Are you looking for a simple way to manage your cash in Singapore? StashAway Simple might be the solution you need. StashAway Simple is a cash management portfolio that allows you to earn interest on your cash while keeping it safe. In this StashAway Simple review, we will examine how it works and whether it is the right choice for you.
StashAway Simple is designed for those who want to earn a return on their cash without taking on too much risk. It is an ultra-low-risk portfolio with a projected return of up to 3.5% p.a. It is suitable for those with an investment time horizon of 6 to 12 months.
If you have a longer time horizon and are willing to take on slightly more risk for higher projected returns, you might consider StashAway Simple Plus, which has a projected return of 4.6% to 5% p.a.
1-Min Read: StashAway Simple Singapore
Ever feel overwhelmed by the world of investing? StashAway Simple, a Singapore-based robo-advisor, is here to change the game! Here’s the lowdown on what makes it so appealing:
- Effortless Investing: Ditch the research and analysis. StashAway Simple asks questions about your risk tolerance and goals, then builds a personalized portfolio using globally diversified ETFs.
- Focus on What Matters: No more stressing about picking individual stocks or bonds. StashAway Simple takes care of the heavy lifting, letting you focus on what truly matters.
- Designed for Singaporeans: This platform understands the Singaporean financial landscape. Invest your Singapore Dollars (SGD) and enjoy the convenience of a familiar interface.
- Low Minimum Investment: Starting small is no problem! StashAway Simple allows you to begin your investment journey with an amount that fits your budget.
- Peace of Mind: Relax, knowing your money is in good hands. StashAway prioritises security and uses a globally diversified approach to manage risk.
Are you curious to explore the potential of StashAway Simple for your financial goals? Our comprehensive guide dives deeper into the details, explaining fees, investment strategies, and how they can supercharge your path to financial success in Singapore.
Let’s unlock the world of investing together!
What Is StashAway Simple?
If you’re looking for a simple and low-risk way to manage your cash, then StashAway Simple is a great option for you. It is a cash management account offered by StashAway, a robo-advisor that provides investment solutions to individuals.
StashAway Simple is not an investment in the traditional sense, but it is a great way to earn a higher return on your cash than you would with a typical savings account. Instead of earning a low interest rate, you can earn up to 3.7% p.a. with StashAway Simple. This is achieved by investing your cash in low-risk funds such as the LionGlobal SGD Money Market Fund.
One of the best things about StashAway Simple is that it is incredibly easy to use. You can open an account in just a few minutes and start earning a higher return on your cash right away. There are no lock-in periods or withdrawal fees, so you can access your cash whenever you need it.
StashAway Simple is also a great way to diversify your cash holdings. By investing in low-risk funds, you can spread your risk and reduce the impact of market volatility on your cash. This makes StashAway Simple a great option for those who want to protect their cash while still earning a decent return.
Overall, StashAway Simple is a great option for anyone who wants to earn a higher return on their cash without taking on too much risk. It is easy to use, low-cost, and provides a great way to diversify your cash holdings.
Features and Benefits
StashAway Simple is a cash management portfolio that offers you a hassle-free way to earn returns on your cash. Here are some of the features and benefits that make StashAway Simple an exciting option for Singaporean investors like you.
Competitive Returns
StashAway Simple offers projected returns of up to 2.2% p.a. This is a competitive rate compared to other cash management options in Singapore. Additionally, StashAway Simple offers higher returns than traditional savings accounts, which typically offer interest rates of around 0.05% p.a.
No Minimum Balance
StashAway Simple has no minimum balance requirement, which means you can start investing with any amount you’re comfortable with. This makes it an excellent option for those who are just starting with investing or those who don’t want to commit a large sum of money.
Immediate Access to Funds
StashAway Simple offers you immediate access to your funds. This means you can withdraw your money at any time without any penalties or fees. This feature makes StashAway Simple an excellent option for those who need access to their money quickly.
In summary, StashAway Simple is an excellent option for Singaporean investors who want to earn returns on their cash without committing to a large sum of money. With competitive projected returns, no minimum balance requirement, and immediate access to funds, StashAway Simple is a hassle-free way to grow your wealth.
Understanding the Risks
Investing always comes with risks, and StashAway Simple is no exception. While the platform is designed to be low-risk, there are still some factors to consider before investing your money. Below are the two main risks to keep in mind:
Market Volatility
One of the biggest risks of investing is market volatility. This refers to the tendency of the market to fluctuate over time, sometimes drastically. While StashAway Simple is designed to be a low-risk investment option, it is still subject to market volatility. This means that the value of your investment may go up or down depending on market conditions.
However, StashAway Simple is designed to be a short-term investment option, with a recommended investment horizon of 6-12 months. This means that you are less likely to be impacted by market volatility, as you will not be invested in the market for an extended period of time.
