Is StashAway really safe, reliable, and legal?

Jun 5, 2020Blog0 comments

A lot of people ask: Is StashAway safe? Is it reliable? Is it even legal?


We totally understand…

Because we have seen a lot of people and even our closed friends got cheated by unethical investing platforms.

They are all dedicated to achieve their financial goals, increasing passive income, or buying their first house through investing.

But they got cheated by unethical investing platforms which caused them to loss their hard earned saving.

These unethical investing platforms are not regulated by the Securities Commission of Malaysia.

This is why this article is so important for you.

In this article, we will explain in detail “Is StashAway safe, reliable and legal”

First of all, StashAway has regulated by the Securities Commission of Malaysia.

StashAway is the first robo-advisor in Malaysia to be awarded the Capital Markets License by the Securities Commission under the Digital Investment License framework.  You may find out StashAway license here.

It has clearly shown that StashAway is regulated and legal.

Great now you get it, but you might be also asking:

What will happened to my money if StashAway get acquired, listed or shut down?

For StashAway users, this is a very important question and need to be answered.

Your investment funds will not be mixing with StashAway’s finances.

It means, your funds can only be used to invest for you, and cannot be used to pay StashAway’s related expenses such as salary, office rent, operating costs, utilities, etc.

Telling is not enough to build your trust (We know)

So, this is what we do…

To ensure that we (StashAway) cannot access your funds, we will keep your cash and securities through the escrow bank.

StashAway takes this very seriously because we want to ensure your funds and assets safety (as a StashAway’s user) and take responsibility for your trust and confidence.

Therefore,StashAway only cooperates with large institutions and world-renowned big banks to ensure your funds are best protected.

Citibank Berhad will take charge of your funds. And Saxo Capital Markets Pte Ltd will be responsible for keeping your investable cash and securities.

With these custodians, your assets will have nothing to do with StashAway’s operations and asset accounts.

What does it mean?

It means it doesn’t matter what happened to StashAway (either acquired, listed or shut down), it has nothing to do with you, you will still get back funds and assets belong to you.

Awesome right?

Great, now you have gotten sufficient information to prove that StashAway is legal, reliable and safe.

Here comes the most important question: What is StashAway investing performance?

The following is StashAway last 2 years investing performance portfolio for clients

(From July 2017 to July 2019):

*Take Note: StashAway Returns Compared To Same-Risk Benchmark

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How did StashAway perform so well?

StashAway is using ERAA (Economic Regime-based Asset Allocation) investment framework to invest.

What is ERAA?

ERAA is one of the investment strategies, it will establish and manage a diversified investment portfolio based on macroeconomic and market data, and help you obtain the best return while managing risk and reducing losses.

But, why would StashAway use ERAA framework? What are the differences between ERAA and other investment strategies?

lets focus on the “return performance”

The chart below conducted by Bloomberg showing the return between ERAA (Stash Away) over the past 15 years compared to similar risk benchmark portfolios:

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You may also discover what we did…

In a short period of time, StashAway’s portfolio performance has been up and down, but it was quickly recovered and showed very good returns in the long term.

Over the past 15 years, (yes, including the 2008 financial crisis), StashAway’s portfolio has performed better than other similar risk benchmark portfolios.

StashAway is a long-term investment method specially designed for busy people to invest and make money.

If you are looking to get rich quick scheme, StashAway is not for you.

However, if you want to have a stable return like Warren Buffett, then StashAway is your choice.

Let’s sign up StashAway, and start your investing journey now. The earlier you start, the faster you acheve your financial goals.

And also get a chance to win RM500 giveaway.