facebookI want to start investing with Robo-Advisors but I am not sure where to start. What are the options available? Which portfolio should I put my money in? - Seedly

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Anonymous

26 Jul 2020

Robo-Advisors

I want to start investing with Robo-Advisors but I am not sure where to start. What are the options available? Which portfolio should I put my money in?

I’ve read up slightly about Robo-Advisors and I am confused by the multiple choices out there. Can anyone explain more?

Discussion (4)

What are your thoughts?

If you don't have large capital at the moment, I would suggest to dip your toe into anyone first.

However, I have been having good experience using StashAway and would recommend you to go for that as well. Besides the comparison article you saw online. I felt other things that are beneficial for me as follows:
1) they have been conducting classes online to teach about financial planning, their framework and etf investing etc.
2) there is a weekly market commentary which is useful for me to know about current market. They recently launched their Spotify channel.
3) be truthful to your investment plan(for retirement/general investment/housing), then, you can have multiple portfolios in StashAway for individual purpose.
4) there is SRS investment option.

These are a few positive experience I have with them. However, I m currently looking into Endowus which allow investment via CPF.

Lim Qin Da

Lim Qin Da

15 Jul 2020

Business Administration & Analytics at National University of Singapore

Hey Anon!

Here are the popular choices in the Seedly community! Before you decide to put your money in, it would be good for you to understand the methodology, as well as the pros and cons of every Robo-Advisor. Robo-Advisors are the easiest investment methods to provide beginners with low cost, diversified and passive investing. They are perfect for time-starved working adults who are looking to grow their money passively.

Information accurate as of 15 Jul 2020.

TL;DR: Besides just choosing the robo-advisor with the lowest fees, you should be looking out mainly for the following. It is also important to invest according to your risk appetite, and understand any hidden fees involved, particularly if you’re opting to invest in global ETFs.

AutoWealth (Reviews // SeedlySpotlight)

  1. Platforms
  • Web
  1. Fees
  • Management Fee: 0.5% of AUM p.a.

  • Platform Fee: USD 18

  1. Minimum to Start
  • SGD 3K
  1. Methodology
  • A rule-based investment approach and strategy which places a strong emphasis on diversification across major asset classes, geographical regions, and industries
  1. Portfolios
  • Preservation to Long-Term Growth portfolios based on risk appetite
  1. Pros
  • Transparent and detailed platform

  • Auto-rebalancing to ensure not one asset class is overloaded

  • AutoWealth assigns each user a personal advisor so you can get support via text, or meet the advisor face to face

  1. Cons
  • Minimum S$3,000 investment amount

DBS digiPortfolio (Reviews)

  1. Platforms
  • Web
  1. Fees
  • 0.75% of AUM p.a.
  1. Minimum to Start
  • SGD 1K
  1. Methodology
  • Invest according to different risk profiles
  1. Portfolios
  • Asia

  • Global

  1. Pros
  • Easy to use, with low entry amount of S$1,000

  • Able to choose curated investments based on the level of risk appetite

  1. Cons
  • DBS digiPortfolio's fees are slightly more expensive than other robo advisors

Endowus (Reviews // SeedlySpotlight)

  1. Platforms
  • Web
  1. Fees
  • CPF and SRS: 0.4% of AUM p.a.

  • Cash: 0.6% (up to SGD 200K) to 0.25% (more than SGD 5M) of AUM p.a.

  1. Minimum to Start
  • SGD 10K
  1. Methodology
  • Building of Global portfolio via Dimensional Fund Advisors (DFA) & PIMCO funds
  1. Portfolios
  • Very Aggressive to Very Conservative portfolios for CPF, SRS and cash investments
  1. Pros
  • Allow CPF, SRS and cash investments

  • Lowest fees among robo platforms that invest in unit trusts

  1. Cons
  • Minimum account balance of S$10,000

kristal.AI (Reviews // SeedlySpotlight)

  1. Platforms
  • Web

  • Mobile App

  1. Fees
  • 0% (up to USD 50K) to 0.3% (more than USD 50K) of AUM p.a.
  1. Minimum to Start
  • No minimum
  1. Methodology
  • Curated ETFs, goal-based financial planning and customized portfolios by AI-based advisory
  1. Portfolios
  • Customized portfolios based on risk appetite
  1. Pros
  • Low fees, no penalties for opening or closing an account

  • 24/7 customer support, initial investment of just $10

  1. Cons
  • No automatic portfolio rebalancing (which Autowealth and Stashaway has)

  • Risk profiling not as comprehensive as Autowealth or StashAway

  • Algorithm advisory doesn't explain the rationale for each selected combination

OCBC RoboInvest (Reviews)

  1. Platforms
  • Web

  • Mobile App

  1. Fees
  • 0.88% of AUM p.a.
  1. Minimum to Start
  • SGD 1.5K
  1. Methodology
  • Portfolios comprising stocks and ETFs, specially curated for you by OCBC’s leading wealth experts
  1. Portfolios
  • 30 thematic portfolios across 6 different markets to match every risk appetite
  1. Pros
  • Easy to use platform, liberty to choose when to sell

  • Straightforward and diversified

  1. Cons
  • No dedicated mobile app, long waiting time

  • No funds dedicated in high growth emerging markets

SquirrelSave (Reviews)

  1. Platforms
  • Web
  1. Fees
  • Management Fee: 0.5% of AUM p.a. (up to SGD 500K)

  • Performance Fee: 10% of any positive return

  1. Minimum to Start
  • No minimum
  1. Methodology
  • Fully AI platform that invests based on personalized risk profiling of individuals
  1. Portfolios
  • Wealth Building

  • Retirement

  • Kids

  1. Pros
  • Relatively low management fee

  • Beginner-friendly UI, uses machine learning

  • Personalised portfolios

  1. Cons
  • Charges a performance fee

StashAway (Reviews // SeedlySpotlight)

  1. Platforms
  • Web

  • Mobile App

  1. Fees
  • 0.8% (up to SGD 25K) to 0.2% (more than SGD 1M) of AUM p.a.
  1. Minimum to Start
  • No minimum
  1. Methodology
  • A proprietary investment strategy called the Economic Regime-based Asset Allocation (ERAA) which continually monitors economic and market cycles to rebalance accordingly
  1. Portfolios
  • StashAway Risk Index 6.5% to 36%
  1. Pros
  • Allow SRS and cash investments

  • Easy to use app with a seamless interface

  • One of the lowest fees for small investment amounts at 0.8% a year

  • App allows users to track investments seamlessly

  1. Cons
  • Certain months with stagnated returns

Syfe (Reviews // SeedlySpotlight)

  1. Platforms
  • Web

  • Mobile App

  1. Fees
  • 0.65% (no minimum) to 0.4% (SGD 100K) of AUM p.a.
  1. Minimum to Start
  • No minimum
  1. Methodology
  • Successful long-term investing is much more about managing risk than chasing returns

  • Syfe takes a dynamic, risk-based approach to your portfolio’s asset allocation to deliver better returns

  1. Portfolios
  • Global ARI

  • REIT+

  • Equity100

  1. Pros
  • Low management fees of 0.65% p.a

  • Interesting risk-based approach

  • Portfolios created by Syfe based on the downside risks you are willing to take, rather than returns

  • Excellent customer support

  1. Cons
  • Heavily focused on US investments
    Note: There are also some other Robo-Advisors which are not mentioned here. If you would like to compare and read real user reviews about them, click here to find out more!

References were made to a Seedly Article written in Mar 2020. Click here to read more!

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