Dividend Magic

Saving and Investing towards Financial Independence in Malaysia

Investment Portfolio

Tiger Brokers Review

By
Filed Under: Dividends, FI/RE, Financial Independence, Investment, Investment Portfolio, Sponsored, US Stocks 2

I have had an account with Tiger Brokers since 2020 but have yet to utilise it apart from trying out their interface and depositing a small amount in there.

If you are looking to trade international stocks and have yet to open an account with Tiger Brokers, you will be glad to know that there are huge perks to opening an account now.

Tiger Brokers Account Opening Referral and Promotion

Account Opening Rewards

  • 1 unit of Grab share
  • Unlimited commission-free trades for HK, SG, and China A-Shares for 365 days.
  • Unlimited commission-free trades for US stocks for 180 days. 

Account Funding Reward (Initial Deposit of SGD1,000 or more + execute 5 BUY trades)

  • SGD88 cash

The full T&C can be viewed hERE. The promotion lasts till 12 October 2022.

Why Tiger Brokers?

Fees

First off, as always, fees. Tiger Brokers’ zero-commission trading is huge and beats many other international brokers.

Now, zero commissions do not mean that trading of US shares is totally free because there is, of course, a platform fee of USD0.005 per share or a minimum of USD1 per trade. It is a fee, but it is cheaper in comparison to many other brokers. So, keep that in mind.

As I’ve mentioned many times, fees are important because they eat their way into your investment and you’ll find yourself paying a lot more than 1% at the end of day, say, 20 years.

You may think a 0.1% or a 1% fee is of no significance but with the compounding nature of long-term investing, we, as average investors, are looking at hundreds of thousands to millions of dollars in our investments at the end of the day.

Regulation and Protection

Tiger Brokers (Singapore) Pte Ltd is regulated by the Monetary Authority of Singapore (MAS).

Elsewhere, they’re also regulated by the SEC in the US, ASIC in Australia and HKSFC in Hong Kong. They’re compliant in all the countries they operate in so they’re safe. Apart from that, customer funds are held in a segregated trust account with DBS Bank Ltd. Custodian of investors’ shares is with the Central Depository (CDP) as well as overseas brokers.

Another important safety factor is that Tiger Brokers is listed on NASDAQ and under the ticker TIGR. This, in my book, adds credibility to Tiger Brokers as a brokerage platform. Their books and reports are easily accessible should you feel the need to refer to them as well.

Rewards

There’s a built-in rewards system for users of Tiger Brokers – Tiger Coins. By completing certain tasks (which aren’t all that hard) you’ll be credited with Tiger Coins which can be used to redeem rewards such as commission-free trades.

Account Opening and Registration

So, you’ve decided to open an account. Two types of accounts are available at Tiger Brokers – Margin and Cash Upfront. I’ll always recommend a cash upfront account to start with. If you’ve been trading and investing for a long time and are confident in your abilities, you can always move up and open a margin account.

Link to register hERE.

Funding Your Tiger Brokers Account

The are many ways to move your funds to Tiger brokers but the best I’ve found and that’ll save you fees in the future is this: You’ll have to open a bank account in Singapore. Basically, you transfer your monies to an SG bank account (you can use services like Transferwise etc to save on fees) and then from there into your Tiger Broker’s account.

Another transfer method to note is to use Wise which is integrated directly into the Tiger Trade APP, as part of a collaboration with Tiger Brokers. This method is fast and easy once it is set up. More info can be found here: https://www.tigerbrokers.com.sg/help/detail/87168024.

What I’ll be Using

Because of Tiger Broker’s low fee structure, I’ll be looking to add a ton of long-term international stocks here. Especially US shares.

Love the rewards I get from trading as well in the form of Tiger Coins.

End.

Account opening rewards are looking good and you get rewards as you trade and invest.

If you’ve yet to sign up and want to, use the registration link hERE. Check out the full details of the promotion hERE.

Disclaimer

This post is sponsored by Tiger Brokers.

