In today’s globalised world, with cross-border investment services readily available, an increasing number of Malaysians are exploring opportunities to diversify their investments abroad, including in the US markets. Gaining exposure to foreign markets allows investors to diversify their portfolios and hold stronger currencies.
If you are considering investing abroad, you will likely need to hold some foreign currencies in your investment account. While you wait for the right moment to execute a trade, this cash will remain idle in your account. You may also accumulate earnings from divestments that you do not plan to reinvest immediately.
While your cash is idling, it will not generate any returns. Additionally, converting your funds from US dollars to Malaysian ringgit could expose you to the risk of the ringgit weakening further against the US dollar. Frequent conversions are not only inconvenient but also incur conversion fees.
This is where the FSMOne USD Auto-Sweep Account can be beneficial.
FSMOne has recently introduced a USD cash management account that allows you to store your money, earn competitive returns, and invest at any time, offering a practical solution for managing your US dollar funds.
Read Also: StashAway, Versa, KDI: Complete Guide To Cash Management Accounts In Malaysia
How FSMOne USD Auto-Sweep Account Works?
Upon opting for the USD Auto-Sweep facility, your proceeds from cash dividends, coupon payments and bond maturities denominated in USD will be automatically swept from your USD Cash Account and invested into the USD Auto Sweep account so you can earn a decent yield.
The USD Auto-Sweep is a facility that automatically transfers your proceeds from cash dividends, coupon payments, and bond maturities denominated in USD from your USD Cash Account into the USD Auto-Sweep account. This allows you to earn a competitive yield on these funds.
As of 29 April 2024, the USD Auto-Sweep offers an indicative yield of 4.598% p.a.
The cash management account generates returns by allocating 90% of your USD cash excess in the iFast USD Enhanced Liquidity fund, which in turn invests in quality money market funds, term deposits and US treasuries. The remaining 10% of the cash balance will stay as cash in the account.
There is no requirement to maintain a minimum balance in the USD Auto-Sweep Account. You can top up your USD Auto-Sweep Account from your USD Cash Account or MYR Cash Account, with minimum deposits of USD 10 and MYR 100, respectively.
Potentially Earn A Decent Yield With No Lock-In Period
Typically, higher-return account facilities require locking in your money for a specified period. These accounts might be suitable for long-term savings that you do not need to access immediately. However, for investing purposes, you would not want to miss an opportune moment to make a trade.
With the USD Auto-Sweep, not only can investors earn competitive returns, but they also have the flexibility to access their cash reserves and deploy them for investment at any time. There is no lock-in period, and you will not face penalties for withdrawing your funds.
Moreover, the USD Auto-Sweep offers same-day withdrawals, allowing you to receive your money on the same day you submit a withdrawal request before 10 am on a business day.
Invest In Various Foreign Investments
For those who frequently invest in global markets, where stocks are denominated in foreign currencies, the FSMOne USD Auto-Sweep account is an ideal solution for managing your USD cash. This account enables you to trade in various currencies—including USD, MYR, HKD, and AUD—using a single account, eliminating the need for separate foreign currency accounts. This consolidation helps save on currency conversion fees when investing across products denominated in multiple currencies.
Additionally, with the Malaysian ringgit weakening, many Malaysians are experiencing the impact of higher prices and diminishing purchasing power. Diversifying your investments into stronger currencies, such as the USD, is one strategy to mitigate these economic pressures.
Read Also: Guide To Multi-Currency Accounts And Wallets In Malaysia
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