However, they soon realize that there are so many different investment options yet they have no time to research and compare. Stock prices are different every second . Is it impossible to create passive income while working? Fret not, we’ve devised the following three investment methods that can help you!
If you are looking for low-risk investments, time deposits could be an option for you. It is a relatively conservative investment option but it guarantees stability.
The risk is lower than investing in stock markets, though you cannot withdraw your funds for an agreed period of time. The Hong Kong Deposit Protection also makes sure your funds are protected – so even if the market crashes and the banks go bankrupt, you will get compensated up to HKD500,000.
For instance, if you deposit HKD100,000 for a fixed term of 12 months, there is generally a 0.05% to 1.30% annual interest rate.
Among all the offers above, CMB Wing Lung Bank by far has the highest annual interest rate of 1.30%. When you save HKD100,000 for a year, you will get HKD1,300 interest. However, is that enough to beat inflation?
For those who don’t have time to follow the stock market fluctuations and trends, investing in ETFs is definitely a great alternative. Generally speaking, ETFs are divided into “passive” and “active”. Passive ETFs are designed to track specific themes. For example, the Heng Seng Index tracks Hong Kong’s big market leaders, or we can look at specific industry indexes (such as new economy stocks, technology stocks), or even specific asset classes (such as gold ETFs, bond ETFs). Active ETFs conversely do not track the index, but are managed by a fund manager who chooses the assets to invest in. Bottom line, purchasing one lot of an ETF is equivalent to buying into multiple companies and assets.
Take the Vanguard S&P 500 ETF (VOO) as an example. The growth rate has reached 73.92%* in the past five years. If you invest $100,000 HKD to buy VOO five years ago, the current price is already worth $173,920. Therefore, investing in ETFs not only diversifies risks, but more importantly, you no longer need to keep an eye on market conditions all the time. You have reached the objective of having passive income while focusing on your full time job.
Not sure how to start investing in a global asset allocation? AQUMON is here to help! AQUMON’s robo-advisor personalizes an investment portfolio to provide optimal risk-adjusted returns that suit your preferences. Our star products SmartGlobal (a portfolio consisting of HK-listed ETFs) and SmartGlobal Max (a portfolio consisting of US-listed ETFs) monitors your portfolio 24/7 and triggers auto-rebalancing alerts when your portfolio drifts.
As full-time employees, we all want to have a bit of ‘Me Time’ after a gruelling day at work. Much less have the brain-power still to research and compare individual stocks? Fortunately, in an era of rapid technological developments, many financial products are now integrating big data and artificial intelligence analysis in its offering. If investors are optimistic about certain stocks in individual sectors, they can purchase a basket of similar stocks picked out by A.I programming with one click, thereby diversifying their investment and reducing single stock risks.
Take AQUMON’s SmartStock Portfolio ‘Profit Makers’ as an example. Logically, we all agree that companies that are consistently profitable will likely generate higher stock returns. But how exactly can we identify which companies are consistently profitable when there are thousands of stock choices and even more varying factors that influence stock performance? AQUMON does it in 3 steps by selecting a pool of high-quality stocks. Then the system ranks all the stocks that have been screened with our unique PowerFactor analysis.
Our algorithm selects 10-20 stocks from these rankings and calculates how much to invest in each (i.e. determining their respective portfolio weights). This results in a systematically diverse portfolio of the most consistently profitable US stocks.
AQUMON is a Hong Kong based award-winning financial technology company. Our mission is to leverage smart technology to make next-generation investment services affordable, transparent and accessible to both institutional clients and the general public. Through its proprietary algorithms and scalable, technical infrastructure, AQUMON’s automated platform empowers anyone to invest and maximise their returns. AQUMON has partnered with more than 100 financial institutions in Hong Kong and beyond, including AIA, CMB Wing Lung Bank, ChinaAMC, and Guangzhou Rural Commercial Bank. Hong Kong University of Science and Technology, the Alibaba Entrepreneurs Fund, affiliate of BOC International Holdings Limited, Zheng He Capital Management and Cyberport are among AQUMON’s investors.
The brand is held under Magnum Research Limited and is licensed with Type 1, 4 and 9 under the Securities and Futures Commission (SFC) of Hong Kong. AQUMON is also licensed by the U.S. Securities and Exchange Commission (SEC) and the Asset Management Association of China (AMAC).