In this review, we’ll analyse Stashaway’s pros, cons, fees, security measures, and how it compares agains other robo-advisors.
Visit WebsiteStashaway is a Robo-Advisor founded in 2016, headquartered in Singapore and operating in several countries: Malaysia, MENA, Thailand, Hong Kong and Singapore.
It is great for beginner investors located in these regions, since it does not have a minimum investment required, fees are low, and it is very easy to get started.
StashAway uses a smart strategy called Modern Portfolio Theory. They use algorithms to create a special investment plan based on your risk tolerance. This way, your investments stay in line with what you're okay with.
And here's another perk: You can take your money out whenever you want without any extra charges. StashAway is a great entry-level robo-advisor if you are a first-time investor. Be aware that the Stashaway offering might change from country to country.
In this review, we’ll analyse Stashaway’s main global features. Make sure to double-check the website directly to see what’s on offer for your country.
StashAway is a robo-advisor designed to cater to beginners in investing, offering an accessible management fee structure and no minimum investment requirement. The platform operates on the principles of Modern Portfolio Theory, utilising advanced algorithms to create personalised investment portfolios based on individual risk tolerance.
StashAway diversifies investments by allocating funds into low-cost Exchange-Traded Funds (ETFs) across various asset classes, regions, and companies. This diversification helps spread out the risk. Importantly, StashAway provides the flexibility for users to withdraw their cash at any time without incurring penalties.
StashAway has a transparent fee structure. Before you invest, you can easily see the charges, so you won't get any unpleasant surprises.
Stashaway offers both web and mobile platforms. You can access your investments through your computer or your mobile phone.
The StashAway app looks slick and has a user-friendly interface. Its design helps you quickly understand information, especially for beginners. Even though it might not seem crucial, this feature helps investors, even experienced ones to support their decision-making.
Additionally, using the StashAway app gives you a better experience by providing lots of helpful information. You can easily check how your investments are doing and keep up with market trends—all in the simple StashAway app.
And, if you want to learn more, StashAway Academy offers free courses on personal finance and investing. They come in different levels and formats like articles, videos, webinars, and podcasts to make learning easy and accessible.
StashAway provides a diverse range of investment portfolios catering to investors with distinct goals and risk tolerances:
StashAway's General Investing Portfolios are made for investing money over different timeframes, depending on how much risk you're okay with. They let you invest in a mix of things from around the world. What's in your investment mix changes depending on how much risk you want to take. In these portfolios, you'll find ETFs of international and US stocks, government and company bonds, real estate, commodities, and some cash.
StashAway's website offers a performance tracker designed to match your risk tolerance level for this portfolio. This user-friendly feature offers valuable insights, such as historical returns, asset distribution, and a simulation of a $100,000 portfolio. We highly recommend exploring this tool for a comprehensive understanding.
StashAway also offers investors the opportunity to invest in one General Investing Portfolio provided by BlackRockⓇ.
StashAway affirms that this is their most diversified portfolio, designed for long-term growth with occasional market fluctuations. This carefully crafted investment option is backed by BlackRockⓇ, one of the world's largest asset managers, ensuring robust performance for investors.
Just like the StashAway General Investing Portfolio, their website offers a performance tracker designed to match your risk tolerance level for this portfolio.
ESG investing focuses on Environmental, Social, and Governance factors in stock and fund selection. StashAway's Responsible Investing portfolio aligns values with investments, supporting noble causes alongside profitability. This portfolio, mirroring the diversification and risk management of the General Investing portfolio, allows investors to uphold ethical and sustainable responsibilities.
StashAway employs The MSCI ESG rating and The Morningstar Sustainability Rating ESG scoring models to assess its portfolio.
The Income Portfolio aims to generate passive income in diverse market conditions, making it a preferred choice for investors seeking high yields with relatively low market risks. StashAway's Income Portfolio has a 12% risk index, indicating a 99% probability that the annual loss won't exceed 12%.
