Endowus Cash Smart

[s0crates]

So is the 1.9% guaranteed then. What does "may decide to rebate" mean?

Can I max out by SGD leverage on interactive brokers to do a bit of arbitrage with simple?

Idk leh but I feel uncomfortable with this kind of statements, but did anyone test it out anyway?

i think Stashaway simple has better risk/reward based on this statement, quote: "In the case that one (or both) of the fund's projected returns changes, we may decide to rebate you an additional amount in order to deliver the stated projected rate (in 3 decimals) at the time."

it's almost like stashaway is taking on the systematic risk for you. This is what endowus cannot do and you must stomach the tail risks.

 

[JustTrade]

Hello folks,

Just started endowus cash smart enhanced recently. And got abit confused and need some help/explanation.

1. I received some interest for the month of July. Endowus do not automatically reinvest this?

2. If I decide to invest say another 10k for cash smart. Do I have to start another saving goal? Because when I click invest in my existing goal, it points me to my existing my account which is the amount that I have previously vested (when selecting which account to invest from)

Thanks .

 

[reddevil0728]

Hello folks,

Just started endowus cash smart enhanced recently. And got abit confused and need some help/explanation.

1. I received some interest for the month of July. Endowus do not automatically reinvest this?
2. If I decide to invest say another 10k for cash smart. Do I have to start another saving goal? Because when I click invest in my existing goal, it points me to my existing my account (when selecting which account to invest from)

Thanks .

It’s not really interest, it’s just “increase” in the unit price that you are seeing

 

[JustTrade]

It’s not really interest, it’s just “increase” in the unit price that you are seeing

It appears under “uninvested cash balance”.

 

[s0crates]

That's not from cash smart. That's the interest you earn from your cash holdings before kayhian invests it.

It appears under “uninvested cash balance”.

 

[cfleee]

i think Stashaway simple has better risk/reward based on this statement, quote: "In the case that one (or both) of the fund's projected returns changes, we may decide to rebate you an additional amount in order to deliver the stated projected rate (in 3 decimals) at the time."

it's almost like stashaway is taking on the systematic risk for you. This is what endowus cannot do and you must stomach the tail risks.

What is pretty ambiguous is exactly when they will "decide to rebate an additional amount". Since rebates are credited on a quarterly basis, will we only find out then that the quarter's returns won't be round up to 1.9% anymore? Hopefully they won't pull this kind of stunt and will tell customers early, but I don't think they've really stated this anywhere.

 

[JustTrade]

That's not from cash smart. That's the interest you earn from your cash holdings before kayhian invests it.

Thanks. That explains. Do you have an answer for my question 2? Haha.

 

[cfleee]

2. If I decide to invest say another 10k for cash smart. Do I have to start another saving goal? Because when I click invest in my existing goal, it points me to my existing my account which is the amount that I have previously vested (when selecting which account to invest from)

You definitely can invest more money into the same Cash Smart goal.

I think it's a interface problem on their part that's making it confusing; after you select invest in existing goal, the next screen is "Select Account" which is to for you to select whether you want to invest "from" cash or SRS. It's actually not referring to investing "from" your existing goal, even though below each account type they display the existing "Investment Value" that is already present in the goal.

What you want to do is to just select whatever account as "the account you wish to invest from" and proceed. If it's SGD Cash, then that actually just means that they will pull the investment amount from your cash balance, once your deposit is in.

Might be good to contact support to confirm or at least feedback that this is confusing.

 

[Han Shot First]

Just started endowus cash smart enhanced recently. And got abit confused and need some help/explanation.

1. I received some interest for the month of July. Endowus do not automatically reinvest this?

2. If I decide to invest say another 10k for cash smart. Do I have to start another saving goal? Because when I click invest in my existing goal, it points me to my existing my account which is the amount that I have previously vested (when selecting which account to invest from)

1. It is the interest paid by UOB Kay Hian and reflected as part of your Uninvested Cash Balance. Endowus is not automatic; you need to use the platform to instruct Endowus how to invest your cash.

2. No, you do not have to start another saving goal. You can use the same goal if you want (and invest your additional 10k into that goal). However, Endowus allows you to "Add Goal" to create another Cash Smart Enhanced goal if that is your intention.

