Should I keep my emergency funds in 8% risk Be Prepared for An Emergency portfolio or StashAway Simple?

Hi there, Just a caution on your emergency funds. 8% risk "Be prepared for an emergency portfolio" is still an investment portfolio with assets in it. The bonds that Stashaway invests in are bond ETFs. These are different from holding say your Singapore governemnt bonds. Amount is not guranteed. US Bonds can be traded as well and their prices may fluctuate.

These are some of the Bond ETFs the portfolio invests in. You can check them out in your portfolio yourself.

And of course Gold which was a good shorting opportunity past months for those of us that trade.

Those who have portfolios with significant bond and GLD allocation would have seen possible drops/poor returns past few months , hence questioning is it really good to put emergency funds into a portfolio that ultimately still invests in tradable assets? Do note these products have had their own crashes before. I personally wouldn't want my emergency funds to deplete 20-30% all of a sudden.

I'm not personally sure about Stashaway Simple which is a money market fund.

Hi Anon,

I actually used both. So I have 6 months' emergency fund set aside. I split them as such:

• 2 months' worth in StashAway Simple

• 4 months' worth in StashAway Emergency Portfolio

This is because I don't have any dependants or commitments, so if anything happens, I don't foresee needing immediate access into more than 1-2 months' emergency fund. So I have a minority amount in cash mgmt. like StashAway Simple, which is lower risk and more liquid (max 3 business days to reach bank account). Whereas the majority amount is working harder by taking on more risk in the StashAway Emergency Portfolio.

Just FYI, because StashAway Simple projected return is not the most competitive, so in Feb 2021 I moved the 2 months' worth to Syfe Cash+. But my 4 months' worth is still in StashAway Emergency Portfolio.

Hope this helps. Thanks!