Credit Risk
Another risk to keep in mind when investing in StashAway Simple is credit risk. This refers to the possibility that the borrower (in this case, the issuer of the bonds that StashAway invests in) will default on their payments. If this happens, it could impact the value of your investment.
However, StashAway Simple invests in high-quality bonds with low credit risk. This means that the likelihood of default is low, and your investment is relatively safe.
Overall, while there are risks associated with investing in StashAway Simple, the platform is designed to be a low-risk investment option. By keeping your investment horizon short and investing in high-quality bonds, you can minimise your risk and potentially earn a decent return on your investment.
How to Get Started with StashAway Simple
Are you a beginner investor looking for an ultra-low-risk portfolio? StashAway Simple might be the perfect platform for you to start investing in Singapore. Here’s how you can get started:
Step 1: Open an account
The first step is to open an account on the StashAway website. You can sign up for free using your email address or Facebook account. Once you have signed up, you will need to complete your profile by providing some personal information such as your name, date of birth, and contact details.
Step 2: Fund your account
To start investing with StashAway Simple, you will need to fund your account. You can do this by transferring cash from your personal bank account or using funds from your Supplementary Retirement Scheme (SRS) account. There is no minimum investment amount required, which makes it ideal for beginner investors.
Step 3: Choose your portfolio
StashAway Simple offers two cash management portfolios: Simple and Simple Plus. Simple is an ultra-low-risk portfolio with a projected return of 2.2% p.a. and is suitable for those with an investment time horizon of 6 to 12 months. Simple Plus is a slightly higher-risk portfolio with a projected return of 2.4% p.a. and is suitable for those with an investment time horizon of 12 to 18 months.
Step 4: Monitor your portfolio
Once you have chosen your portfolio, StashAway Simple will automatically manage it for you. You can monitor your portfolio’s performance through the StashAway website or mobile app. StashAway Simple is an AI-guided platform, which means that it uses artificial intelligence to manage your portfolio and optimise your returns.
Step 5: Withdraw your funds
If you need to withdraw your funds, you can do so at any time without any penalties or fees. Simply log in to your StashAway account and initiate a withdrawal request. Your funds will be transferred to your personal bank account within 2 to 3 business days.
Investing in Singapore has never been easier, thanks to StashAway Simple. With its ultra-low-risk portfolios, beginner investors can start investing without worrying about losing their money. Sign up for StashAway Simple today and start your investment journey!
Tip: Rebalance Periodically
As your overall investment portfolio grows, consider rebalancing your asset allocation across StashAway Simple and your other investments to maintain your desired risk profile.
This helps to mitigate risk and ensure your portfolio stays aligned with your risk tolerance over time. There are online portfolio rebalancing calculators available to help you with this process.
Comparing StashAway Simple to Other Investment Options
If you’re looking for a low-risk investment option, you may be considering StashAway Simple. But how does it compare to other investment options in Singapore? Let’s take a look.
Fixed Deposits vs StashAway Simple
Fixed deposits are a popular investment option in Singapore, but they may not offer the best returns. StashAway Simple, on the other hand, offers a projected return of 2.2% p.a. for those with an investment time horizon of 6 to 12 months. If you’re willing to take on slightly more risk for higher projected returns, you could consider StashAway Simple Plus, which has a projected return of 4.6% p.a. [1]
Singapore Savings Bonds vs StashAway Simple
Singapore Savings Bonds are a low-risk investment option that offers a higher return than fixed deposits. However, they have a longer investment time horizon, which may not be suitable for some investors. StashAway Simple, on the other hand, offers a shorter investment time horizon of 6 to 12 months. Additionally, StashAway Simple has a projected return of 2.2% p.a., which is comparable to the returns offered by Singapore Savings Bonds. [2]
Other Robo-Advisors vs StashAway Simple
There are several other robo-advisors in Singapore, such as DBS, Syfe, EndowUs, AutoWealth, and Saxo. However, StashAway Simple stands out because of its low-risk investment options. StashAway Simple is an ultra-low-risk portfolio that invests in low-risk funds, making it a great option for those who want to invest without taking on too much risk. Additionally, StashAway Simple has no management fees, making it a cost-effective option for investors. [3]
In summary, StashAway Simple is a low-risk investment option that offers a projected return of 2.2% p.a. for those with an investment time horizon of 6 to 12 months. It compares favourably to other investment options such as fixed deposits and Singapore Savings Bonds. Additionally, StashAway Simple is a cost-effective option compared to other robo-advisors in Singapore.
