Im puzzled with the low returns by @dopp. Must be currency.

This post has been edited by lee82gx: Dec 11 2020, 08:12 PM

Usd returns are definitely looking better than rm

When u withdraw from fd, you also loose ur interest no?

Honestly I just dump it into simple and dca.

You are withdraw the full amount from simple to your portfolios?

This is exactly what I do. To be honest, I have barely a few k here or there in FI / FD at any one time. I don't sweat the interest lost from a month or two and just dump it into the Simple and let it deduct away. It is more to restrict my own poor discipline in spending money needlessly if it is cash in my savings account. Come to the end you are talking about a few ringgit...Consider the big picture of a life time of returns from your portfolio....

In other words not yet reach sizable sum.

Hi everyone,

I have some data and maybe it is useless maybe it is useful. I am trying to compare Stashaway to my own DIY portfolio, with respect to risk and returns.

For example if you look at Risk Index 36%, you are told there is a 1% chance of losing 36% of your investment in a year.

The projected returns can be simulated in the website.

By right based on the 2 statements you can derive the mean and also standard deviation based on a normal distribution. However I found that it is not matching.

So, I ran some Monte Carlo analysis and reverse engineer the Standard deviation, here are the results:



With a 1000 run Monte Carlo, I manage to get close to the projected returns in Stashaway.

The matching return and Standard deviation is :
14% and 17%

If you use this info to calculate a sharpe ratio with a risk free return rate of 2%, then the Sharpe Ratio is 0.71

You can now use this to compare against other funds.

To me, my take away is if they maintain this in real life (you have to calculate your own std dev based on your own returns based on your DCA and cash flow) then it is actually not too shabby if it is maintained over a long period.

I've yet to calculate the sharpe ratio of the actual historical performance, maybe I should. But I believe it is far exceed 1.0 for the past 2 years.

I'm always amazed by skills of others. thanks.

I checked the 36% RI, you numbers are better match than mine. Which sadly makes the risk sharpe ratio even lower.

This post has been edited by lee82gx: Dec 17 2020, 03:25 PM

This guy is making a mountain out of molehill. I invested my first myr into StashAway knowingly that the dividends will be gone down the drain due to withholdgin tax.
Fees also mentioned up front will be charged what.

He should have mentioned the stability or viability of StashAway which until today cannot ascertain.

What I don’t see is actually how less educated investors can easily invest their money profitably into the US or broader based international markets. After all one of the tag lines StashAway is promoting is lesser fees compared to actively managed funds, and to a certain extent the fees are indeed lower. Next thing this guy does not mention about Forex risk is that it really works both ways and sometimes we enjoy the benefit of lower RM to MYR too in our portfolio. I remember some times nett loss in USd and nett gain in MYR.

One more thing is that, does withdrawing really come up with a substantial loss in forex after we have been quoted for the portfolio value daily? I’m curious, as I have never sold or liquidated anything yet.

Anyhow I have bought us shares since 2006, back when usd to myr is less than 4, maybe 3.8 or less. What I find is that in the long run as long as the company and share you buy is good and increasing in value, currency losses is something you have to just suck it up.

This post has been edited by lee82gx: Dec 20 2020, 11:39 PM

At first I think like you, and now I'm challenging myself or training myself to pick funds better.

There is no trick, first step is always to diligently track your portfolio, do your homework and bring out the steel balls.

If it works out, hey, more moolah, if not then at least you have your robo doing well.

I also was drafting a series of rebuttals but here in Malaysia we will just call it waste of breath / air.

What is the point in educating a sheep / cattle falling off the cliff?

If this fella got a 15% return with 20% risk method with a lower fee consistently, by all means sell it and I may even invest....

completely agree.

Like it or not, AI = automation and it will cost human jobs. It is already doing so in so many applications. A smart person will take note and profit. Talk is cheap, he needs to show some better examples. Not cherry pick worst case vs best case.

While watching it, I immediately thought, forumers like you can easily do a better analysis. Imagine, this is actually my first time watching his channel and I'm unlikely to come back for more.

well i didnt even bother to dislike it. Perhaps savvy investors can tell the difference in a few minutes.

I try another constructive way of criticizing, which is to ask him for any better alternative. Maybe its pay per entry but I'm hoping to be either educated or entertained.

Definitely keeping me interested instead of the boring DCA and swatting flies. I don't remember such excitement other than the super mega ultra bank emptying fiasco.

Burnnnnnnn......

Anyway as expected he didn’t back to me. Save from directly investing overseas, there is no better way to do it in Malaysia ATM.

As of today no one has lost money through stashaway due to fraud or deceit or anything illegal.

Your investments are held in trust by a trustee. If stashaway goes bankrupt you need to go through this trustee (Pacific trustees) to reclaim your possessions. Perhaps you will be forced to liquidate at that point.

Is it wise to put ALL your money in any single investment? Stashaway thinks so but perhaps you need to think and decide for yourself.

I don't.

That is plain wrong.

Did you do a lump sum or dca? Either way 1 year is too short and if you had significant sums invest before covid, we are just in the beginning of a recovery. Ie breakeven is already a great thing.

Please, 5% roi in year one is nothing to be scoffed at for the worst pandemic worldwide to ever hit planet earth.

If you had maintained invest 4k over a year through a dca, rm200 returns over 4k of principal sounds ok. If I had to guess its definitely above 8% p.a. Again, nothing to be scoffed at.

I think you should learn what is annuity, cagr, and compound interest.

Considering covid this year is good and you still should focus on the coming 10 and above.

Some funds would still be in the red considering the annual fees you have to pay to enter. (Non stashaway)

The money should be invested at least 3 to 5 years. If you withdraw now, just assume it did nothing. Or lost a few percent. You should grateful that this is not public mutual....

Even if you trigger the sale today, the actual liquidation of all your assets will take time and it is based on a price in the future that no one can tell. Expect 1 week + before it finally comes back to you in myr in your bank account.

Kweb has drop quite a bit, and that is the reason most portfolios having it cannot fly higher even though sp500 is having record gains. Anyhow not to fret, this is all part of the plan. Its rare and unsustainable have all funds all up all the time.