I think there are three main points to consider.
01 Sep 2020
Blogger at FI Pharmacist
Robos are great for people with a low starting capital. Syfe and StashAway does not have any minimum sum to start investing with them, and their management fees are pretty manageable at the start.
The portfolio that a robo-advisor recommends you is pretty diversified , as they focus more on asset allocation rather than selecting a specific stock or bond. Once they decide how much of your entire sum they should be allocating to stocks or bonds, most would usually invest in a fund that is diversified across the entire asset class.
As such, they have a 'lower risk' compared to investing in individual stocks and bonds. However, low risk doesn't mean no risk! It is still possible for you to lose money with a robo-advisor.
As you are investing with a robo-advisor, I would suggest to understand their investing strategy. You may or may not agree with their strategy, and once you've become more confident with investing, you can consider doing DIY investing.
Robos are great as a start. However, once you have a larger amount to invest each month, it may be more cost effective to invest via a broker instead.
For more information about robo-advisors, you can read my article which answers 13 questions you may have about them.
01 Sep 2020
Content & Community Lead at Syfe
Hello! For a young investor like yourself, a robo advisor like Syfe could be a good starting point. Our low fees start from 0.4% per year, and we have no brokerage fees or withdrawal fees. We don't have any minimum investment amount as well.
So if you're looking to invest a small sum regularly each month, Syfe would fit your needs.
Which Syfe portfolio to choose will depend on your risk appetite, investment goals, and time horizon. If you prefer managing your risk, you can consider Global ARI. It has 11 different risk levels to cater to all investors and so you can pick one that suits you best. For more suggestions, please speak with our wealth advisors for a free consultation. Hope this helps!
Your risk factor should be decided by
(1) investment horizon
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