Fee Structure and Expenses
StashAway Simple offers a transparent and affordable fee structure that is easy to understand. As a beginner investor, you can expect to pay an annual management fee of 0.15%, which is lower than the industry average. This fee is charged by the underlying fund manager and is embedded in the projected rate. The average expense ratio of the two underlying funds is 0.29%, and there is a rebate of 0.138% that StashAway awards back to you when they receive it [1].
There are no hidden fees or surprise charges with StashAway Simple. The only additional fees you may encounter are the ETF manager fee of 0.2%, forex transaction fees, and currency conversion fees between non-USD and USD deposits [2]. However, these fees are minimal and won’t significantly impact your returns.
StashAway Simple is committed to keeping fees low, making it an excellent choice for investors who want to get the most out of their money. With StashAway Simple, you won’t have to worry about high fees eating into your returns, so you can focus on achieving your financial goals.
Overall, StashAway Simple’s fee structure is one of the most competitive in the industry, and their commitment to keeping fees low is commendable. If you’re looking for an affordable and transparent investment platform, StashAway Simple is an excellent choice.
[1] StashAway Pricing: Transparent Fee Structure and Investment Costs | StashAway Singapore
[2] StashAway Review 2021 – How It Works, Fees Charged, Signing Up, etc. | MoneyKinetics
StashAway Simple for Retirement Planning
If you’re looking to plan for your retirement, StashAway Simple offers a range of options to help you achieve your financial goals. Whether you’re considering utilising your Supplementary Retirement Scheme (SRS) funds or building a retirement income portfolio, StashAway Simple can be a valuable tool to secure your financial future.
Supplementary Retirement Scheme (SRS) Funds
By leveraging your SRS funds, you can take advantage of tax benefits while preparing for your retirement. StashAway Simple allows you to strategically allocate your SRS funds into diversified investment portfolios, providing the potential for long-term growth.
Retirement Income Portfolio
StashAway’s Retirement Income Portfolio is specifically designed to cater to your retirement needs. With a focus on capital preservation and generating a sustainable income stream, this portfolio aims to provide you with financial security during your retirement years. It offers a balanced approach to risk and return, aligning with your long-term retirement objectives.
Additional Features
StashAway Simple Plus
StashAway Simple Plus is an upgraded version of StashAway Simple. It offers higher projected returns of up to 2.4% p.a. compared to 2.2% p.a. for StashAway Simple. The minimum investment amount for StashAway Simple Plus is SGD 10,000, which is higher than the SGD 1 for StashAway Simple. However, the lock-in period is shorter at only 3 months compared to 6 months for StashAway Simple.
Insurance Options
StashAway offers optional insurance coverage for its clients. The insurance coverage is provided by either Manulife or Prudential. The insurance options available are:
- Personal Accident Insurance
- Critical Illness Insurance
- Term Life Insurance
The insurance premiums are paid separately from the investment fees and are deducted from the client’s cash balance. The insurance coverage is optional and clients can choose to opt-out at any time.
LionGlobal SGD Enhanced Liquidity Fund
StashAway Simple and StashAway Simple Plus invest in the LionGlobal SGD Enhanced Liquidity Fund. This fund invests in short-term fixed income securities and has a focus on capital preservation. The fund aims to provide a stable return with low volatility. The LionGlobal SGD Enhanced Liquidity Fund is managed by Lion Global Investors, which is a well-established asset management company in Singapore.
Overall, StashAway Simple and StashAway Simple Plus offer attractive investment options for those looking for low-risk investments with projected returns that are higher than traditional savings accounts. The optional insurance coverage and the investment in the LionGlobal SGD Enhanced Liquidity Fund add to the appeal of these products.
Educational Resources
StashAway is committed to helping you make informed decisions about your investments. That’s why they offer a variety of educational resources to help you learn more about investing and financial planning.
StashAway Academy
StashAway Academy is a free online resource that provides you with a wealth of information on investing, financial planning, and more. It includes articles, videos, and interactive tools that can help you better understand the world of investing and make more informed decisions.
Learn
StashAway’s Learn section is another great resource for those looking to learn more about investing. It includes articles and videos on a variety of topics, including how to create a financial plan, how to choose the right investment strategy, and more.
Financial Plan
StashAway also offers a free financial planning tool that can help you create a personalised financial plan based on your goals and risk tolerance. With this tool, you can get a better understanding of how much you need to save and invest to reach your financial goals, and you can adjust your plan as needed to stay on track.
Whether you’re new to investing or you’re an experienced investor looking to learn more, StashAway’s educational resources can help you make more informed decisions and achieve your financial goals.
Customer Experiences and Recommendations
Are you wondering what other customers think about StashAway Simple in Singapore? Here are some reviews and recommendations from satisfied customers.
