[sponsored]. Yes, I have invested a little in Stashaway and continuing to invest a little on a monthly basis. I believe in diversification. Beyond Stashaway, I also have my investments in Public Mutual as well as Kenanga Unit Trust. The one reason Stashaway is ahead would be the much lower management fees. As for returns, it’s way too new to say but it’s been approved by the Monetary of Singapore and has been in Malaysia since 2018. It is licensed by the Malaysian Securities Commission’s digital investment management framework.
My definition of starting to invest for the working professionals? Think small to start, think monthly as a great way to save. Go for long-term. Nothing much could be seen in the beginning but a few years down the road, even RM100 per month will be worth many thousands if not more, depending on the returns from the investment. Treat it as a great surprise and depending on how much we save, perhaps it could even be a down payment for an affordable home too. If we did not invest that RM100 or more every month, where would it go to? Well, maybe 7 glasses of ice-lattes?
#1 – StashAway was the first rob-advisory firm to attain full capital market services license from the Monetary Authority of Singapore. (Yes, that MAS… equivalent to our Bank Negara Malaysia)
#2 – StashAway has been operating in Malaysia since November 2018. It got its license from Malaysian Securities Commission’s digital investment management framework.
#3 – StashAway has a proprietary risk-focused investment framework called ERAA. ERAA basically factors in macro-economic data to make asset allocation decisions through various economic cycles.
#4 – StashAway’s management fees are significantly lower than those of traditional financial institutions. The charges are on a pro-rata basis, thus more of the investors’ funds can be invested. There are no entry fees and minimum balance requirements for customers to start investing with StashAway. Also, customers can purchase a minimum of 0.0001 units of any given asset and can own a highly diversified portfolio for as little as USD 10.
#5 – Founder of StashAway has these advice for everyone. Taken from his interview by KrAsia.
Albert Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it earns it. He who does not pays it.”
This has become my favorite quote when it comes to investing. The power of compounding begins with having a long-term investment plan, and it should help you in three ways: set targets on how much to save, set risks compatible with your goals and tolerance, and set a clear schedule for how often you will invest your savings.
To close, I would also flag that it is important to be aware of the behavioral pitfalls in investing: Don’t borrow money to invest. Ignore the media. Control your FOMO (fear of missing out). Avoid the FOF (fight or flight).
Perhaps this is the time to take that first step? Read, understand and decide. Stop waiting for the best time. It’s time we understand that starting when we are ready is the best time, before we spend it all away anyway. Perhaps it’s now the time to start our investment journey? RM100 a month perhaps? 10 years later, enjoy the discovery of what investment returns really is. Happy evaluating and investing. Here’s that link again. Happy building up future wealth through the power of compounding.
<Featured Image is courtesy of Stock Photos from iQoncept>
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