StashAway managed to raise another USD $5.3 million in their Series A funding round recently - Singapore's StashAway raises US$5.3M Series A funding round, will launch in new markets. This brings their total funding to SGD $11.1 million which is definitely an excellent piece of news.
One of the main concern we all have is the possibility of the robo advisors going bankrupt/closing down which can be a showstopper preventing one from investing through them. Let's admit it, Singapore is a small market, hence the cost of investing through robo advisors are more expensive as compared to the United States or Europe. Expanding to other markets/countries will be beneficial in the long run. We all have a 50% chance of getting SGD $X in the Yth years so StashAway has to be profitable/operating till then.
We have decided to invest more money (from $500 to $1,000 monthly) through StashAway and I blogged about it here - Automating Capital Growth Through StashAway.
1. ACCOUNT SUMMARY (as of the last day of the month)
Based on the statement (31 Mar 2018), we lost -$62.58.
2. PORTFOLIO DETAILS
3. TRANSACTIONS
Did you notice something very different this month? StashAway has finally decided to provide the exchange rate that was used to convert our SGD to USD!
SGD $990.00 converted to USD $756.24
Exchange Rate: 1.309072
4. FEE CALCULATIONS
No fee till August 2018 because I recommended more friends. The projected fee (assuming no referral) would be the monthly-average assets SGD $5,173.25 x 0.8% / 365 days * 31 days = $3.51
StashAway VS STI ETF
Since there is no way to compare the performances among the robo-advisors, I came out with a spreadsheet to track our StashAway portfolio performance (General Investing - Risk Level 28) against that of STI ETF which I will be updating on a monthly basis. For simplicity, I shall assume that one can either invest in Nikko STI ETF using POSB Invest-Saver or invest in Nikko STI ETF/SPDR STI ETF using SCB Priority Online Trading (no minimum commission). These would be the opportunity costs while we continue to invest in StashAway.
Apart from the absolute P&L, we should also look at the Reward-to-Risk Ratio where risk/volatility is taken into account. For more information, do read StashAway Clarifications - Reward-to-Risk Ratio. StashAway has the highest ratio of 1.25 which is significantly higher than the other 2 STI ETFs (< 0.4). Let me quote Freddy Lim (Co-Founder & Chief Investment Officer of StashAway), "for every dollar of risk taken, StashAway P28 is producing 1.25 times the return".
This month commentary: I have added another "model" to the comparison table - investing in Nikko STI ETF using SCB Priority Online Trading (no minimum commission). Not surprising at all, all the investments are in red/losing money! StashAway continues to be the biggest loser similar to last month - February 2018.
Which is the best? Only time will tell :)
This is the link to our spreadsheet - KPO & CZM StashAway Portfolio VS STI ETF which I have also added to Our Portfolio page.
StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link
Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right -->)
One of the main concern we all have is the possibility of the robo advisors going bankrupt/closing down which can be a showstopper preventing one from investing through them. Let's admit it, Singapore is a small market, hence the cost of investing through robo advisors are more expensive as compared to the United States or Europe. Expanding to other markets/countries will be beneficial in the long run. We all have a 50% chance of getting SGD $X in the Yth years so StashAway has to be profitable/operating till then.
We have decided to invest more money (from $500 to $1,000 monthly) through StashAway and I blogged about it here - Automating Capital Growth Through StashAway.
1. ACCOUNT SUMMARY (as of the last day of the month)
Based on the statement (31 Mar 2018), we lost -$62.58.
As of 4 Apr 2018, we lost -$67.65 mostly due to the currency impact -$91.39.
SGD time-weighted returns: -2.6%
USD time-weighted returns: 0.9%
USD time-weighted returns: 0.9%
2. PORTFOLIO DETAILS
3. TRANSACTIONS
Did you notice something very different this month? StashAway has finally decided to provide the exchange rate that was used to convert our SGD to USD!
SGD $990.00 converted to USD $756.24
Exchange Rate: 1.309072
No fee till August 2018 because I recommended more friends. The projected fee (assuming no referral) would be the monthly-average assets SGD $5,173.25 x 0.8% / 365 days * 31 days = $3.51
StashAway VS STI ETF
Since there is no way to compare the performances among the robo-advisors, I came out with a spreadsheet to track our StashAway portfolio performance (General Investing - Risk Level 28) against that of STI ETF which I will be updating on a monthly basis. For simplicity, I shall assume that one can either invest in Nikko STI ETF using POSB Invest-Saver or invest in Nikko STI ETF/SPDR STI ETF using SCB Priority Online Trading (no minimum commission). These would be the opportunity costs while we continue to invest in StashAway.
Apart from the absolute P&L, we should also look at the Reward-to-Risk Ratio where risk/volatility is taken into account. For more information, do read StashAway Clarifications - Reward-to-Risk Ratio. StashAway has the highest ratio of 1.25 which is significantly higher than the other 2 STI ETFs (< 0.4). Let me quote Freddy Lim (Co-Founder & Chief Investment Officer of StashAway), "for every dollar of risk taken, StashAway P28 is producing 1.25 times the return".
This month commentary: I have added another "model" to the comparison table - investing in Nikko STI ETF using SCB Priority Online Trading (no minimum commission). Not surprising at all, all the investments are in red/losing money! StashAway continues to be the biggest loser similar to last month - February 2018.
I believe there is a need to redo/regenerate the volatility used to compute the Reward-to-Risk Ratio. Do take it with a pinch of salt for now. I have been compiling some data in order to do so :)
Which is the best? Only time will tell :)
This is the link to our spreadsheet - KPO & CZM StashAway Portfolio VS STI ETF which I have also added to Our Portfolio page.
StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link
Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right -->)
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