P2P Financing Platform Fundaztic Launches Capital Protection Schemeby Vincent Fong August 27, 2019
Fundaztic a peer to peer (P2P) financing platform approved by the Securities Commission Malaysia announced today the introduction of Principal Protect.
The Principal Protect scheme is offered by Fundaztic in a bid to enhance investor trust and confidence by providing an assurance that investors will not incur capital losses if investments are made per simple conditions set
Investors who have invested up to RM 100,000 and above will be protected RM 30,000 and investors below the investment sum will be protected up to RM 10,000 based on the following criteria:
- Principal Protect has a built in mechanism within the system that will automatically kick- in with every 100 Notes in the member’s portfolio.
- The highest invested amount in a portfolio must not exceed three times the average investment amount per note. Example if the average investment for a portfolio of 100 notes is RM1,000 per note, only investments worth up to RM3,000 will be covered by Principal Protect.
Fundaztic told Fintech News Malaysia in a media statement that, reimbursements for such cases will be issued within the 10th working day of the following month.
Speaking at the launch of Principal Protect, Kristine Ng, Chief Executive Officer, further explained that,
“Principal Protect does not require members to sign-up or opt-in. It is automatically provided as soon as the member meets simple conditions set.
These conditions comprise of what we have been advocating all these while and that is to build a portfolio of at least 100 Notes, in as short a time as possible through diversification into all Note types issued and investing in almost equal amount to manage risks involved. Therefore, as long as a member has invested in at least 100 Notes and in amounts that do not deviate more than 3 times from the average amount invested per Note, the investor automatically enjoys Principal Protect.”
She added, “Fundaztic is proud to be the first P2P financing platform to provide protection and guarantee on a portfolio basis.”
Fundaztic is founded by a group of prominent ex-bankers and a lawyer. It is a company with a paid-up capital of RM15.5 million and other principal shareholders include Mezzanine Ventures Sdn Bhd which is held 100% by Amcorp Capital Markets Sdn Bhd, which in turn is a wholly-owned subsidiary of Amcorp Group Berhad and Benjamin Teo.
In October 2018, the company set a record in the local fundraising scene by achieving RM 3 million of funding through 64 investors in just 38 minutes via PitchIN.
As of end July 2019, Fundaztic hosted 763 investment notes on its website, with a total funding campaign of RM59.9 million and have disbursed RM55.2 million towards the 725 investment notes that have been fully funded.