Roboadvisors performance update -Syfe and Stashaway – July 2022
First deposit date: Jan 2021 for Syfe, Mar 2021 for Stashaway.
Strategy: DCA $50 each every two weeks (Syfe), increased to $60 from Aug onwards
I have stopped DCA for Stashaway as I am looking to channel the cash towards my DIY investments instead of Stashaway. However, the current amount remains in Stashaway as I do not need that money urgently. This is my personal opinion, it does not mean that their ERAA strategy is no good!
Market update
The market is rather indecisive right now and the recent rally may not signal the end of the bear market. Here’s why: many indicators points to the same signs of recession.
- The high inflation rate does not seem to be going away anytime soon
- Ongoing Russian-Ukraine war with no end in sight
- Energy crisis not solved
- Rising interest rates and higher mortgages
In my opinion, I expect the market to stay sideways for the rest of this year, while crypto may have a rally thanks to the upcoming Ethereum merge in September. #notexpertadvise
You may refer to my previous updates for a performance comparison that includes DBS Digiportfolio.
For an in depth reviews on Robo-advisors, please click here.
Bite-size updates
- DBS multiplier has increased their rates! You might want to do a review.
- Stashaway and Syfe cash management portfolio rates has increased.
Syfe
Equity 100 (highest risk)
Highest ATH return: 10%
Max drawdown: -5%
Current returns: -3.7%%
Stashaway
36% portfolio (highest risk)
Highest Returns: 2%
Max drawdown: -21%
Current Returns: -19%
Should you sell?
The answer is probably NO…unless you hit one of these few reasons:
- You no longer believe in Robo’s investing strategy.
- You found a better pick for your funds, maybe you think Tesla is a better bet or VWRA is much more cost-effective.
- You need money urgently (this shouldn’t be the case if you have to keep emergency savings and only invest what you can lose)
Notice that none of the reasons state poor performance or low returns as a selling factor…why?
Because markets are inherently volatile, there are upturns to every downturn. According to a study, the average duration of a bear market is 1.4 years, while an average bull market can last for 9.1 years. Therefore, you shouldn’t be hasty and make a decision on a whim just based on the price alone. As the saying always goes, time in the market over timing the market!
Conclusion
I hope you gain a better understanding into these two Robos and the market! Do carry out your own research and due your own diligence. On a personal note, I may not be updating this blog as frequently as before for this few months thanks to my school and work, but I will get back to it!
If you have not signed up for any of the Robos, do use my referrals below and get your management fees waived for the first few months!
Stashaway – First $10,000 SGD fee’s waived for 6 months after you deposit. Sign up here!
Syfe- Get a fee waiver on first $30,000 investment using my referral code and link : SRPRDR9KS
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