Versa Digital Cash Management Platform Affin Hwang - money market funds in your fingertips 💵 - Referral Code : 9KJDNJHB
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Versa, a digital cash management platform has partnered with Affin Hwang Asset Management (AHAM) to launch Versa app. At first when I heard the news I was wondering what was this hype about. Cutting the story short , Versa is a mobile 1st app that taps into Affin Hwang's money market fund (MMF) (Affin Hwang Enhanced Deposit Fund). This company/app has got an operating license given by Securities Commission Malaysia (Section 354 of Capital Markets & Services Act 2007).
During this pandemic period, bank interest rates and fixed deposits have dropped below the 2% range and a lot of fund companies (Public Mutual, Opus Asset) have launched money market funds. Even robo advisors like Stashaway launch similar portfolio called Stashaway Simple.
Money market funds give quite similar to fixed deposit rate returns but does not have lock in period and interest is earned daily. For a typical fixed deposit, if early withdrawal is done, you will forfeit all the interest. Money market funds are considered very low risk. Money market invests in short term, liquid and stable instruments. Traditional banks tap into money markets to maintain its deposit shortfall if too many people withdrew their deposits, this money market fund is then paid an interest by the bank for borrowing from money markets.
Like most of the modern investing apps in Malaysia aimed at millennials, it does not have sales charges and only need a minimum of RM1 (yes, just RM1) to start investing. Signing up is done 100% online, no need to visit any branches.
Versa advertises itself to be able to let investors earn 2.4% per annum interest rates based their forecast. Based on historical data on Affin Hwang Enhanced Deposit funds return, this could be doable. The fund made 2.77% per annum for the past 12 months. As compared to fixed deposits, the current rate on Jan 2021 is below 2% range around 1.75% only while inflation is probably around 3%.
Versa mentions that it's withdrawal policy is T+1 meaning that funds withdrawn will appear in bank account the next day. The cut off time for withdrawal request is 2:30PM (take note) if not the withdrawal request will be processed the next day.
I have signed up RM500 to see how the app works and will wait and see if I can get 2.4% per annum returns/interest as advertised. My wishlist for this app is the ability to pay using Boostpay like what Opus Fund Management is doing now with their bond and money market fund. Do not treat this account like an investment account, use it like a temporary place to keep your spare cash which you might need for emergency. These types of investments are more for maintaining your capital (original amount invested) rather than capital gains.
Overall, my 1st impression of the Versa app is good, the UI (user interface) , graphics and animations are very good, a lot of effort has been done to make the app very interactive and aesthetically pleasing. Personally, I can safely say it has the best UI among all fintech apps, a lot of thought has been put into the aesthetics of the Versa app. The app is also proudly a Malaysia founded app.
My opinion Versa is best used as a savings tool and treat it like a form of force savings, it offers security, stability to your savings in Affin Hwang Money Market fund. Versa is best used as a vehicle to park temporary cash for emergency purpose (hospital, credit card funds etc). It's not going to make anybody rich with spectacular returns but it will help a bit to fight erosion of money value due to inflation. The flexibility of withdrawing funds fast without penalty like (fixed deposits) makes Versa a better option than fixed deposits.
It's also better than putting money in FD (fixed deposits) where the minimum investments is at least RM5,000 for just 1 month and your money is locked, withdrawals also incurs penalty and forfeiture of interest (FD).
Updates 20210202
My deposits are still in approval process as it has to go through from Versa to Affin Hwang to purchase their Affin Hwang Enhanced Deposit Fund. An email will be sent when Affin Hwang has received the investment.
Updates 20210203
On the Versa app it still shows deposit in transit, seems quite slow for a money market fund in my opinion.
Updates 20210204
Finally my deposits are in and I was pleasantly surprise to get overnight interest also. Unlike fixed deposits where the interest is paid after the tenure, money market interest are paid daily.
Updates 20210720
After a very long while, I opened by Versa account to check. There's RM21 of lifetime gains yay, the growth is quite slow but I really enjoy looking at the statistics and the animations of in the app.
Updates 20210803
I deposited RM300 again after Versa announce their referral program just for fun. It's been quite some time since I deposited money, there's just so many different products and apps in the market now.
Versa also has been quietly working on delivering more future products on its app soon from my corresponding emails with them, they didn't offer specifics but my guess is there's going to be more Affin Hwang unit trust/mutual fund options in the app soon as at the moment there is only 1 lone single fund there (Affin Hwang Enhanced Deposit Fund).
Updates 20220213
Do be aware that there are people impersonating Versa app and services offering unusually high returns. Security Commissions of Malaysia has raised this warning on their investor alert list. So do download and use the correct Versa app.
Updates 20220510
Versa is no longer just doing money market cash management funds , this feature is now called Versa cash, they have introduced Versa Invest in the app which allows investing into more higher risk funds.
The Versa app needs to be updated to get this new feature.
Just in, Versa is having a customer referral program right now, sign up using my referral code 👉 9KJDNJHB, invest RM100 and both of us get RM10. Versa currently only invests in Affin Hwang money market fund (specifically Affin Hwang Enhanced Deposit Fund) Unlike fixed deposit, money markets allows withdrawals without any penalties.
There's also other millennial style money market sukuk fund from Public Mutual where only need RM100 to start. These funds are the Public Mutual e-series funds. For Public Mutual there is minimal sales charges as this is not an equity type of mutual fund/unit trust.
📌Public e-cash deposit fund
📌Public e-enhanced money market fund
📌Public e-sukuk fund
If you need more information about Cash Management Accounts , can watch this video discussion.
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