6 Key Insights From iFAST Corporation Ltd’s CEO Investors Should Know

Some of you reading this might have come across the site.

The website, which is a distribution platform connecting unit trusts with individual investors, is owned by iFAST Corporation Ltd (SGX: AIY). iFAST serves both the do-it-yourself (DIY) investor as well as financial firms. As such, its business can be divided into two main buckets: the B2C (business-to-consumer) division and the B2B (business-to-business) division.

Recently, iFAST’s chairman and chief executive, Lim Chung Chun, gave an interview. Here are six key insights I had picked out that may be useful for investors:

1. The long road ahead– click here

2. Bigger market trumps market share – click here

3. Acquiring growth– click here

4. Helping investors – click here

5. Keeping it simple

“I’ve seen many products sold in this industry which may not be helpful to the investor.

They could certainly boost short-term profits for the financial institution, but may not provide a decent return for investors in the long run. These may be products that are opaque, leveraged, or have derivative elements.”

Following the fourth point where Lim shared his belief about the importance of helping investors, he also does not favour complicated investment products that may be opaque and/or leveraged. He believes that investors should be able to generate decent returns using simple products. He added:

“We always target relatively simple products, such as unit trusts, bonds, ETFs and stocks. They are basic building blocks for every investor, and are all that investors require to generate decent returns for themselves in the long term. We don’t feel the need to come up with all kinds of complicated products to fatten our short-term profit margins.”

6. The challenges ahead

Lim believes that there will be changes and constant challenges in the wealth management industry. He feels that it is paramount for iFAST to remain relevant to its clients.

Above all, Lim believes in the value of challenging ourselves:

“Whatever looks unreachable for most of us is actually achievable, once you put your mind to it – that’s where commitment and planning come in.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn't own shares in any company mentioned.