Question 1

Why shouldn't I invest in these funds myself instead of having StashAway invest on my behalf?

Accepted Answer

First, with the enhanced liquidity fund, we are using an institutional share class that has lower total expense ratio (annual fee charged by the ELF's fund manager) than the retail share class available on FSM or anywhere else. So, we give you access to the ELF at a lower cost.
Second, we return all rebates from the enhanced liquidity fund and money market fund back to you. Most other platforms and fund managers don't do this.

Question 2

Do I need to invest with StashAway to have StashAway Simple™?

Accepted Answer

Nope! You can have just a StashAway Simple™ portfolio, if that's what works best for your financial plan.

Question 3

How is StashAway Simple™ different from a fixed deposit account or savings account?

Accepted Answer

Unlike fixed deposit accounts that require a minimum lock-up period, you can withdraw from StashAway Simple™ at any time. And unlike traditional savings accounts, StashAway Simple™ doesn't have any tiered earnings structures or account activity requirements. Also, StashAway Simple™'s rate can vary, depending on the economic environment. In addition, your Simple portfolio is made up of ultra-low risk assets, but is not insured.

Question 4

What are the risks involved with Simple Plus?

Accepted Answer

Simple Plus is an ultra-low risk portfolio suitable for a mid to long term holding period. The average monthly drawdown for Simple Plus is -0.14% as of July 2023.
When constructing Simple Plus, the portfolio is optimised for risk-reward ratio. That means the portfolio simultaneously provides you with the best rate possible and protects the downside of your cash. 
We construct the portfolio using a mix of reputable, high-quality short and ultra-short duration bond funds with proven track records. The average monthly drawdown for Simple Plus is -0.14% as of July 2023. 
The minimal, yet calculable, risk comes from:
Allocation to short duration bonds in the mix which makes the portfolio slightly more sensitive to interest rate movements and economic conditions.&nbsp;
Some underlying funds having a time to maturity and duration, and higher credit risk. The average maturity of the bonds is 1.5 years which means that their full yield is paid out in that time frame.&nbsp;
Because of these factors, we ​​recommend you hold your cash in Simple Plus for at least 12 months in order to reap the maximum benefits of higher rates while keeping risk in check.

Question 5

What's the difference between Simple, Simple Plus and Simple Guaranteed?

Accepted Answer

Both Simple and Simple Plus are cash management portfolios. Both have no minimum balance, no cap on the balance that can earn returns, no investment, insurance, or salary requirements, no restrictions on withdrawals or transfers. Simple Guaranteed too! Except there’s a lock-in period. However, there are some fundamental differences between the three portfolios. The rate: Simple provides a projected rate; an estimate of expected actual returns.
Simple Plus provides the yield to maturity, which is the total return anticipated on a bond if held until maturity, inclusive of the interest payments you’ll receive and any difference in the current price of the bond versus its maturity price (which is the same at the point it is issued). Simple Guaranteed’s rate is the most straightforward – it’s guaranteed.
Risk: Both Simple and Simple Plus are ultra-low risk. However, Simple Plus carries slightly more risk in comparison to Simple. This is because it exposes the investor to a slightly higher level risk in order to seek slightly higher returns. What does this “slightly higher risk” mean for an investor? Well, in the span of a year, there is the potential for brief periods of slightly negative returns in the short term, and the same can be said for brief periods of exceptional returns (exceptional for cash management options, of course). Read more on the comparison of the risk of the two portfolios here. Simple Guaranteed has no exposure to market volatility, but is subject to underlying bank risk. Recommended holding period: How long you want to keep your cash in Simple is entirely up to you, be it a day, a month or a year. However, with Simple Plus, there’s the potential for brief periods of slightly negative (and positive!) returns in the short term, therefore to reap the full benefit of the rate while keeping risk in check, we do recommend a holding period of at least 12 months. Read more about why here. Simple Guaruanteed in contrast will have a lock-in period (1, 3, 6, or 12 months). Management fees: StashAway charges a management fee of 0.15% for Simple, and 0.2% for Simple Plus. There’s no management fee for Simple Guaranteed. And all rates for the three portfolios are net of fees! Risk: Both Simple and Simple Plus are ultra-low risk. However, Simple Plus carries slightly more risk in comparison to Simple. This is because it exposes the investor to a slightly higher level risk in order to seek slightly higher returns. What does this “slightly higher risk” mean for an investor? Well, in the span of a year, there is the potential for brief periods of slightly negative returns in the short term, and the same can be said for brief periods of exceptional returns (exceptional for cash management options, of course). Read more on the comparison of the risk of the two portfolios here. Simple Guaranteed has no exposure to market volatility, but is subject to underlying bank risk. Recommended holding period: How long you want to keep your cash in Simple is entirely up to you, be it a day, a month or a year. However, with Simple Plus, there’s the potential for brief periods of slightly negative (and positive!) returns in the short term, therefore to reap the full benefit of the rate while keeping risk in check, we do recommend a holding period of at least 12 months. Read more about why here. Simple Guaruanteed in contrast will have a lock-in period (1, 3, 6, or 12 months). Management fees: StashAway charges a management fee of 0.15% for Simple, and 0.2% for Simple Plus. There’s no management fee for Simple Guaranteed. And all rates for the three portfolios are net of fees!

Question 6

Why is the recommended holding period for Simple Plus at least 12 months?

Accepted Answer

StashAway’s investment team simultaneously aims to provide you with the best rate possible and protect your portfolio’s downside. And in the case of Simple Plus, it means keeping your cash in the portfolio for at least 12 months.
We recommend this because the yields of some of the underlying funds of Simple Plus are sensitive to daily market movements, and so it’s possible that the yield could fluctuate at any time. To reap the full benefit of the rate and keep your risk in check, we therefore recommend to keep your cash for at least 12 months.

Question 7

Can the guaranteed rate change?

Accepted Answer

No. Once you lock in your guaranteed rate, it’ll remain fixed throughout the lock-in period. But until then, the portfolio’s rate can change daily.

Question 8

Can I top up or withdraw my money before the end of the lock-in period?

Accepted Answer

You won’t be able to top up or withdraw from a locked Simple Guaranteed portfolio for the/during the lock-in period (which is 1/3/6/12 months). Therefore, whatever amount you invest will remain fixed during the lock-in period. 
Alternatively, you can always create an additional Simple Guaranteed portfolio and have multiple portfolios earning returns at the same time. At the end of the lock-in period, you’ll be able to top up or reduce your investment amount and create another Simple Guaranteed portfolio.

Question 9

What’s the difference between Simple Guaranteed and a fixed deposit account?

Accepted Answer

There are a few key differences between a classic fixed deposit account at a bank and Simple Guaranteed.

	Simple Guaranteed	Simple	Simple Plus
Rate before fees	3.75% p.a.	3.9% p.a.	4.9%
Net fee charged by underlying fund managers, including quarterly rebates*	None	0.19% p.a.	0.19% p.a.
StashAway management fee	None	0.15% p.a.	0.2% p.a.
Rate after all the fees	A guaranteed rate of 3.75% p.a	Projected rate of 3.7% p.a.	Yield to maturity of 4.5% p.a.

Cash management solutions to grow your cash

Three ways to grow your cash

Simple Guaranteed

Simple Plus

Simple

How volatile these portfolios are?

Simple Guaranteed

Simple™

Simple Plus

Bonds

Equity ETFs

How to choose between all three?

Simple Guaranteed

Pricing

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Simple

Simple Plus

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