Hi, I am a beginner in investing, looking to start with robos. After setting aside emergency fund, is it wise to DCA 20% of my salary into robos instead of putting it in banks?

If just 10k, don't split too much, you wont see the impact

Hi Anon,

Good job for deciding to start your investing journey! Here are my thoughts on your questions.

1. I'd say that this theory is probably 99.99% true. The important thing to take note of here is that this theory strictly refers to the market as a whole. Not any individual stock, sector, or industry. It is the entire market as a whole. This means that you can only apply this theory if you're invested in the whole market. The more representative your investment is of the whole market, the more accurate this theory becomes for you. So it's extremely important that your investments are in large indices like an All-world index or S&P 500 index. With that being said, you may still want to set aside some money as short-term or long-term savings instead of investing everything. There are probably things you need to save up for such as a future vacation, BTO, car payment, wedding, or even just for daily expenses. Ideally, you shouldn't be relying on your emergency fund or investments to pay for these expenses.

2. I think there are more important questions here such as what is it you want to achieve by splitting your eggs into different baskets and what your risk appetite is like. Is it asset class diversification? Platform diversification? The way I see it, you don't really need to use both platforms unless you're worried about either one going bust. Or, you just want to try out different platforms. But if it's simply to diversify your investments, you can just opt to invest in Syfe's Global ARI portfolio instead of Equity100. How you split your funds according to the various portfolios depends on your risk appetite. Personally, I'd go for more equity and fewer bonds. But you need to decide for yourself how much risk you're able to tolerate. If you don't know, I'd say choose a less risky allocation first. If you can handle it, then turn it up. Otherwise, maintain it or even reduce the risk accordingly.

Hope this helps and all the best!

Regards,

thefrugalstudent