StashAway Simple™ – Should You Invest In It?
StashAway Simple™
What is it and why is it called Simple™?
As simple as it is, with no asterisks or whatsoever, there are still plenty of questions.
Maybe, an honest breakdown will set it straight. Since this has just launched as of the time of writing it would be more of a breakdown and explanation.
What Is StashAway Simple™?
Simple. It’s just a simple money market fund, where any invested money goes to relatively safe and steady investments like high credit rating bonds and notes
Bonds and notes are borrowing mechanisms that companies sometimes use to raise debt from the public.
Funds in StashAway Simple™ are invested into unit trusts by Eastspring Investments. After checking with StashAway they affirm as of currently all of it is Fixed Deposits derived.
Is StashAway Simple™ A Part Of The Robo-Investment Portfolio?
Nope. As the investment portfolio charges users a management fee on top of the Assets Under Management (AUM), whatever amount that you store in StashAway Simple™ will not incur any StashAway Management fee. The projected rate of 2.4% per annum is what you get. No other mathematical calculations needed to work out your net returns.
Why StashAway Simple™?
Because it comes with an annual return of a fixed deposit and the liquidity of a savings account. This means no worry about illiquid deposits when you place a Fixed Deposit and enjoy the relatively high-interest rate.
So if you want an interest rate of an FD and yet the liquidity of a Savings Account, the answer will no longer be impossible. It’s Simple!
Risk of StashAway Simple™?
StashAway Simple™ is still an investment. And the word risk always come together with investment. However, the risk index is extremely low. The StashAway Risk Index for StashAway Simple™ is 1.8%. That means you have a 99% chance of not losing more than 1.8% of your AUM in a given year.
How Does Central Bank’s Interest Rate Impact StashAway Simple™?
Whenever putting money into an interest-bearing investment, it will always be impacted by the interest rate policy.
And the same applies to StashAway Simple™.
The rates will follow the economic condition of the country which will then impacts the Central Bank’s interest rates policy.
MyKayaPlus Verdict
If you want liquidity and Fixed Deposit like interest rates on your savings, StashAway Simple™ is a game-changing option.
The FD like returns and the liquidity is a no brainer combination.
And it really is a simple straight forward, no complication kind of investment or savings vehicle.
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