Whether we are a working young adult, a corporate professional, a stay-at-home parent, or semi-retired, having a source of passive income can be a great financial enabler.
Unlike having a side hustle, passive income is an income stream that doesn’t require active effort and management beyond the initial execution and implementation; it is not a second job. Instead, investing is one of the best ways to accumulate regular passive income.
This is where StashAway’s Income Investing powered by J.P. Morgan Asset Management comes in. As its name suggests J.P. Morgan Asset Management provides asset allocation guidance that the StashAway investment team considers in the portfolio.
Income Investing powered by J.P. Morgan Asset Management focuses on the income aspect of investing and is specifically designed for Singaporean investors to build a passive income stream with a projected income of 3.7% p.a.
Income Investing powered by J.P. Morgan Asset Management Is Designed For Singaporean Investors
Unlike growth-focused investing where you often need to divest your investments to realise the gains, income investing generates a regular income, typically through regular dividend payouts. Income Investing powered by J.P. Morgan is an investment portfolio that pays out dividends based on the distribution of its underlying exchange-traded funds (ETFs). This is projected to be a total payout of 3.7% a year.
Income Investing powered by J.P. Morgan has a historical payout of 4.2% p.a. generated by its distribution share class. Alternatively, there is also an option to automatically reinvest your dividends. This can be useful for investors who do not yet need to use their passive income, as reinvesting it can build up an even larger stream of passive income payouts in the future.
There’s no big decision to be made here as you can choose to change your mind to either option at any time.
Income Investing powered by J.P. Morgan Asset Management Earns Income Under Various Market Conditions
StashAway’s Income Investing powered by J.P. Morgan Asset Management carries a conservative level of risk through investment in fixed income securities that generate regular income via dividends.
This allows StashAway to maintain an investment portfolio that has a very low chance of 1% of losing more than 13% of your capital.
StashAway Income Portfolio Does All These While Maintaining Low Fees
For an experienced investor familiar with fixed income, creating an own income portfolio on your own may be possible. However, what the Income Investing powered by J.P. Morgan Asset Management portfolio offers is J.P. Morgan Asset Management’s extensive experience in fixed income markets, on top of low fees.
Source: StashAway
As you can see, there is an USD/SGD hedging, which means it is designed to minimise currency risk – reducing the impact of exchange rate fluctuations between the fund’s base currency (USD) and the Singapore Dollar (SGD).
For an ordinary investor, replicating the same optimisation and hedging strategies would incur a lot of transaction fees and this will have to be repeated across multiple fixed-income investments to ensure proper asset allocation. This is also on top of the hours put in to determine the ideal allocation, which is not ideal if we intend to earn passive income from our investments.
StashAway, working with J.P. Morgan Asset Management, does this automatically without the need for client intervention and charges a tiered annual management fee, ranging from 0.2% to 0.8% depending on the assets under management.
Invest In The Income Investing powered by J.P. Morgan Asset Management Portfolio
If earning passive income from your investment is important to you, you might want to look at StashAway Income Portfolio. For DollarsAndSense readers, StashAway is giving 50% off in management fees for 6 months, for up to $50,000 in portfolio value.
Sign-up for free today at this link!
The post StashAway Income Portfolio: How You Can Get 3.7% Dividends From your Investments Each Year appeared first on DollarsAndSense.sg.