T&Cs apply. Please visit our website for other applicable fees: https://www.tigerbrokers.com.sg/commissions/fees.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

A Review of CapBay – P2P Lending in Malaysia

By
Filed Under: FI/RE, Investment Portfolio, Other Investments 13

CapBay Referral Code (RM100)

If you’re signing up and registering with CapBay, don’t forget to use my code and link for a free RM100. To qualify, you’ll have to make the RM10K deposit and select one of the Auto Invest profiles (Conservative, Moderate and Aggressive). The full terms and conditions can be found here.

Register hERE.
Use my code: DIVMAGIC

CapBay Portfolio Update

An important note: First started investing in May 2021.

September 2024

Unfortunately, we’ve been hit with a default this time around.
RM1,305.68 to be exact. Of that RM1.3K, CapBay has managed to recover RM552.94.

On a brighter note, returns are not too bad – we’re at 7% annualised return. In total, I put in RM10K, and I got RM2K back, invested since May 2021.

I’ll continue to leave my money in there and let it roll, 7% per annum is not too bad at all. If and when it goes to above 10+%, then I’ll seriously consider depositing more.

CapBay is also having a few promotions on and off recently so if you’re looking to start investing, make sure to capitalise on that. Also, my code, for an additional RM100.

Register hERE.
Use my code: DIVMAGIC

July 2023

No defaults yet on my side and it’s amazing that the portfolio has been maintaining 11.1% for like.. forever. I’m going to check how this is calculated or if it is a bug..

As I only put in RM10,000 so far, since May 2021, this comes up to 17.95% returns in 2 years.

Nov 2022

Still happy with CapBay!

CapBay is also having a few promotions on and off recently so if you’re looking to start investing, make sure to capitalise on that. Also my code above for an additional RM100.

I’ll be adding in a little more money the next time they have a promo.

June 2022

I’m pretty happy and satisfied with CapBay. With the markets in turmoil, CapBay is the one that outshines my other investments for the year at an 11% annual return. A little lower of course once you take into account the fees.

CapBay is also having a few promotions on and off recently so if you’re looking to start investing, make sure to capitalise on that. Also my code above for an additional RM100.

May 2022

Many of you have been asking for an update on my P2P lending portfolio on CapBay. The good news is that there are still zero defaults! And the even greater news is that the annual return is still above 10% right now.

I prolonged the update a little because this month marks the 1 year anniversary of my investment in CapBay. We put in RM10K back in May 2021. And now, we’ve got a net return of RM780.51. That is a 7.8% return. Not too shabby compared to the markets now.

In light of the decent returns and zero defaults, I’ll be placing another RM10K into CapBay. I wish I could spare a little more but I don’t want to spread myself too thin.

If you’re thinking of giving CapBay a try, register hERE.
Use my code: DIVMAGIC and get RM100 for freeee.

Read on for the step-by-step guide to register and how to choose your portfolios.

January 2022

I invested RM10,000 in CapBay back in May 2021. The first update (as below) was in September 2021 in which I got RM262.77 back, amounting to a 2.62% ROI in 5 months.

Fast forward to January 2022, from the same RM10K in investment, we’ve got a net return of RM525.15. That’s a 5.25% return in 8 months.

Not sure if we’ll be able to reach 10% in returns at the end of one year. But we’ll check back again in May 2022! Still pretty happy with the returns AND of course, no bloody defaults.

If you’re thinking of giving CapBay a try, register hERE.
Use my code: DIVMAGIC and get RM100 for freeee.

Read on for the step-by-step guide to register and how to choose your portfolios.

September 2021

I invested RM10,000 in CapBay back in May 2021. Here’s how the portfolio is doing almost 5 months after.

I’ve gotten back RM262.77 which was of course reinvested again. That comes up to about 2.62% ROI in 5 months. It does seem a little low right now but bear in mind that due to the nature of financing, it’ll take a few months for each note to mature. We’re looking at an average time period of 6 months per note. Below is an example of a note that took about 2 months to mature.

