Asked by Anonymous

Why is my Stashaway account in negative returns now. Do they not rebalance for us. Anyone withdrawn yet?

0
0
Share this
Answer this question
Add
Add
Select
Clear
Add
Write your answer

Answers (11)

Sort by:
Most Upvote
  • Most Recent
  • Most Upvote
  • Loh Tat Tian
    Loh Tat Tian
    Level 6. Master
    Answered on 22 Dec 2018

    A lot of people are in the red now.

    I agree with the Nicholas and Yang Teng. I'm comtemplating to increase my monthly contribution precisely because the market is falling (this is a method done called, dollar cost averaging).

    The method works because we anticipate all these indexes to rise again after a few years. But never, ever DCA into a stock, unless you are sure it will not bankrupt and will rise again as a superstock.

    Comments (2)
    9
    0
    Share this
    • Shaun Goh
      Does the outcome of increasing your monthly contribution depend on what risk profile your portfolio is set to? I suppose, increasing contributions to a portfolio with higher ratio of equities to bonds would benefit more when equity prices are falling?
      1d ago
    • Loh Tat Tian
      Yes definitely. In fact, on the stashaway app, you can clearly see which index are bought and sold based on your risk profile. Higher risk profile means more standard deviation risk and also more equities. So yes, I benefitted from the drop (when everyone is loso g money).
      10h ago
  • Nicholes Wong
    Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic
    Top Contributor

    Top Contributor (Mar)

    Level 6. Master
    Answered on 22 Dec 2018

    If you are going to withdraw your money every time your investments gets negative, you should not invest in stocks. Stocks are volatile. If you cannot handle the volatility of stocks which are very common, you will just keep buying at high price and selling at low price which is going to make you lose even more money. You will carry on to do the same thing which is buying with stashaway because market doing good and selling it because market doing bad.

    Comments (0)
    6
    0
    Share this
  • John Smiths
    John Smiths
    Level 2. Rookie
    Answered on 23 Dec 2018

    If you started investing with StashAway anytime in the past year, it's likely your account will be in negative returns now. The point of rebalancing is not to prevent negative returns. And it's a bad time to withdraw especially when your account is in negative returns.

    I reckon you should have a more detailed read of the StashAway website and the various explanations of what you are actually investing in. It sounds like you have little idea of what your robo-advisor account investing is supposed to do!

    Comments (0)
    4
    0
    Share this
  • Yong Kah Hwee
    Yong Kah Hwee
    Level 6. Master
    Answered on 23 Dec 2018

    Why do you want to withdraw? It is only paper loss now. If you withdraw, it becomes realised loss! Robo-advisors are not a sure way to get positive returns. The market has ups and downs. If you cannot sit tight and go through all the volatility while doing dollar cost averaging, you should consider putting your money elsewhere, such as FDs.

    Comments (0)
    3
    0
    Share this
  • Gabriel Tham
    Gabriel Tham, Kenichi Tag Team Member at Tag Team
    Top Contributor

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered on 23 Dec 2018

    The key to dollar cost averaging an index ETF portfolio is to ride the up and down without market timing. Just continue funding and do not panic.

    Rebalacing is not going to give you instant riches. Maybe your expectations of a robo was wrong as they are not a sure win money machine.

    Comments (0)
    3
    0
    Share this
  • Kishor Bhagwat
    Kishor Bhagwat
    Level 4. Prodigy
    Answered on 23 Dec 2018

    Here are a few simple rules: 1.if you dont know why you own something in the portfolio and in that percentage, your strategy is called Hope. 2.Hope has no thresholds, so anytime is a good time to buy and sell. 3.More seriously, rebalancing is different from market timing. Rebalancing is a way to book intermediate profits by selling assets that have gained and buying assets that have lost. The key thing to remember is that you still believe that the assets in your portfolio are ones you want to live with. 4.Your strategic asset allocation doesnt change in rebalancing, but you may have a tactical tilt due to your reading of macroeconomic factors. 5.Remember to calculate the correlations and annualised volatility of your portfolio. That way, you have a sense of what is unprecedented volatility and what is expected volatility. 6.i dont do roboadvisors myself (i like to have control) but you still need to know what you own, what factors are favorable and not favorable to your allocation and what volatility is the portfolio aiming for. 7. If you are so worried about annual returns, you should be investing with an annual horizon. Your hit rate is going to be the same as a coin toss.

    Comments (0)
    3
    0
    Share this
  • Lok Yang Teng
    Lok Yang Teng
    Level 6. Master
    Answered on 21 Dec 2018

    Markets globally is sinking due to many geopolitcal reasons. In short, most investments are not going to provide positive/significant returns. Since Stashaway functions like ETF, you should still invest montly regardless of market condition.

    Comments (0)
    3
    0
    Share this
  • Anonoz Chong
    Anonoz Chong
    Level 2. Rookie
    Updated on 25 Dec 2018

    Everytime you deposit, they rebalance your portfolio by buying more of the underperforming assets. I guess they will only sell the overperforming one if you haven’t deposit for long time and the performance disparity is too great to ignore.

    BTW if you either withdraw or dial down ur risk level now, you will realize the loss. If you have faith in stock market going back up in few years, you should deposit even more cash in.

    Comments (0)
    2
    0
    Share this
  • Lee Jiahui
    Lee Jiahui
    Level 4. Prodigy
    Answered on 23 Dec 2018

    You know why it's negative? There are more sellers than buyers.

    Buy when there is fear.

    Comments (0)
    2
    0
    Share this
  • Gabriel Lee
    Gabriel Lee
    Level 6. Master
    Answered on 26 Dec 2018

    As many have shared, most people are in the red now including mine. I quote from sonicericsg, "When you trade long term through dollar cost averaging, no need to worry about the red"

    Comments (0)
    0
    0
    Share this
  • Tan Siak Lim
    Tan Siak Lim, CFP. Director, Financial Advisory Group at Financial Alliance
    Level 3. Wonderkid
    Answered on 25 Dec 2018

    I'm worried for you, after reading your question. Rebalancing will not prevent any one from losing money in a market downturn. Every long term investor is losing money now, including Warren whom many people consider as god of investing. The only people making money now are probably those very good traders. Hey, but please don't simply switching to trading after reading this! You are likely to lose even more money trading.

    Comments (0)
    0
    0
    Share this