What's the point of using robo advisors that buy etfs and charge me significant fees when I can just buy it myself and rebalance every half a year myself?

If you’re comfortable and confident building your own well-diversified, low-cost investment portfolio, you’re right that you can go the DIY investing route.

However, you may not be able to replicate the same globally diversified portfolios Robo-advisors can offer at a similarly affordable rate. For instance, buying 20+ different ETFs may cost you in terms of brokerage and currency exchange fees - most Robos charge a fraction of DIY currency solutions.

Also if you would like to do dollar-cost averaging (DCA), buying those ETFs regularly can also rack up high brokerage costs. Most Robo-advisors let you do DCA without incurring the additional fees.

A good Robo-advisor should also serve as your personal wealth manager, but one that helps you monitor your portfolio 24/7. You can sleep more easily at night knowing that your portfolio is always being managed to help you optimise your returns.

To help you invest more confidently, most Robo-advisors will tailor your portfolio based on several personal factors as well. At Syfe, we use a risk-managed investing strategy to help you earn better returns. Instead of rebalancing twice a year, we continuously monitor and adjust your portfolio to ensure your portfolio risk is kept in line with the desired level of investment risk you want to take.

Let’s suppose an investor has misjudged his risk appetite and took on more risk than what he’s comfortable with. During a market correction, he may panic and decide to sell his stocks – just as prices plunge. What’s originally a paper loss has now been locked in. The better Robo-advisors would be able to minimise the chances of that happening by constantly monitoring your portfolio to provide a smoother investment experience and help you invest with more confidence.

It's in the name.

Advice.

If you don't need advice, don't pay for it.

If you need advice, pay for it. Someone will tell you what to buy, buy it for you, and manage it for you for a fee.

If you don't need advice, DIY, and save on the advisory fee.