For now, I’m happy with the 2% return in 5 months. And I’ll probably keep the money in for 1 year or maybe 2 then re-evaluate CapBay’s performance.

The best part, however, is the zero defaults so far. That has always been a concern when investing in P2P lending. With no defaults in 5 months, I’ll be continuing with CapBay for the foreseeable future.

The P2P Lending Scene in Malaysia

I’ve been receiving inquiries on and off on what P2P platform I’m currently in. And if you’ve been reading the blog for a while, you’d know I had some money in Funding Societies. However, due to their increasing defaults, I’ve pulled out most of my capital.

Over the past few months, I’ve been looking to re-invest in the sector. I’m on the lookout for lower risks and default rates, somewhere my money can grow steadily at a reasonable rate of return. Which lead me to CapBay.

Types of Loans – Business Term vs Invoice Financing

During P2P’s infancy days, the loans offered by most platforms consisted of mainly business term loans. Which is, of course, the essence of P2P financing i.e. You lend money directly to businesses for a fixed period, typically between 12 to 36 months.

However, it is when the defaults came in that investors realized just how risky it was to hand out loans willy-nilly. And of course, the importance of really diversifying and not putting your capital into a few loans. Instead, when it comes to P2P financing, diversifying over many loans is advisable.

Fortunately for me, my returns today are still in the positive region. I’ve almost withdrawn 100% of my capital with a net return of 10+% per annum.

Right now, I’m looking to get back into the P2P scene as the industry as a whole matures. And I’m looking to lower my default risk by going for primarily Invoice Financing. There is lower risk here because investors are essentially lending money in the short term to SMEs based on a transaction.

In short, when an SME sells their services to a buyer on credit, they often must wait up to 6 months to get their payment. Invoice Financing allows these SMEs access to upfront payment. With Invoice Financing, the SME has already made the sale and the risk of default is actually transferred to the corporate buyer. Typically, Invoice Financing is for the short term, you’ll normally see a loan term of not more than 6 months.

Why CapBay?

CapBay specializes in providing Invoice Financing to SMEs who supply to blue-chip companies and government-related entities. Among the few P2P players in Malaysia, CapBay currently has had no defaults SO FAR since their launch in February 2020. This is no easy feat and caught my attention right away and got me digging for more info about them.

As reported by Fintech News Malaysia, CapBay is the fastest platform to hit RM100 million in P2P Financing. Typically, fast growth leads to problems with risk. The fact that they’ve managed to achieve this growth while still maintaining a 0% default rate is impressive.

How CapBay Works

CapBay works a little differently from the platforms I’ve used. They’re encouraging ”Auto-investing” whereby you let the platform pick the loans to invest in. As you all know, I’m a big fan of automating investments and so I will be using their Auto Invest feature all the way.

You choose from 3 different Auto Invest Profiles based on their respective risk profiles and potential return – Conservative, Moderate and Aggressive. If however, you want to have better control of your capital, you can choose to customize.

Within these 3 different profiles, you’ll find a further 3 categories of notes:
1. Select: Safer and lower return notes
2. Motor: Dealer financing notes
3. Diversified: Riskier and higher return notes

There’ll be a section for you to read up on these on the platform itself.

Another thing to note: Your uninvested funds will earn an estimated 1.7% per annum. This is a special feature called CapBay Plus that ensures you continue to generate returns on uninvested funds if you utilize their Auto Invest.

Simple Steps to Get Started

CapBay Registration P2P

You’ll need RM10,000 to start

This one here got me thinking a little and I know RM10,000 is a huge amount to start with for many, myself included. But after looking at the 0% default rate for a year, as well as the expected net return of up to 10% per annum on their investment opportunities, I’ve decided to go ahead. I’ll be posting updates on the performance here, probably on a regular basis.

Registration

CapBay Registration

Registration took me about 5 minutes. All the usual KYC are required. I.e. pics of your IC and a 5-sec video upload.

