What is the difference between investing in dimension funds (MoneyOwl) and robo Advisors like stashaway or Autowealth?

(In terms of risk, returns, dividends, investment strategy etc)
And should I invest in both DFA and roboadvisors for more diversification? (What would be the recommended allocation for each?)

StashAway MoneyOwl AutoWealth

SeedlyTV S1E04

6

Discussion (6)

What are your thoughts?

Learn how to style your text

Victor Lye

30 Aug 2019

Founder & CEO at SquirrelSave

To add to the chorus of answers here, I would say that robo advisers bring a breath of fresh air to the investing landscape and the same goes for the traditional managers who try to innovate. However, the key is you - the investor. What is your objective? I would say, it is not to gamble, right? If so, then you must be (i) disciplined in deciding your risks you are willing and able to take, and (ii) committed to a time horizon.

I created SquirrelSave as a fully end-to-end AI offering as my experience as an investment manager taught me that humans are good at chasing returns (behaviour more like calculated bets) rather than managing risk, Managing risks require real-time and massive data tracking 24/7 - which humans cannot do. Go read more if you like at
https://www.squirrelsave.com.sg/blog/why-replac...

So, I replaced myself as the investment manager and developed machine learning techniques to assess the markets and diversify globally in real-time. We are not a trading engine, and we are suitable for investors who want to be disciplined and committed. Our AI does not chase returns but on managing risks first. We believe that a time horizon of at least one year is needed. Else, you should be a trader like how people bet on horses. Read more at https://www.squirrelsave.com.sg/blog/smart-inve...

Do check out the choices available and all the best!

Reply

Save

Sin Ting So

07 Jun 2019

Head Of Client Experience at Endowus

Hello! Dimensional takes a systematic appraoch to investing, where they structure broadly diversified portfolios that emphasize the dimensions of higher expected returns in both equities and fixed income products. These 'dimensions' have been proven to be persistent over time, pervasive across markets and cost-effective to capture.

For example in equities, they will tilt their portfolios towards smaller cap, value and profitability as Lok Yang mentioned below.

The recommended allocation would depend more on your investment goals, investment horizon and risk tolerance.

Reply

Save