Is it safe to invest in Robo-Advisors?

Hi there,

kristal.AI and its related entities are well capitalised and regulated. However, in the unlikely scenario that the company has to shut down, rest assured your investments shall remain safe. All client monies/assets managed by kristal.AI are held in separate accounts in the respective client's name and are not mixed up with the companies' assets.

KRISTAL ADVISORS (SG) PTE LTD is regulated and licensed by the Monetary Authority of Singapore (MAS) to provide Advisory and Investment Management Sevices under the Capital Markets Services Licence (CMSL).

Maybe you'd like to check out Kristal's review here https://seedly.sg/reviews/robo-advisors/kristal-ai

Cynthia

I can't speak for other platforms, but for Endowus and Moneyowl the assets are held in your name, and custodised in your name.

For other platforms the assets are pooled together, where they invest everyone's money together so that you are able to "own" a fraction of an etf, it becomes trickier. The assets are segregated from the robos operating cash, but when the entity goes bust, the assets might be liquidated at a bad timing.

Most robo advisor keep the clients money in a seperate acocunt so in the case where the robo advisor fails, the money will still be return back to you.

I will link you to a few other answers as this question has been asked a couple of times:

https://seedly.sg/questions/how-safe-is-it-to-s...

https://seedly.sg/questions/what-happens-if-a-r...

Generally, these companies are licensed and regulated by Monetary Authority of Singapore (MAS). Moreover, the funds are held in either a trust or custodian account that is separated from their operation capital.

However, the risk remains as we won't know how long it takes to process the returns as well. Hence, please do your own due diligence.

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