some investors from pumping in money in stocks trading:
Need more time in choosing a stock
Analysing a stock can be time consuming, as a thorough study on the technical and fundamental aspects of a stock is very crucial in stock picking.
Prefer a smooth ride in the market
Some stocks tend to be very volatile, as uncertainties such as news or announcements can bring a great impact to the share price within a short time.
Relatively bigger amount of fund to invest
Investing in multiple stocks cause contribute to a higher commission, as buying or selling each counter is charged separately.
Higher attention required to monitor position
Not every stock allows investors to buy and hold, as most of the stock price fluctuate based on the supply and demand of the stocks.
More time is needed to monitor your trade
Portfolio diversification plays an important role in risk management of stock trading. Hence, it is time consuming to monitor each stock in investors’ portfolio.
Looking for lower management fees than unit trust
Investing in unit trusts can be costly due to high management fee because it is highly monitored and managed by the fund managers.
ETF can act as an alternative to investors, as there are professional fund managers to select the basket of underlying assets where the fees are much cheaper than investing in unit trust. All the issues above can be solved, as it possesses the characteristics of unit trusts and stocks. Besides, investors can invest in TradePlus Shariah Gold Tracker ETF which is introduced to the market as the first-ever shariah-compliant commodity ETF in Malaysia now.
To know more about ETF, you can visit TradePlus website:
For more information, you can read:
To know more about ETF, please do not hesitate to contact us.
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