“Cash is king.”
It’s a timeless saying, one that sounds like it makes sense – because we use cash pretty much everyday to live, trade, and survive.
But will the cash sitting in our wallets and regular saving accounts retain their value over the long term?
The truth is, it probably doesn’t.
Every day, the value of our money decreases due to inflation – goods and services get more expensive every single year. This means that every year, our money devalues because it can buy less of the same thing as it used to.
But of course you would rather have cash than not, so what exactly makes cash a pro?
In our opinion, it’s due to…
Cash flow & Liquidity
Instead of cash being king, we believe cash flow and liquidity is king. It is the reason why we keep excess cash in our banks and wallets.
We need cash and can’t have all our money stuck in assets because we need it for expected expenses like our daily expenditure as well as unexpected expenses such as emergencies.
Property is one such example of an asset. You can’t sell 1/10th of your home when you need the money, and unless you’re renting it out, it also doesn’t provide cash flow.
Other assets like stocks can provide liquidity and cash flow, but they’re volatile. For example, you may have bought a stock for $100, but short term price fluctuations can mean that your investment may be worth less – say $95 – in a week or month’s time. If you desperately need that $100, you won’t be able to rely on your stocks.
So how can I get all 3 – Cash flow, liquidity, and safety?
That’s where AutoInvest comes in
By partnering with leading assets managers, UOB Asset Management and Fullerton Fund Management, we are providing a simple, accessible, low risk investment solution directly integrated into the Grab App.
AutoInvest allows you to invest your GrabPay Wallet balance every time you make an eligible Grab transaction. You can make a withdrawal by transferring your money back to the GrabPay Wallet anytime without any withdrawal fees or penalty, no questions asked.
The portfolio invests into low-risk asset classes such as money market funds and short-term fixed income funds. Because of this, AutoInvest provides stable returns and low volatility.
By investing with AutoInvest, you can maintain liquidity, keep up with inflation, while keeping your risk relatively low. It provides returns of around 1.8% p.a (after fees) without any hidden costs. That said, the returns are not guaranteed or protected.
Through scale, we can access institutional markets that are off-limits for a single retail investor. That’s how we can capture returns and provide a better solution. After all, your idle cash should be appreciating – not devaluing – daily.
Interested to get your money working a little harder for you today? Check out how you can get started with AutoInvest via the Grab app.