Reviews
Customers have been raving about how simple and easy it is to use StashAway Simple. According to Trustpilot, one customer said, “Stashaway Simple is simple. Really good product offering. Simple is simple. No hard sell. Does the job if you have funds to be stashed away. Decent returns.”
Another customer on MoneySmart said, “I love how easy it is to use StashAway Simple. The projected return of 2.2% p.a. is a great bonus and I feel like my money is in good hands.”
Recommendations
Customers have also been recommending StashAway Simple to their friends and family. One customer on SingSaver said, “I highly recommend StashAway Simple to anyone who wants to earn a projected 3.7% p.a. on their savings. It’s a great way to grow your money without having to worry about minimum balances or lock-ins.”
Another customer on MoneySmart said, “If you’re new to investing, StashAway Simple is a great way to get started. The fees are reasonable and the portfolios are well-diversified, so you don’t have to worry about losing your money.”
Customer Service
Customers have also been impressed with StashAway Simple’s customer service. According to Trustpilot, one customer said, “I had some questions about StashAway Simple and their customer service team was very helpful. They answered all of my questions and made me feel confident in my investment choices.”
Overall, customers have had great experiences with StashAway Simple in Singapore. With its simple and easy-to-use interface, reasonable fees, and great projected returns, it’s no wonder why customers are recommending it to others.
Final Thoughts on StashAway Simple
Congratulations! You have learned about StashAway Simple and its benefits. As a cash management solution, StashAway Simple offers a great way for you to achieve your financial goals. With its low-risk portfolio, you can earn up to 2.2% projected return per annum for an investment time horizon of 6 to 12 months.
StashAway Simple is an excellent option for those who want to save money and earn returns without taking on too much risk. It’s perfect for people who want to set aside money for a short-term goal, such as a holiday or a down payment on a house.
If you have a longer investment time horizon, you can consider StashAway Simple Plus, which offers higher projected returns with slightly more risk. With StashAway Simple Plus, you can earn up to 2.5% projected return per annum for an investment time horizon of 12 to 18 months.
Overall, StashAway Simple is a great option for those who want to save money and earn returns without taking on too much risk. It’s easy to use, affordable, and flexible, allowing you to make withdrawals anytime.
In conclusion, if you’re looking for a savings account that offers higher returns than a traditional bank account, StashAway Simple is definitely worth considering. With its low-risk portfolio, you can earn returns without putting your money at too much risk. So, what are you waiting for? Open a StashAway Simple account today and start achieving your financial goals!
Frequently Asked Questions
What are the latest user opinions on StashAway Simple on Trustpilot?
If you are wondering what other users think about StashAway Simple, you can check out the latest reviews on Trustpilot. As of April 2024, StashAway Simple has a rating of 4.5 out of 5 stars on Trustpilot, based on over 1,000 reviews.
Many users appreciate the ease of use, low risk of the investment, and the competitive interest rate offered by StashAway Simple.
How does the performance of StashAway Simple compare to traditional fixed deposits?
StashAway Simple offers a projected return of 3.7% per annum, higher than most traditional fixed deposits in Singapore. While fixed deposits provide a guaranteed return, they usually have lower interest rates and more extended lock-in periods.
StashAway Simple, on the other hand, allows you to withdraw your money anytime without penalty, making it a more flexible option for short-term savings.
Can you lose money with StashAway, and how common is it?
Like any investment, there is always a risk of losing money with StashAway. However, StashAway uses a risk management strategy to minimise losses and maximise returns. StashAway Simple is designed to be a low-risk investment option with a mainly cash and short-term government bonds portfolio.
While there is no guarantee that you will not lose money, the risk of losing a significant amount is relatively low.
What are the safety measures implemented by StashAway to protect investments?
StashAway takes the security of your investments seriously and implements several safety measures to protect your money. StashAway uses bank-grade security measures, such as two-factor authentication and SSL encryption, to ensure that your personal and financial information is secure.
Additionally, your investments are held in a custodian account with a licensed trustee, providing an extra protection layer.
How compelling does StashAway Simple offer the interest rate?
StashAway Simple offers a projected return of 3.7% per annum, higher than most traditional fixed deposits in Singapore. While the interest rate is not guaranteed, it is reviewed regularly and adjusted based on market conditions.
StashAway Simple offers a flexible investment option, allowing you to withdraw your money anytime without penalty.
What are the unique benefits of choosing StashAway Simple Plus over other investment options?
StashAway Simple Plus is designed for investors willing to take on slightly more risk for higher projected returns. With a projected return of 4.6% per annum, StashAway Simple Plus offers a higher interest rate than StashAway Simple.
Additionally, StashAway Simple Plus invests in a broader range of asset classes, including equities, which may offer higher potential returns over the long term. However, it is essential to note that with higher potential returns comes higher risk.
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