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STASHAWAY Simple VS ENDOWUS Cash Smart Vs GRAB AutoInvest And More…

If you have extra cash, consider saving into these platforms.

Do note that these platforms invest your cash for you into unit trust funds. They do not give you interest on your money. It is an investment service.

Hence, returns are NON-GUARANTEED. But there is NO lock in period also.

Summary of the funds invested and projected return

I've summarised for you below the minimum amounts to start, the funds they invest into and the projected returns that Stashaway simple, endows cash smart and grab autoinvest use.

You may realise that Fullerton Cash fund, LionGlobal Enhanced Liquity Fund and United SGD Fund is frequently used. Perhaps it is not wise to conclude based on projected returns because there is similarity in funds invested. And these projected numbers may not be updated.

In the next section, I'd compare the underlying funds that the platform invest in.


Stashaway simple and Grab auto invest can start from as little as $1.

Having said that, too small an investment will not help you in building your finances.

What is Fullerton Cash Fund (Risk 0/10 by IFAST)

As I read the Fullerton Cash Fund - Class A factsheet, I realised it does NOT invest into bonds directly.

The money is deposited with financial institutions which is unusual.

There are 5 financial institutions are counterparts from the factsheet.

And these deposits are mainly very short in duration.

What is LionGlobal Enhanced Liquidity Fund (ELF) (Risk 1/10 by IFAST)

LionGlobal Enhanced Liquity Fund is a relatively new fund which incepted in Nov2018.

Bond duration as of July2020 factsheet is 0.81years and investment average grade of A.

Majority is in corporate bonds and half in SG.

What is United SGD Fund (Risk 2/10 by IFAST)

United SGD fund has been around for many years.

It is short duration bond fund and not a money market fund simply from the average durations of the bonds they invest into.

Fund invest into credit rated corporate bonds mainly and diversified into many countries and sectors as shown below.

Some other alternatives: Moneyowl WiseSaver

MoneyOwl publishes the rate with a 5-day moving average.

I guess it makes the projections more current.

The underlying fund they use is solely into Fullerton Cash fund. Hence projected return may seem lower.

Some other alternatives: iFAST/FSMOne Autosweep

IFAST/FSMOne autosweep uses LionGlobal Enhanced Liquidity Fund and Fullerton SGD Cash fund.

Interestingly, they are the only ones with 15% in cash.

I have frequently recommended this facility for private clients with portfolios I manage to use the auto-sweep as they await investment opportunities.

Summary

For pure savings, I rate high yielding bank accounts like OCBC 360, UOB ONE and DBS Multiplier slightly better simply because it is interest income. There wouldn't be losses.

However, these cash solution platforms are good if is the intention is to keep the money away from being spend or to standby for investment into the financial markets.

For starters I may go with ENDOWUS Cash Smart Enhanced for the potential returns despite the slightly different risk profile.


Watch tutorial below "How you can get started with investing very little money!"

Josh Tan Jian Liang (CHFC) Principal Author

REVIEWS: https://theastuteparent.com/josh-tan Practising financial planner with Promiseland Independent Pte Ltd. EXPERIENCE: More than 13years. Josh Tan is a young parent, speaker, author and founder of TheAstuteParent.

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