Having been watching and hearing a lot about
I got to know more about the company itself and the team behind it. I was impressed by both the team and the technology behind
Economic Regime-based Asset Allocation (ERAA)
I’ve put off opening an account for a while now as I wasn’t too sure what kind of ‘sophisticated investment strategies’ the company was going to apply to my hard earned money.
They call it the ERAA. In short:
1. You determine your risk levels
3. ERAA will re-adjust the asset allocation to maintain your previously determined risk level
The people behind StashAway has recently come up with StashAway Simple – a cash management fund in essence. They’re projecting returns of up to 2.4% p.a. Which is fucking great.
You get great liquidity with cash management funds. You can withdraw your money anytime. Comparing it to FDs, if you uplift your FD prematurely, you lose all interest you were meant to gain. No such thing with a cash management fund.
Also, with a projected return of 2.4%, it’s easily beating most FD rates right now with Malaysia experiencing all-time low rates.
As for its risks, they’re about as safe as FDs as StashAway Simple invests in money market instruments issued by banks themselves.
What I Like About StashAway
- As a retail investor, you get access to a multitude of investments from the US, Japan etc.
- You also pay fees only available to the big boys.
- Auto readjustment of your portfolio. You can leave your portfolio as it is for years and let StashAway handle it.
- Annual fees start at 0.8% and it goes down as you invest more.
I found that I was unable to pick and choose personally the assets which I want to invest in. The only choice I had as an investor was to reset my risk profile and look at the breakdown of assets to be invested in.
Why? This is in StashAway’s FAQ –
Based on your risk preferences, selected goal, and current economic regime, our algorithm carefully picks the ETFs most suitable for your goal. This allows us to provide the most optimal diversification personalized to you. As such, it is not possible for a customer to handpick the ETFs or the allocation.
StashAway I think is a godsend for people that don’t have the know-how and/or time to do their research and valuation of individual stocks. If it’s a simple buy and wait strategy you’re vying for then this is the platform you should use.
Instead of paying enormous and exorbitant fees for unit trusts and mutual funds here, go with StashAway. You’ll have AI invest for you, which means no emotional and irrational decisions by human fund managers.
With the Covid-19 pandemic, StashAway performed pretty well with my 36% risk portfolio. They managed to reduce losses as the market tanked in March and a few short weeks after, my portfolio was back in the green.
I’m pretty sure not everyone was able to predict such a quick recovery by the equity markets in such a short time which was why we didn’t see huge returns for StashAway’s portfolios.
In short, StashAway managed to weather the storm. The algorithm works and I’ll continue making recurring deposits.
I’ll also be storing a portion of my portfolio into StashAway Simple for that sweet >2% returns.
Have any of you started investing in StashAway? How is your porfolio doing? And for those who are planning to start out, please do share the portfolio mix you’ve decided on and why.
Getting Started – StashAway Step-by-step Guide
First things first, sign up at this link hERE.
Dividend Magic has partnered with StashAway to get you 50% off your fees for the first RM100,000 invested for 6 months.
Now, I didn’t have too much trouble with the account sign up. It took me about 5 minutes but I’ll guide you through it as best I can. With pics.
My Stashaway Portfolio
I will be updating my Stashaway’s portfolio on a quarterly basis.
Dividend Magic – Risk (36% Risk Index)
Gross Investment – RM10,000.00
Current Value – RM10,753.27
Time-weighted return – 3.25%
Gross Investment – RM7,500.00
Current Value – RM7,500.00