Fam Wencong, Kenneth

My Diary

Investing In Robo Investing

Published: Wednesday, January 29, 2020

Robo investing is the talk of the town. With some knowledge on Economics and Finance, I take a look at stashaway.sg (Stash Away).

Yesterday, I signed up an account with Stash Away. Here are my takeaways.

As my horizon for investment is around 10 years, I created two goals with them. General Investing and Income. Stash Away’s algorithm then created portfolios for me based on my inputs. I can also adjust my risk tolerance and they will modify my portfolio appropriately.

For general investing with a risk index of 20%, my portfolio consisted of 45% US equities, 13% international equities, 27% government bonds, and 15% commodities. I also realized that their top allocation was in the US.

For income with a risk index of 12% my portfolio consisted of 44% corporate bonds, 35% real estate, 10% government bonds, and 10% international equities. I also realized that their top allocation was in Singapore.

For those that what a geographically located theme outside of the US and Singapore, this may be a setback for you.

However, with that said, what I realized is that the investment strategies and portfolios Stash Away offers are based on Modern Portfolio Theory and the Efficient Market Hypothesis. The robot plugs your answers into an algorithm that determines the kind of portfolio and asset allocation that’s appropriate for your age, risk tolerance and time horizon.

This is great for non-finance people; lowering their risk with a diversified portfolio.

I think Stash Away’s services are great. Low barrier to entry, a diversified portfolio and re-balancing; I can ask for nothing more.

If you read my last article here that I am investing again, I will be committing S$100 monthly with Stash Away.