Advertisement
Anonymous
I'm totally new to investing and I so I'm looking for something more passive. Don't see myself trading stocks. Hence I was more interested in starting with Robo-advisors. What are the pros and cons when investing in Robo- advisors?
3
Discussion (3)
Learn how to style your text
Reply
Save
Hi Anonymous!
To answer your question, I think that most robo-advisors do the job of assessing your current financial position and recommend a portfolio strategy after reviewing your risk profile. As for the "catch", I would say that robo-advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as robo-advisors have lower management fees. You can check out kristal.AI (https://solutions.kristal.ai/seedlypost) as they have no management fees for investment amounts lower than $50 000.
Practically speaking, robo-advisors replace that human element that traditional financial consultants would provide with an AI system. Depending on your preference, that may or may not be a disadvantage/con for you. There are also a plethora of robo-advisors and some do not rely solely on AI/technological capabilities and retain the human element (see kristal.AI).
Hope that answers your query!
Reply
Save
Chuin Ting Weber
30 Apr 2019
CEO and CIO at MoneyOwl
Hi Anonymous,
Thank you for your questions. This is Chuin Ting, CEO/CIO of MoneyOwl. Perhaps as a p...
Read 1 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
Related Articles
Related Posts
Related Products
4.7
1293 Reviews
StashAway Simple Guaranteed 3.55% p.a. (Guaranteed rate)
Cash Management
INSTRUMENTS
None
ANNUAL MANAGEMENT FEE
None
MINIMUM INVESTMENT
3.5%
EXPECTED ANNUAL RETURN
Mobile App
PLATFORMS
4.7
659 Reviews
4.6
933 Reviews
Related Posts
Advertisement
Pros:
Use my referral code and save on robo-advisor management fees (Have you started investing with StashAway yet? Sign up with my link and we'll both get up to $10,000 SGD managed for free for 6 months! https://www.stashaway.sg/referrals/vinasp2m)
The management fees for stashaway is 0.8% (https://www.stashaway.sg/faq/115003861428-what-...), much lower than $10 per buy/sell transaction on trading platforms like FSMOne.
The portfolio is quite diversified so you get to invest in etfs of many countries (like US, China), as well as bonds, commodities and tech etfs etc.
You also get regular dividends from the stashaway etfs and the system automatically reinvests any dividends you may earn
Easy to deposit and withdraw, with no charge
Cons:
Just like with any investment, there is a risk of losing all
Returns from robo-advisor etf is more slow and steady (it is an etf afterall so it is more diversified), so it might not be as fantastic as picking a good stock and profiting high returns in a short span of time (provided you managed to safely pick a good stock ;p)