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Dhruv Arora

Dhruv Arora

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Founder & Chief Executive Officer at Syfe

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Dhruv Arora

Top Contributor

Founder & Chief Executive Officer at Syfe

82Upvotes
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DBS Multiplier

DBS

Investments

ETF

As Cedric mentioned, with dollar cost averaging, you avoid the risks of lump-sum investing since you invest smaller, consistent amounts during both good and bad market conditions. Over the long term, your returns average out to mirror the overall market performance. A RSP is good if you want exposure to Singapore equities. But if you want a globally diversified ETF portfolio, you can consider digital wealth managers like Syfe. Syfe has no minimum investment amount and you get the freedom to decide how much to invest each month.

Investments

Unit Trust

Equities

Hi Melissa, I generally don’t recommend investing in unit trusts due to the high fees involved. Fees have one of the largest impacts on returns. What’s more, the higher fees you pay for unit trusts may not translate to better returns. If you look at the chart below, you’ll see that despite having higher total expense ratios (TERs), the 10-year annualised return for these unit trusts wasn’t better than their comparative ETFs. High TERs can substantially erode investment returns. If the TER was 1%, $100,000 invested at an annual return of 5% would be worth $324,000 after 30 years. If the TER was just 1% more (2% TER), your final investment value would drop to just $242,000 . When it comes to investing in equities, my preference is to invest in equity Exchange Traded Funds (ETFs) instead, for quick, easy diversification. ETFs allow you to invest in a large number of stocks through a single transaction. This built-in diversification protects your portfolio. If your portfolio is concentrated in just a few stocks, when one underperforms, it can drag down your whole portfolio. A fuss-free way to start making dollar cost averaged investments into ETFs is through a digital wealth manager, as Tat Tian mentioned. You can consider Syfe – our portfolios are a combination of up to 25 ETFs for equities, bonds and gold. !
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Stocks Discussion

Investments

Bank Account

Retirement

Savings

Hello there! Perhaps I could share more about Syfe's investment methodology to help you make a better choice. Our key strength lies in our proprietary Automated Risk-managed Investments (ARI) methodology. ARI combines two of the world’s leading investment approaches and is built by a team of academics, technologists and former bankers. ARI creates your portfolio by allocating assets which have shown the best return for your risk profile. But more importantly, it continually monitors your portfolio. During periods where higher market volatility has been forecasted, ARI will adjust your portfolio allocation and reduce your exposure to higher-risk asset classes. This ensures your portfolio risk stays aligned to your desired risk level. During periods of market calm, ARI will adjust your portfolio allocation to include higher-risk assets so your overall portfolio risk is kept in line with your desired risk exposure but you get to capture the market upside as well. The result is that ARI helps you achieve benchmark-beating returns by maintaining your desired risk level, no matter what market conditions may be. Another point to highlight would be our simple, all-inclusive fee of 0.65% per annum. We have no minimum investment amount and you always have the freedom to withdraw anytime at no extra charge.

Investments

Stocks Discussion

Michael Burry’s latest comment that he sees a bubble in passive investing has definitely grabbed headlines, but I disagree with his argument that index funds are like the subprime collateralized debt obligations (CDOs) that caused the 2008 financial crisis – i.e. passive investing will cause the next market crash. Burry is saying that the whole stock market has become over-valued because of "blind" passive investing. However, the stock index is merely a portfolio of underlying stocks. Burry is implying that because it is put together as a passive index portfolio, investors are no longer valuing the underlying securities and are merely blindly buying and causing a growing misvaluation. But wouldn't short-sellers, e.g hedge funds, take advantage of this by shorting the over-valued underlying stocks? Is he assuming there are no arbitragers in the stock market where "shorting" is relatively easily accessible? What’s more, CDOs are highly leveraged while index funds, for the most part, are not. The underlying stocks of index funds are listed and can be easily traded whereas the debt securities and derivatives that underlie CDOs are more opaque and not so easily accessible to the general public. My view is that is passive investing continues to be a solid investment strategy for most people. If you'd like to find out more, do check out our article here: https://www.syfe.com/magazine/everything-you-need-to-know-about-passive-investing/

