Is StashAway Simple™ risky?
This is an investment, so there is a level of risk, but it’s incredibly low. The StashAway Risk Index for StashAway Simple™ is 1.8%. That means you have a 99% chance of not losing more than 1.8% of your AUM in a given year
StashAway Simple is as risky as investing in a fixed deposit issued by licensed financial institutions. The underlying fund in StashAway Simple, Eastspring Investments Islamic Income Fund, invests in Islamic money market instruments (fixed deposits) issued by financial institutions or their parent companies with a minimum credit rating of A3 or P1 by RAM Rating Services Berhad. Hence, the risk is the credit worthiness of the institutions such as AmBank Islamic Berhad, Public Islamic Bank Berhad and Maybank Islamic Berhad which were the top 3 holdings as of March 2020.