facebookIs it safe to use robo-advisors? Like Syfe, Kristal.AI as compared to OCBC Roboinvest? - Seedly


Edited 05 Oct 2021


Is it safe to use robo-advisors? Like Syfe, Kristal.AI as compared to OCBC Roboinvest?

Taking a lesson from Smartly ceasing operations in March 2020, many investors were forced to liquidate their investments. Since investing with robo-advisors tend to be for long term (10 years and more), is it safe/smart to use roboadvisors by startups like Syfe as compared to those by banks like OCBC roboinvest, even though the fees by bank roboadvisors may be more?

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Discussion (9)


01 Feb 2021

Hi Anon,

Thank you for considering kristal.AI! Here are some clarifications with regards to the abovementioned points :)

kristal.AI is here to stay. We have been around for 5 years, in fact, we celebrated our 5th-anniversary last week. We are also licensed in Singapore, Hong Kong and India and have growth plans in these markets.

Since 2019, we launched our Private Wealth business and added an entire range of products for High Net Worth clients. This included funds, private equity, tailor-made products, hedge funds, and even pre-IPO investment opportunities like Grab and Rubrik.

Our client base in this segment grew by 300%. As we continue to grow, our team has also expanded. Even with lockdowns in 2020, we grew from a team of 60+ to 80+ across different locations.

Rest assured that 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.

If Kristal AI ceases its operation, what would happen to your ETFs?

There will be a MAS approved liquidator in place. In case anything happens to kristal.AI, MAS will ensure that all assets are returned to the registered client.

Hope this helps to clarify! :)​​​

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25 Jan 2021

Hello there!

At Syfe, the security of our clients' money is of utmost importance to us, and we have stringent measures in place to prevent an event like a closure from happening.

Syfe is licensed by the Monetary Authority of Singapore (MAS), and we hold a Capital Markets Services (CMS) License for retail fund management. As a CMS license holder, we have met all the requirements and standards set by MAS to prevent a bankruptcy event from happening.

This includes meeting the minimum capital requirement, as well as audits and compliance to ensure that Syfe has sufficient daily cash flow to meet all operational needs.

Funds in your Syfe investment portfolios are held in a Trust Account in DBS Bank while your investments are kept in a Custodian Account through Saxo Capital Markets. These are held separately from Syfe’s assets. This means that Syfe will never be able to use your funds and assets, even in the very unlikely event that Syfe stops operating.

In that unlikely scenario, we will work together with Saxo Capital Markets under the supervision of MAS to ensure the orderly transfer of assets to another licensed fund manager, or the return of all assets and funds to our customers. Customers will be able to choose their preferred means.

All customers are also free to withdraw their money any time they wish. Syfe does not impose any exit penalties or lock-in periods, so clients are genuinely able to access their money any time.

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