facebookI'm a fresh grad, new to investing here. Does it make sense for me to invest in both STI ETF and Robo-Advisors to diversify? What should the split be in terms of how much to invest? - Seedly

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Anonymous

26 Aug 2020

Robo-Advisors

I'm a fresh grad, new to investing here. Does it make sense for me to invest in both STI ETF and Robo-Advisors to diversify? What should the split be in terms of how much to invest?

Hi! I'm looking to take out around $350-$400 of my salary to invest. Have read through a number of Seedly articles, but I'm still confused.

  1. Does it make sense for me to diversify by buying STI ETF + Robo-Advisors (Global ETF)? What's the benefit of diversifying, if I'm looking to hold this for the next 5-10 years when according to what I read, there's generally an upward trend in terms of returns? (As compared to only buying STI or only Global ETF)

  2. How should I decide the split?

Discussion (14)

What are your thoughts?

Benedict Lau

Benedict Lau

26 Aug 2020

Student Ambassador 20/21 at Seedly

Hello!

The purpose of diversifying is to eliminate as much as risk possible so that only market risk (risk that cannot be diversified away) remains.

With a budget of around $400, I would put it all in a robo advisor. Reason being is because i cannot ascertain how much risk i'm minimsing by getting both portfolios. On the other hand, if I use a robo adviser (Stashaway for example, which I use) I can be certain of the risk that I'm taking up through their portfolio's risk index. Do let me know if you need a referral code. Hope this helps!

Tan Yu Ji

Tan Yu Ji

13 Aug 2020

Economics at Nanyang Technological University

I would recommend not investing in the STI as the growth is too stagnant! If you only have $350-$400 every month to invest, just put it into a robo advisor and they will help you to diversify your portfolio!

Samuel Wong

Samuel Wong

12 Aug 2020

Banking & Finance at Singapore Polytechnic

Warren Buffett recommends retail investors to just invest 90% in S&P 500 and 10% in Short-Term US Govt Bonds. If your investment horizon is long (20+ years) don’t waste time (and money) investing in the STI

View 1 replies

Yeap yap, it is a good idea to diversify as the sti etf only focus on the top 30 companies in Singapore while robo- advisors will allow you to invest in stocks from all over the world via the different etfs.

Enter you example choices into Bigcharts charting online and look what came of STI versus SP500 (div...

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