Optimise Your SRS With StashAway General Investing Portfolios 

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Recently contributed to your Supplementary Retirement Scheme (SRS)? Putting aside funds in your SRS to save tax is just half the story. Here is the other half of the equation to optimise your SRS savings instead of letting it waste away at 0.05% p.a. interest: StashAway’s General Investing Portfolios are a great option to make it easy and simple to invest your SRS savings for the long term. 

What is StashAway General Investing Portfolios?

StashAway offers a range of investment portfolios for its customers. Among these portfolios are the aptly named “General Investing Portfolios” (GI Portfolios) and as their name suggests, these portfolios are for a wide range of goals and purposes. 

Investing for retirement or your child’s education? These are common goals that the General Investing Portfolios are for. Here’s why I would recommend StashAway’s portfolios for those investing for the long term, particularly for their SRS funds.

Simple

It is very easy to set things up with StashAway. All you have to do is to sign up using this link and use the app to start your investing journey.

Between the two GI portfolios, I’d personally pick the Blackrock® version (more on this later). With the Blackrock® GI portfolio, you can choose from 4 different risk levels. Generally, the longer your time horizon, the more exposure to equities you can have. Equities can be very volatile in the short-term, but over a long time period, equities trend upwards to give you good returns for your goals. 

With StashAway, you can just deposit an initial investment of any amount, set up a recurring investment (not compulsory but highly recommended), and let your investment grow and compound over the years. Because the portfolio auto-rebalances, you can set, forget, and live your life.

No lock-in

Unlike unnecessarily complex products that I dislike for having termination penalties and lots of upfront fees that cause capital loss upon early termination, there is absolutely no lock-in to StashAway’s portfolios. This means that you can liquidate anytime at the prevailing market price. 

Cashflow is a little tight in a month? Got a bonus you want to invest? You can increase, decrease, or completely stop your recurring investment anytime you wish.

This kind of flexibility is a double-edged sword since it allows you to pause or stop investing at any time. But because life can throw unexpected curveballs our way, it is still an important freedom to have. 

Reasonable and transparent fees

While there are investment products that bury fees in pages of legalese, StashAway is transparent with their fees. Underlying funds in the GI Portfolio by Blackrock® have an average expense ratio of 0.2% p.a. while StashAway itself charges anywhere between 0.2% to 0.8% p.a. depending on your total investment with them. 

In a world where some funds charge upwards of 1.5% to 2% p.a. and insurance agents get away with 50-60% commission of an investment-linked policy’s first-year premiums (!!), keeping one’s investment cost to around 1% p.a. or less would be a prudent thing to do.

One of the few SRS options

Again, StashAway is one of the few options you can chose to invest your SRS funds in a globally diversified manner. In fact, there are surprisingly few choices to pick from if you want to get global exposure for your funds. 

The GI Portfolios from StashAway allow you to put you to invest your SRS funds across multiple regions and sectors to ensure you get adequate diversification for your hard-earned savings.  

Rewards for signing up

Lastly, you also get rewards when you use my link to sign up. No overly complex bonus units (that come out from your pocket anyway), but you do get 6 months of fee waiver on up to S$20,000 of your invested amount! (Note that this fee waiver is not applicable for cash management products such as StashAway Simple Plus and Simple Guaranteed.)

StashAway

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Register and open account with this link6 months fee waiver on up to S$20,000 of invested amount*
*Fee waiver is not applicable for cash management products such as StashAway Simple Plus and Simple Guaranteed

Which GI Portfolio should you choose?

While both are called “General Investing”, StashAway offers a choice between a GI Portfolio powered by StashAway and another GI Portfolio powered by Blackrock®. Personally, I choose the Blackrock® version as I prefer the way it manages risk by letting you select the split between the more conservative bond component and more volatile equities. Periodically, the portfolio is rebalanced to maintain the asset allocation. 

On the other hand, GI Portfolio powered by StashAway uses StashAway’s proprietary investment strategy to manage the portfolios based on macroeconomic data and adjusts the asset allocation for portfolios to keep your risk constant through different economic conditions. It sounds interesting if it works, and I’m definitely going to find out more (so stay subscribed if you want more updates on this), but until then I’m more comfortable with their Blackrock® option.

Conclusion – who should pick StashAway GI Portfolio?

If you are someone who:

  • has a long investment time horizon
  • wants something simple and easy to invest with and prefers a hands-off approach
  • is willing to invest regularly to build up your assets
  • wishes to invest SRS savings 

You would likely find StashAway’s GI Portfolio very suitable for your investment goals. I’ve always believed and said that investing needs to be an automatic and regular thing. StashAway makes this extremely simple. All that’s left is to start stashing away your savings each month. 

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