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Anonymous

18 Feb 2020

General Investing

Would Robo Advisors or REITS (for dividends) be a better option for a beginner?

If i can only set aside $300 a month, which is a good option for me?

Discussion (2)

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These are possibly different categories to ask since the robo cound also include REITs or REIT ETFs

a) Robo advisor with regular savings plan adjusted to your risk tolerance: hassle free, but higher fees than DIY, dependency on good algorithm, efficiency during crashes and during good times possibly not esrablished

b) DIY buying of REITs: we tend to quickly look for online screeners to find REITs with the best dividend yields and/or capital appreciation (REIT price increase), however you could consider buying REIT ETFs, particularly S-REIT ETFs, given that they have in global comparison relatively high yields. Since you cannot predict the development of a single REIT with ETFs you diversify and hence reduce risk.

more on my thinking:

https://seedly.sg/questions/what-is-your-genera...

Gabriel Tham

11 Apr 2019

Tag Team Member at Kenichi Tag Team

If you intend to purchase monthly then Roboadvisor would seem to be the better option because it will lower your overall fees and expenses.

Else, you can consider to collect 300/month and then buy stocks with the saved up amount.

300/month to buy individual stocks each month will end up with you giving away too much in fees.

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