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AI Investment|Building a StashAway port helmsman with ETF: It is difficult to develop stocks, should learn Buffett

2021-07-19T23:37:07.854Z


StashAway, an artificial intelligence (AI) investment management company from Singapore, entered Hong Kong in April this year and became the group's fourth major market in the world. StashAway mainly provides automation for retail investors and qualified investors


StashAway, an artificial intelligence (AI) investment management company from Singapore, entered Hong Kong in April this year and became the group's fourth major market in the world.

StashAway mainly provides automated and personalized portfolio management for retail investors and qualified investors, assists users in setting investment goals, and aims to achieve considerable returns through medium and long-term investments.


Stephanie, the managing director of StashAway in Hong Kong, had worked at investment banks Goldman Sachs and McKinsey. In an interview with "Hong Kong 01", she pointed out that StashAway focuses on educating investors for long-term investment and bluntly said that "do not stand up to the well-developed stock market" because of ten people. One of them is well-developed, but the other nine lose money and will not be made public.

She believes that the correct investment method should imitate the "stock god" Buffett's long-term stable investment. Even if the average annual return is only 10%, through the compound interest effect, a lot of money can be accumulated after a period of time to help investors achieve various life goals.


StashAway was launched in 2017 and has so far completed 6 rounds of financing, raising more than US$60 million (approximately 468 million yuan). Investors include Sequoia Capital India.

The company has successively launched services in Singapore, Malaysia, and the UAE. It entered Hong Kong in April this year. The global assets under management have reached a level of US$1 billion (approximately HK$7.8 billion).

Leung Yingying, managing director of StashAway Hong Kong, said frankly that compared with the same period in the Singapore and Malaysia markets, the Hong Kong region has grown rapidly, and the scale of fund management and the number of customers have exceeded the company's expectations by 80%.

The types of clients are similar to those in Singapore. About 50% are from the financial industry, 20% to 30% are from the technology industry, and the others are professionals such as education, lawyers, and doctors.

Leung Yingying, managing director of StashAway Hong Kong, said that the company entered Hong Kong in April this year and its growth was faster than that of Malaysia and Singapore.

(Photo by Zhai Ziqian)

The average age of customers is 30 to 45 years old, mainly professionals

However, the difference from the Star and Horse market is that the average age of Hong Kong customers is 30 to 45 years old, while the average age of Star Horse is 25 to 40 years old. Liang Yingying explained that it may be due to the age group that Hong Kong customers have to reach. Savings or additional funds for investment.

In addition, she also pointed out that Singma’s customers themselves have a better concept of savings, while young people in Hong Kong are more interested in stocks and may not be interested in long-term investment.

Most of StashAway's clients are mainly professionals, and many of them come from the financial industry.

Since the client is engaged in the financial industry or has a little experience in investment, why use StashAway's service?

Liang Yingying explained that to manage a stock fund, you must diversify your investment. There must be at least 20 to 30 stocks in the portfolio, long-term tracking, and timely "change of horses". Generally, investors do not have enough time, knowledge, and resources. Go delve into it.

The stock god Warren Buffett once indexed the P500 Index ETF as the most worthwhile investment.

(Getty)

ETF is a good thing

Speaking of investment strategy, Liang Yingying, who once worked in the investment research and trading department of Goldman Sachs, is not "speculative" at all. She believes that retail investors are generally unwilling to invest most of their net worth on a single stock, and StashAway's investment strategy is also It teaches people to buy a basket of ETFs.

When it comes to investing in ETFs, she immediately points out three major benefits. First, ETFs already have diversified investment; second, fees are lower than those of trading funds, and even lower than MPF; third, some indexes are automatically reorganized daily .

Yingying Leung said with a smile: "Warren Buffett always buys ETF!"

Since Liang Yingying mentioned the various benefits of investing in ETFs, StashAway is clearly the main investment in low-fee US stock ETFs.

The company also provides 12 risk-reward combinations based on artificial intelligence (AI) algorithms.

According to its exclusive research SRI "StashAway Risk Index", the risk index ranges from 6.5% to 36%. For example, if the risk index is 6.5%, the system will ensure that the probability of losing more than 6.5% within a year, not more than 1%, and so far The track record is up to standard.

In terms of returns, taking the highest risk StashAway Risk Index 36% as an example, the portfolio's return rate last year was 16.5%, and the return rate of the MSCI World Equity Index, which tracks 100% of stocks, was 12.9% during the same period.

Liang Yingying added that the company has been able to outperform the reference benchmark in about four and a half years after launching the service.

StashAway offers 12 risky investment portfolios, and most Hong Kong customers choose a risk level of about 20% to 22%.

(StashAway official website)

The long-term investment concept of MPF is "high risk and high return"

The 12 portfolios can be described as "spicy and not spicy." Leung Yingying revealed that Hong Kong people tend to choose investment portfolios with milder risks, about 20% to 22%.

"Ask most people how much they will fall, and most of them 20% are already stunned." However, she also pointed out that the risk level is linked to the age of the client, and the concept is similar to that of the MPF. If the client is planning 30 years later When you retire, you should choose the highest risk investment portfolio, because in the long run, it is "high risk and high return"; but if the investment period from the target is shorter, the level of risk that can be tolerated should also decrease over time.

From traditional investment banks such as Goldman Sachs to start-up AI companies, Liang Yingying believes that StashAway can serve more people than before in large institutions, investment banks, family offices, etc.

She bluntly said that many Hong Kong people don’t have a good way to make money. In recent years, many financial channels have taught people to trade stocks on YouTube. Developed, but the remaining nine people will lose money and it will not be made public.

Furthermore, she emphasized that investment is a matter of decades. Even the strongest investor in the world, Buffett, has an average annual return of only 10%, but it can last for decades, and the compound interest effect can accumulate a lot of money. .

StashAway is still in a stage of rapid growth. It has offices in 5 markets around the world, with 160 employees, and more than half of its resources are devoted to scientific and technological engineering.

Liang Yingying revealed that she expects the company to be listed in the next few years, but it is still too early to say. The current priority is to focus on a good investment platform, gain time to gain the trust of customers, and bring financial products that were not available in the past to Hong Kong.

Source: hk1

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