If you don’t have a webcam, make sure you download the app and register there as you’ll need to upload a video during registration as part of their KYC requirements.

CapBay Referral Code

And finally, if you’re signing up and registering with CapBay, don’t forget to use my code and link for a free RM100. To qualify, you’ll have to make the RM10K deposit and select one of the Auto Invest profiles (Conservative, Moderate and Aggressive). The full terms and conditions can be found here.

Register hERE.
Use my code: DIVMAGIC

End.

My Portfolio

CapBay Registration P2P

I’ve added in RM10,000 to the Auto-Invest feature and selected the Aggressive profile.

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The Auto-Invest feature was quick and my funds are 40% invested in a few days. Returns range from 7.3% to 9.7% currently.

Look forward to future updates to my P2P portfolio.

Risks of P2P

Please understand that I consider P2P investing a high-risk venture. Even with CapBay’s focus on Invoice Financing, I still consider this to be a risky investment. But how else can you expect a potential net yield of up to 10% per annum.

This is why I’ve been doing a lot of research and looking around the Malaysian market. I’ll be testing the waters with CapBay and will let everyone know how it goes via my updates.

Dividend Magic’s Yearly Review

By
Filed Under: FI/RE, Financial Independence, Investment Portfolio 0

I’ll be using this anchor page to keep track of my overall investment portfolio. Updated yearly so I’ll be able to track and show a yearly gain/loss.

Moving forward, I’ll aim to keep my recording simple and clear-cut. So I’ll be able to track my yearly gain more easily. No more IRR, just simple yearly gain, including fresh capital and dividends reinvested.

The Year 2021

It has been a turbulent year. In terms of my portfolio, it has more or less stayed the same, which I am grateful for. The first half of 2021 saw prices plunge and then go up again in the latter part of the year.

My dividends have also increased ever so slightly to RM15,595.07 per annum in 2021. This is despite me having a smaller portfolio compared to 2020. Which is a win. Still, a long way to go to RM36K a year in dividends.

I’ve also managed to maintain a respectable savings rate in 2021 despite a drop in my income. Got a sizeable war chest ready to be deployed and I’m keeping an eye on a few local stocks as well as US ones. It has been a while where the Freedom Fund has been stagnant around the RM500K mark.

On the other hand, my crypto portfolio almost doubled in value from a year ago, this is after factoring in the huge year-end dip. I’ve also been consistent in putting money into my StashAway account. Returns have dropped compared to last year, but in the long run, I’m confident. My US portfolio has seen a drop come year-end, but we’re still positive.

My Investments

The Freedom Fund

Market value: RM501,858.09
Cash: RM100K
Dividends: RM15,595.07
Dividend yield: 3.33%

The Freedom Fund (US)

Crypto Portfolio

Gross investment: RM10,273
Market value: RM67,004
Capital gain: +552.23%

StashAway

Dividend Magic – Risk (36% Risk Index)
Gross Investment – RM48,000.01
Current Value – RM48,575.13
Time-weighted return – 10.19%
Money-weighted return – 2.79%

Dividend Magic US – Risk (30% Risk Index)
Gross Investment – RM10,000.00
Current Value – RM11,433.23
Time-weighted return – 14.33%
Money-weighted return – 14.33%

StashAway Simple
Gross Investment – RM4,500.00
Current Value – RM4,769.28

TOTAL
Gross Investment – RM62,500
Current Value – RM64,777.64
Gain/Loss: +3.64%

My Overall Investment Portfolio

Freedom Fund: RM601,858.09
Crypto: RM67,004
StashAway: RM64,777.64
Total: RM733,639.73

Goals for 2022

I will focus on getting my dividends up. I’ll be adding more positions throughout the year. I’m looking at you Scientex!

Also, will be looking to do a monthly DCA into Vanguard’s S&P 500 ETF. As of now, I’ll be purchasing it through Rakuten Trade until a better brokerage becomes available.

