BEST Invest is an online unit trust platform from Bank Islam Malaysia Berhad (BIMB Investment) that offers investors the choice to dip into Shariah and ESG compliant unit trusts from BIMB. In this BEST Invest review article, I’ll provide a brief look into this investment app.
Who’s Behind BEST Invest?
BEST Invest is owned by Bank Islam Malaysia Bhd’s wholly-owned unit BIMB Investment Management.
What does BEST Invest do?
BEST Invest mobile app provides users an easy way to invest in BIMB’s Shariah-compliant funds. According to this article it is a “Robo-Intelligence Sustainable Shariah-ESG investing online platform” – pretty wordy for basically a mobile interface with customised portfolio allocation based on your risk profiel.
What makes BEST Invest different?
BEST Invest prides itself in being the first bank-backed Islamic Asset Manager in the region to be a signatory of United Nations-Supported Principles for Responsible Investment (UNPRI) and has been focusing on ESG investing since 2015. ESG is a pretty big theme right now and BEST provides discerning Shariah investors the easiest way to get exposure to this sector.
According to their website FAQ, BEST Invest employs something called a “Robo Intelligence” which utilises big data, analytics and algorithms. Apparently it allows you to decide on which unit trust funds you wish to invest in, by how long and how much. BEST Invest will then manage your investment portfolio according to the preference set.
“We are currently managing more than RM1 billion of ESG investment assets. Our Global Shariah-ESG Equity fund is currently the best-performing three-year investment returns and also the largest global shariah equity fund in Malaysia,
chief executive officer Najmuddin Mohd Lutfi
How to Deposit into BEST Invest Account?
All transactions are done via the app. You can choose to have recurring deposits or one-off deposits based on your own preference. Funds are deposited via FPX and will be processed once BIMB receives it.
The interface feels a bit clunky though – it’s not really user-friendly in my opinion.
What Does BEST invest in?
My portfolio is set to Aggressive, so my personal portfolio looks like this:
90% of my portfolio is allocated to equities while 10% is in money market. This allocation is based on BEST Invest’s Robo-Intelligence algorithm.
Equity
- BIMB-Arabesque I Global Dividend Fund 1
- BIMB-Arabesque Global Shariah Sustainable Equity Fund (BGSEF)
Money Market
- BIMB ESG Sukuk Fund Class A
What Fees Does BEST Invest Charge?
There are no management charges as BEST is not really a robo advisory. However, you incur fees indirectly as the unit trust funds you invest in has management fees.
How is My Experience Using BEST Invest?
I’m pretty neutral on BEST. Granted, I only get exposure to BIMB’s own offerings, similar to other online unit trust platforms like KDI, Raiz and Versa Invest.
How is BEST Invest Performance So Far?
BEST Invest is part of my public money experiment pitting 6 different robo advisors against each other started in April 2021. My BEST Invest portfolio came in 2nd in 2021-2022, with a -4.19% one-year total return since inception as of 28th April 2022.
Should You Invest with BEST Invest?
It’s a good choice if you want direct exposure to ESG and Shariah-compliant funds. Plus, the company charges zero fees which make it attractive.
Are there alternatives? Yes, Wahed Invest is a big contender in this aspect. If you’re looking for Shariah-compliant robo advisory, then Wahed is second to none.