In the StashAway Income Portfolio, the predominant investments are carefully selected to align with income-generating goals and low-risk considerations. The portfolio focuses on a diversified mix of ETFs, including Singapore Government Bonds, Asia Corporate Bonds, Real Estate Investment Trusts (REITs), and more.
StashAway's Thematic Portfolios are strategically crafted to offer sector diversification and thematic exposure while minimising investment risks. Designed around impactful global themes such as Technology Enablers, the Future of Consumer Technology, Healthcare Innovation, and Environment and Clean Technology.
These portfolios comprise two key asset types:
StashAway website offers you a feature that simulates the percentage of each type of asset for your risk preference!
By investing in Thematic Portfolios, you gain access to emerging trends and themes while managing risks through a thoughtful balance of thematic and stable assets. This approach tailors your investment strategy to align with your risk tolerance and overall investment objectives.
StashAway Flexible Portfolios is a unique feature that empowers you to tailor your own investment portfolios by leveraging a diverse range of ETFsavailable on the StashAway platform.
Boasting a selection of over 60+ distinct asset classes, StashAway's ETF offerings cover a broad spectrum, including US stocks, bonds, real estate, developed and emerging market stocks, and more.
The flexibility extends beyond the assets themselves — there are no limitations on the number of portfolios you can create. This means you have the freedom to customize as many Flexible Portfolios as you desire.
StashAway simplifies the process with various beginner-friendly templates. Whether you're a newbie investor looking for passive income, tracking global markets, or starting with a straightforward, globally-focused strategy that's easy to understand and manage, StashAway is the go-to choice.
In essence, StashAway Flexible Portfolios enable you to craft one or multiple portfolios that are uniquely yours, providing a personalised approach to your investment journey.
StashAway offers three types of savings:
StashAway Savings is accessible in Singapore, Malaysia, and NENA. However, StashAway Simple Guaranteed and StashAway Simple Plus are exclusive to Singapore. StashAway Simple is the only option available across all three countries.
StashAway Simple is one of StashAway's money management options. It offers a predicted yearly rate between 3.6%%, depending on the base currency of the saving plan, and has small (or non, depending on the country) management fees. This account is a mix of a regular savings account and an investing account. The funds within this account are invested in assets characterized by zero volatility, enhancing its safety profile (though not guaranteed).
StashAway Simple Plus offers greater return potential compared to Simple but comes with a slightly higher level of risk since the funds are allocated in short-duration bond funds. Anticipate some short-term ups and downs with Simple Plus, and it's advisable to hold onto your funds for a minimum of 12 months to fully capitalize on the yield to maturity (4.9%).
* Net Fees cover both the management fees charged by StashAway and the fees imposed by the underlying fund managers.
The Simple Guaranteed savings account offers a secured annual rate of 3.5% in SGD, ensuring a predictable and stable return. Notably, there is no management fee involved, meaning the displayed rate is the actual rate you receive. The risk associated with this account is limited to the underlying bank, as both principal and interest amounts are guaranteed. Additionally, there is a lock-in period between 1 and 12 months, during which the account remains committed to its guaranteed rate and stability.
* Net Fees cover both the management fees charged by StashAway and the fees imposed by the underlying fund managers.
StashAway keeps things clear with a fee that's easy to understand—ranging from 0.2% to 0.8% of what you invest. This fee covers everything, like balancing your investments and transaction costs, so you won't find any extra or hidden charges.
However, it's important to consider the expense ratio imposed by the ETF manager. Nevertheless, this cost would apply even when purchasing the ETF directly from the fund manager.
If you invest more, the fee rate goes down, as you can see in the table. What's nice is that StashAway doesn't hit you with account setup or exit fees, withdrawal fees, or any charges for moving your money between portfolios.
On the StashAway website, you can use a cool feature to see how much fees you might have on your investments. Check it out on the StashAway website!