 

[Han Shot First]

What is pretty ambiguous is exactly when they will "decide to rebate an additional amount". Since rebates are credited on a quarterly basis, will we only find out then that the quarter's returns won't be round up to 1.9% anymore? Hopefully they won't pull this kind of stunt and will tell customers early, but I don't think they've really stated this anywhere.

I think the way StashAway behaves it seems that is unlikely that they will make up the rebate to 1.9% for StashAway Simple in the long term. If AUM under StashAway Simple grows and become substantial, StashAway would be making a loss on this financial product.

By stating terms ambiguously it allows StashAway to not pay the 1.9% and still be technically "truthful". And clients cannot complain to MAS.

 

[JustTrade]

You definitely can invest more money into the same Cash Smart goal.

I think it's a interface problem on their part that's making it confusing; after you select invest in existing goal, the next screen is "Select Account" which is to for you to select whether you want to invest "from" cash or SRS. It's actually not referring to investing "from" your existing goal, even though below each account type they display the existing "Investment Value" that is already present in the goal.

What you want to do is to just select whatever account as "the account you wish to invest from" and proceed. If it's SGD Cash, then that actually just means that they will pull the investment amount from your cash balance, once your deposit is in.

Might be good to contact support to confirm or at least feedback that this is confusing.

Thanks! Yes that is the confusing part. I Guess when I transfer the cash in, it should show SGD cash as an option. Will try out

 

[testingabc]

pretty new to this, may I know is the interest monthly and can it be withdrawn? is it much better than stashaway simple? considering this since all bank drop interest rates, thanks in advance

 

[reddevil0728]

pretty new to this, may I know is the interest monthly and can it be withdrawn? is it much better than stashaway simple? considering this since all bank drop interest rates, thanks in advance

withdrawal is in blocks of $100 and takes quite a few days. do you really need to withdraw?

 

[Han Shot First]

pretty new to this, may I know is the interest monthly and can it be withdrawn? is it much better than stashaway simple? considering this since all bank drop interest rates, thanks in advance

When you invest in Cash Smart, you buy 2 unit trusts in the ratio of 50%:%50%. There is no monthly interest. However, because the value of the underlying 2 unit trusts are increasing (slowly) daily your Cash Smart portfolio will increase in value (slowly). You are able to see your gains update during trading days on the Endowus platform. I say "slowly" but it increases comparatively faster than saving bank deposits (because of the higher projected returns of Cash Smart).

There is no lock in once cash investment "completes" (it takes a few business days because Endowus buys the unit trusts on your behalf). You can then withdraw to your linked bank account (if you need the cash).

Cash Smart Core is less risk than StashAway Simple but also has lower returns. Cash Smart Enhanced has more risk than StashAway Simple but also offers higher potential returns.

 

[testingabc]

When you invest in Cash Smart, you buy 2 unit trusts in the ratio of 50%:%50%. There is no monthly interest. However, because the value of the underlying 2 unit trusts are increasing (slowly) daily your Cash Smart portfolio will increase in value (slowly). You are able to see your gains update during trading days on the Endowus platform. I say "slowly" but it increases comparatively faster than saving bank deposits (because of the higher projected returns of Cash Smart).

There is no lock in once cash investment "completes" (it takes a few business days because Endowus buys the unit trusts on your behalf). You can then withdraw to your linked bank account (if you need the cash).

Cash Smart Core is less risk than StashAway Simple but also has lower returns. Cash Smart Enhanced has more risk than StashAway Simple but also offers higher potential returns.

thanks korkor for your detailed explanation

 

[jeffrey159]

EDIT: i've signed up under someone that pm'ed me first.

Thanks everyone.

 

[JustTrade]

Is there any referral code for endowus cash smart enhanced?

Hi Jeff, you can use mine if you want.

 

[reddevil0728]

Hi Jeff, you can use mine if you want.

You can pm but not post referral here if not you will be banned

 

[JustTrade]

You can pm but not post referral here if not you will be banned

Oops sorry didn’t know. Will remove.

 

[reddevil0728]

seems like the range now for enhanced is now 1.7 to 2.0