MYTHEO Review: Japanese Innovation for Malaysian Robo Investing

MYTHEO has been around for quite some time during the FinTech boom of early 2019. Interestingly, it is the 2nd robo advisory to be approved by SC. Yet, not many local investors have covered it. If you’re looking for a short and sweet MYTHEO review, you’ve come to the right place.

Who’s Behind MYTHEO?

MYTHEO is a robo advisory app operated by GAX MD Sdn Bhd, joint venture company between Silverlake Digital INX Sdn Bhd and Japanese fintech player Money Design Co Ltd. Silverlake is a well-known local technology company that provides software services to local banks, whereas Money Design operates THEO, the Japanese robo advisory app that is currently one of the largest in Japan. Thus, MYTHEO is a combination of MY for Malaysia and THEO for the original robo investing app from Japan. You can read more about their origins here.

What does MYTHEO do?

MYTHEO is a robo advisory and digital investment app that provides comprehensive digital discretionary investment services including client profiling, risk assessment, compliance checking, asset allocation, payment settlement, trade execution, portfolio rebalancing, and reporting. All of this is delivered digitally and seamlessly at low cost via the web and mobile applications.

What makes MYTHEO different?

MYTHEO invests in a wide range of ETFs. From the thousands of ETFs available in the US, the algorithm selects 29 available for investors. This filtering process ensures the highest liquidity and most efficient ETFs are selected.

Investors go through a typical KYC process and risk stratification, from there MYTHEO will suggest a portfolio with a combination of different asset classes to suit your risk profile.

MYTHEO algorithm also purportedly uses AI and machine learning to parse data not only from market information but also from other available news sources and media to determine the correlation between sentiment and performance of the ETFs to help improve returns.

MYTHEO is also not goal-based, but functional portfolio-based. Your risk profile is used to craft a customised portfolio which is segregated into income, growth, and inflation-hedged asset classes.

How to Deposit into MYTHEO Account?

MYTHEO has very smooth interface. From the signup step to the investing and monitoring of performance, I’ve only used the mobile app. Deposits are made using FPX.

You can set recurring transfers every month to automate your investment.

What Does MYTHEO Invest in?

As mentioned earlier, MYTHEO selects a pool of ETFs and your portfolio is constructed from that pool.

I set my risk profile to maximum, so my profile is currently set to 92% Growth, 4% Income and 4% Inflation-Hedge mix.

mytheo review

Due to its diverse selection, I’m currently invested in:

  • 13 different ETFs
  • 10 different Income ETFs
  • 9 various ETFs for Inflation Hedge

Due to the large numbers of ETFs inside my portfolio, I won’t be listing them out for now. Since my portfolio was set up as a test with a small DCA of RM100 monthly, essentially only a little amount went into each ETF.

What Fees Does MYHTEO Charge?

MYTHEO charges a pretty hefty fee of 1% for assets under management of less than RM30,000. This is higher than the other robo advisory in Malaysia.

From my short sleuthing online, it seems that users have a problem with the fees with many exclaiming that 1% is really quite expensive.

How is My Experience Using MYTHEO?

From the initial setup, KYC and smooth user experience of using the mobile apps, I’d say my experience has been positive. Everything works as it should, and I like the idea of being in control of my portfolio and the ability to customise it should I wish.

I didn’t tinker with the portfolio construction and just let MYTHEO do its thing though.

How is MYTHEO’s Performance So Far?

MYTHEO is part of my public money experiment pitting 6 different robo advisors against each other started in April 2021. My MYTHEO portfolio came in 5th in 2021, with a -6.57% one-year total return since inception as of 9th May 2022.

Should You Invest with MYTHEO?

MYTHEO is another contender in the space of robo investing. Their mobile apps are user-friendly, everything works as it should. The customisable portfolio is a big plus. However if you’re queasy about fees, MYTHEO definitely doesn’t shine in that aspect.

I hope you like this MYTHEO review. If you’ve invested into MYTHEO, feel free to leave some comments below and let me know your experience!

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