Anonymous
Is it a good idea to use Robo-Investors alongside my own DCA? Also, what are your thoughts on my portfolio asset allocation?
Couple in the early 30s, both employed, no car, planning for the first kid, waiting for BTO key collection in 1 year's time
- What're your views on our portfolio asset allocation? intending to hold for at least 10 years
- Cash 5%
- Fixed Income 10% (CPF not considered, 100% in bonds like ASTREA)
- S-REITs 10% (Indiviudally picked)
- Equities 70%
--> 80% in ETFs, of which 70% in DM/ US Tech ETFs, 20% in EM/ China ETFs and 10% in STI ETF
--> 20% in individually picked stocks - Alternatives 5% (100% in Crypto)
- We've been DCA-ing in the above ratio since Mar 2020 and still have a sum of 200k remaining to DCA in over the next 12-18 months. The problem is we're not very disciplined - scared to DCA in when markets are down, missing our monthly goals by more than 50% at times. Therefore, is it a good idea to use Roboinvestors alongside my own DCA? if so, which one can best mirror my allocation?
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Clare
26 Jun 2021
Writer at Financial Avocado
Agree with everyone here that your portfolio asset allocation looks well-diversified with a more aggressive slant which is appropriate given your age and life situation.
I can relate to your fear of DCA-ing, conquering emotions is the hardest yet least spoken about obstacle when it comes to investing. Thus, I believe using a roboadvisor will help to develop that mindset over time and take out the emotions from investing. Today, most roboadvisor fees are quite low, my favourite is Syfe. It starts off at 0.65% but goes to 0.4% when you invest 100k (in a few months' time in your case). Honestly the fees will be nothing compared to the gains from investing consistently.
Based on your allocation, you can choose to invest a portion in the REIT+ (S-REITs) and Equity100 (US/Tech) portfolios, which are some of your biggest components.
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Hey there Anon,
Your portfolio looks fine.
Robo-advisors fees are relatively affordable (about 0.2...
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If your are scared to manually DCA when markets are down, then that totally defeat the purpose of even initiating DCA.
Just set a standing bank order to DCA for Robo-advisor. Invest and forget then
In addtion, just forsake the STI index, poor long-term performer