facebookIn your opinion, would you recommend someone that already has invested in robo-advisors to invest in moneyowl/endowus? - Seedly

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Anonymous

26 Jun 2020

Robo-Advisors

In your opinion, would you recommend someone that already has invested in robo-advisors to invest in moneyowl/endowus?

Since all of them mostly track etfs/index, wouldn't their performance (less fees) be roughly the same?

The only difference being their weight in different markets and how they do relocation/redistribution.

SeedlyTV S1E04

Discussion (2)

What are your thoughts?

$owl offer other services like Will/estate planning....but Endowus dont do that (just focus on advices on investment purely)

Robo like stashawy not qualified to tap on Low-cost funds from the Dimensional Fund adv..they believe in having strong algorithms to pick stocks at right time, oro when to "reptimimise" or rebalance.......

Christopher Tan

Christopher Tan

07 May 2019

CEO at Providend Ltd

Hi Anonymous

Thank you for your question. Please allow me to clarify that for MoneyOwl, the underlying instruments that we use are not ETFs. While we believe that it is very difficult for one to beat the market and investing in index is a good way to get the market returns that you need, there are several operational issues with investing via ETFs. You can read more about our thoughts here https://advice.moneyowl.com.sg/why-unit-trusts-...

As such, MoneyOwl uses low cost funds from Dimensional Fund Advisors who are very much like index funds in that they are very diversified in terms of holding large number of equities in one fund. But their key difference is that they choose these securities based on the three dimensions that they believe give equities a higher expected returns in the long run. They are

1.Value beat growth companies

2.Small caps beat large caps

3.More profitable companies relative to other companies

The above are based on scores of evidence that span time and markets. They also do not believe in market timing. Most importantly, since 1981, Dimenisonal Funds have done well.

Please also allow me to share an answer that I gave from a previous post.

There are a few factors you need to consider before deciding who you want to go with. These are:

  1. Investment Philosophy

Some of the robos are active mangers, in that they believe they can beat the markets by tweaking the portfolios tactically in line with economic changes. Some of the robos do not believe in active management. As an example, MoneyOwl do not believe that it can beat the market. The investment philosophy is one whereby you should stay invested for the long term without trying to guess when is the best time to get in and out of markets.

  1. Underlying instruments

Some of the robos use ETFs as their underlying instruments whereas 2 of us (Endowus and MoneyOwl) use DFA as our underlying funds.

  1. Investment or Financial Advisory

Almost all the robos are investment robos. But for MoneyOwl, although we are a fund manager in terms of our MAS license, at the core, we provide financial advisory. The investment service that we provide is just part of our comprehensive financial advisory service to help you reach your life goals. You will notice that we already have insurance, will writing and in a few months time, we will launch our comprehensive financial planning service via robo and human advisers to integrate all the various areas (insurance, investments, CPF, etc) together. So I think you probably have to ask whether you are looking for pure investment advice or comprehensive financial advice.

  1. People behind the technology

The problem behind tech firms is that the technology is opaque. You do not know what goes behind the algos. So at the end of the day, you have to trust the people behind the company. As you know MoneyOwl is a JV between 2 longstanding local companies - NTUC Enterprise and Providend. Providend in particular is one of the earliest financial advisory firms in Singapore since 2001. It is well known for its deep knowledge in financial advisory and reputation for championing conflict-free and ethical practice.

  1. Sustainability and Secured Platform

In this world where start ups come and go, and also with the pervasiveness of cyber attacks, it is important that you invest with a company that is stable and secure. In this regard as mentioned, MoneyOwl is a JV with NTUC Enterprise and Providend, both have been around for decades. We are not a pure startup per se. Also, MoneyOwl is ISO27001 certified which means that we are serious in ensuring that our platform is safe and secure.

To find out more about MoneyOwl's way of investment, please visit https://advice.moneyowl.com.sg/investment/

MoneyOwl is also holding an investment symposium and you can sign up for it here

https://www.eventbrite.sg/e/moneyowl-investment...

Hope this helps!

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