The Year 2020

What a year it has been. My portfolio tanked in March when Covid hit. It even went into the red, a first for me. I missed the glove boat.

Bet on the recovery and my portfolio managed to sail through 2020 with an almost 10% gain y-o-y. As the portfolio increases in value and diversification, long gone are the days of 15-20% capital gains. I’ll be aiming to rebalance and refocus my portfolio next year. Cutting underperforming stocks and adding more winners.

I’ll also be focusing on my US portfolio moving forward. I’ve also made a decision to keep my US portfolio hidden to maintain some form of privacy. Don’t worry you’ll still be able to view it in percentage (%) form.

My Investments

The Freedom Fund

Market value: RM545,778.21
Cash: RM46,350.83
Dividends: RM15,415.64
Dividend yield: 3.33%

The Freedom Fund (US)

Crypto Portfolio

Gross Investment: RM13,808
Market Value: RM34,424
Capital Gain/Loss: +149.30%

StashAway

Dividend Magic – Risk (36% Risk Index)
Gross Investment – RM14,001.00
Current Value – RM15,378.03
Time-weighted return – 8.01%

Dividend Magic US – Risk (30% Risk Index)
Gross Investment – RM10,000.00
Current Value – RM10,603.19
Time-weighted return – 6.03%

StashAway Simple
Gross Investment – RM12,500.00
Current Value – RM12,559.17

TOTAL
Gross Investment – RM36,501.00
Current Value – RM38,540.39
Gain/Loss: +5.6%

My Overall Investment Portfolio

Freedom Fund: RM607,544.68
Crypto: RM34,424.00
StashAway: RM38,540.39
Total: RM679,125.07

Goals for 2021

The Freedom Fund and StashAway performed solidly for me in 2020. Obviously, I’ll want to see my dividends go up in 2021. It dropped a little this year with a few companies in my portfolio electing to withhold dividends.

I hope to see dividends surpass RM20K per annum barring any unforeseen circumstances.

Also, I want to eventually have my total investments (excluding my US portfolio) reach RM750K in 2021 and RM1 million by 2025. Setting the bar a little low there I know but I’ve learnt that the key to happiness is low expectations. And with RM1 million in investments, I should be able to hit my dividend target of RM36,000 per annum.

On the other hand, I will also be pumping money into my US portfolio (which as mentioned above will be tracked only in %).

Now, to the best performing asset for me in 2020 – Bitcoin and Ethereum. Almost at a 150% return for me at the time of writing and it is increasing. I set out to keep crypto to a maximum of 10% of my portfolio. I’ll continue to hold onto them coins for now.

dividendmagic.com.my

I consider every one of you reading as a stakeholder of Dividend Magic. So an update of the website at the end of 2020 would be apt.

As mentioned on my About page, at the rate the blog is growing, we will definitely be hitting a million (and more) views next year. A big thank you to everyone that has been frequenting the blog and interacting with me on social media. I appreciate every follow, like, comment, and share you’ve been so generous with. I love the community we’ve built and the friends I’ve made along the way. We’re a small but tight-knit bunch in Malaysia.

If you haven’t already, follow me on Facebook, Instagram, and now  to keep up to date.

To those that have been wondering if I’m making money via ads on the blog, the answer is finally a yes. But it isn’t much, unfortunately.

I’ve opted for the minimum amount of ads as well as the best-optimized placement for readers.

Right now, ad revenue itself is able to cover the running costs of the blog which I’m super grateful for. I don’t see this growing significantly, maybe I’m doing something wrong with the ads. With running expenses covered, Dividend Magic will be here to stay.

End.

Dividend Magic - We can do it!

That is all there is to update. 2020 was scary, thankfully, my investments are doing all right now. As always, it is important to stay invested and to attack when the opportunity presents itself. There will of course be some missed opportunities and lessons to be learned along the way. All my mistakes, all my wins, you’ll be able to see them here on the blog.

I’ll be updating my portfolios on a monthly basis as usual come 2021. Have a happy new year and I’ll see everyone in 2021.