In a nutshell, StashAway's fee setup is a bit like a bonus for investors who put in more—it means a lower fee rate for them.
Syfe is a robo-advisor with a competitively priced platform, featuring no additional fees or minimum account balance requirements. Its distinctive REIT+ portfolio sets it apart, offering the opportunity to invest in both local and international Real Estate Investment Trusts (REITs). This stands out as a feature that is not provided by StashAway.
Both Syfe and StashAway have no minimum investment requirements, making them accessible to first-time investors.
Syfe is a better choice for those with limited funds, as it charges a lower management fee of 0.35%, compared to StashAway's 0.8% for the first S$25,000.
Syfe also offers a broader selection of assets, including REITs and equities, allowing for more diversity in investment portfolios.
Endowus, a Singapore-based robo advisor, stands out for its versatility in allowing users to invest their cash, CPF, or SRS funds. Notably, it refrains from charging users fees for various transactions, ensuring a straightforward and cost-effective investment experience.
For beginner investors looking to get started, Endowus sets an entry-level minimum investment of S$1,000. In contrast, StashAway is accessible to all with no minimum requirement, making it an ideal choice for newbie investors.
Endowus offers a more accessible fee structure with a lower management fee of 0.6% for funds up to $200,000, as opposed to StashAway's 0.8%. for the initial $25,000. This makes Endowus an attractive and low-cost option for entry-level investors. Additionally, Endowus provides a flat rate of 0.4% for investments using SRS or CPF funds.
StashAway operates in each country under the licenses of the respective regulators:
StashAway believes in being clear about money matters. They keep their own money separate from yours. Importantly, this money is kept in a different bank account, making sure it's not mixed up with what belongs to clients.
StashAway takes big steps to keep your money safe. Here's how they do it:
In a nutshell, StashAway is considered safe, utilising a smart investment strategy, adhering to the applicable regulations, and keeping operational funds separate from client funds, ensuring clarity and financial security.
However, be aware that this is a recent company, with a limited track record, which is a drawback since it hasn’t been in the market for time enough to show resilience to negative events.StashAway uses a smart strategy for investing, adjusting based on economic conditions. They call it the Economic Regime-based Asset Allocation (ERAA) framework and use their special StashAway Risk Index (SRI) to balance protection and performance. With over $1 billion in assets, StashAway invests in 145 countries.
StashAway offers a dedicated customer service team to help with any questions or concerns about your investments. You can contact the support team via email, phone, WhatsApp, or Facebook.
In addition to customer support, StashAway has a detailed FAQ section on its website, covering various topics related to investing and platform features. The FAQ section is regularly updated to keep clients informed about any platform changes, providing accurate and current information.
StashAway accepts clients from Singapore, Malaysia, Hong Kong, MENA, and Thailand. This geographic restriction is a crucial factor when you are choosing an investment platform.
To open an account in Stashaway, you'll need to download their app available for Android and iOS. While you can initiate the process on the web platform, it must be completed using the mobile app.
In summary, StashAway stands out as an accessible and user-friendly robo-advisor, making it an ideal choice for beginners. With no minimum investment requirement, low fees, and a straightforward fee structure, it offers flexibility and ease for first-time investors. The platform's use of advanced algorithms based on Modern Portfolio Theory ensures personalized investment plans aligned with individual risk tolerance. StashAway's diverse range of portfolios, from General Investing to Responsible Investing (ESG), provides options for various investment goals.
However, it's important to consider the platform's limitations, such as its current availability only in specific regions, including Singapore, Malaysia, Hong Kong, MENA, and Thailand. While StashAway offers a secure and reliable investment experience, potential investors should weigh the pros and cons, such as the higher management fees compared to some competitors.
Also, more cost-sensitive investors can just invest in the funds by themselves in trading platforms like eToro and save the annual fees charged by Stashaway.
We hope this review has been helpful in answering your questions about StashAway. If you have any further questions or feedback, please feel free to leave a comment or reach out to us directly.
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