facebookAfter reading the answers in the forum, I am not sure to go for robo-advisor or self pick the funds? What are some changes you would want to make, back when you just started investing? - Seedly

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Anonymous

20 Oct 2020

CPF

After reading the answers in the forum, I am not sure to go for robo-advisor or self pick the funds? What are some changes you would want to make, back when you just started investing?

And in terms of safety and management fees, should I stick to bank provider? Do SG investors go with only custodian account for overseas stocks or can CDP linked account be used for buying overseas stocks? My plan is to invest $500 a month. What recommendation would you give? My risk appetite would be high.

Discussion (15)

What are your thoughts?

Amelia Yamato Leow

Amelia Yamato Leow

19 Oct 2020

Level 7·Student Ambassador 20/21 at Seedly

If you're just starting out, I think stock picking may not be the best way to go and that just getting index funds or using a roboadvisor would be best. I started out with Stashaway, because my management fees were 0% since I used referrals. If your risk appetite is high but you're not experienced, I suggest choosing a high risk portfolio and looking at what components of the portfolio are giving high returns or low returns - then from there you can understand the market a bit better and begin to pick stocks on your own. If you're worried about fees, you can always find referral codes online because there are usually discounts

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Hi Anon, personally, i would recommend index funds to get the best of both worlds, specifically the S&P 500. Firstly, it is cheaper than a robo advisor. Secondly, you do not need to worry about picking stocks because the S&P 500 consists of the top 500 comapnis in the US. So if you were to buy one share of it, you would technically own all 500 of them. The average annual return of the S&P 500 over a period of 30-40 years is 8%.

Even Warren Buffett reccomends it to the average investor. He famously won a million dollar bet with a hedge fund that they won't be able to beat the returns of this index in 10 years.

As for safety and management fees, this article has a good summary of most brokers in SG: https://financialhorse.com/how-to-buy-us-stocks...

I only have experience with fsmone, they do not have any management fees at the moment and i have a great experience with them so far. All brokers that are regulated by MAS should protect your shares in the event that they cease operations.

There is only the option of custodian account for overseas stocks.

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For the beginner the less overwhelming method could be a roboadvisor. However with a lot of initial ...

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