Investments

Stocks Discussion

Regular Shares Savings Plans (RSS)

OCBC

Savings

Blue Chips

It’s good that you’re thinking of investing at an early age. But before you start investing, I’d suggest building up your emergency fund, having adequate insurance and minimising any high-interest loans like credit card debts. You can consider RSS plans if you want exposure to Singapore stocks. But if you want a diversified portfolio with exposure to global stocks and bonds, digital wealth managers like Syfe may be another option. (Syfe has no minimum investment amount.) Apart from investing early, diversification is one of the other keys to successful investing. Simply put, don’t invest all your money in the same place e.g. in one specific stock. A diversified portfolio helps reduce your investment risk so that you won’t lose everything if the market underperforms. To diversify your portfolio, you would want to invest in different types of assets such as stocks and bonds. Next, diversify your investments within these asset classes. With stocks, this could mean investing in a mix of large cap, mid cap, and small cap stocks for instance. This is also the reason I generally advise against picking individual stocks. Instead, I recommend investing in Exchange Traded Funds (ETFs) for quick, easy diversification since ETFs allow you to invest in a large number of stocks through a single transaction.

Investments

Savings

Family

Hello there! I believe that everyone can benefit from having a financial plan, no matter their financial situation. A solid financial plan keeps you on track with your saving and investment goals, debt management, insurance coverage, retirement planning, and more. That’s the reason we’ve launched our latest financial planning service – not just for Syfe customers but anyone who wishes to be financially prepared for each milestone in their life. To give you an idea of what advice we can offer, here are some potential questions you may ask: - What sort of investments are right for me? - Am I on track to reach my retirement goals? - How can I provide for my child’s future education needs? - Should I invest in the property market? - How do I plan my budget to take care of my parents and my children? For a more detailed analysis of your finances and the steps you can take to reach your financial goals, simply schedule a call with our Syfe expert. Our planning advice is free and always in your best interest - you will never feel pressured to invest with Syfe or accept any recommendations. And while this service is currently free, it might not be free forever, so do take this opportunity to arrange for a phone consultation with our experts.

Investments

Before you start investing, I’d suggest building up your emergency fund, having adequate insurance and minimising any high-interest loans like credit card debts. For safe and steady returns, you can consider investing in Singapore Savings Bonds (SSB). Backed by the Singapore government, you’re virtually guaranteed to get your principal back in full at the maturity of your bond. The interest on the bond is paid out every 6 months and generally, the longer you hold your bond (you can invest for up to 10 years), the higher your return. Do note that you’ve to be at least 18 years old to purchase the SSB and the minimum investment amount is $500. But as Hariz mentioned, your biggest advantage is time. It’s good that you’re thinking of investing at an early age. Thanks to the power of compounding, the earlier you invest, the more money you will have. As a young investor, your portfolio will benefit from stock investments as well. Stocks have historically outperformed bonds over the long term, and a young investor like yourself should typically be comfortable with a higher stock allocation. What’s the right blend of stocks and bonds for you will be determined by your risk tolerance, your investment horizon and financial goals. You can use a tool like Syfe’s Risk Questionnaire to find out your risk profile and receive a personalised portfolio recommendation. Lastly, don’t let the size of your savings deter you from investing. If you’d like to make smaller-sized investments, there are investment platforms where there are no investment minimums.

Investments

Money FM 89.3 Show

Before you start investing, I’d suggest setting aside an emergency fund containing 3 – 6 months’ of expenses, having adequate insurance, and no high-interest loans. A home mortgage is ok, but try to avoid high-interest debt like credit card debts. In investing, time really is money. The longer you invest, the more money you will have, thanks to the power of compounding. Compounding i.e. time in the market is one of the keys to investment success, rather than waiting for the perfect moment to invest. It's nearly impossible for any investor to time the market perfectly on a regular basis. So, realistically, the best action that a long-term investor can take is to invest as soon as possible, regardless of the current stock market conditions. Furthermore, don’t let the size of your savings deter you from investing at the earliest possible moment. If you want exposure to Singapore equities, you can now invest from as little as $100 each month with Regular Shares Savings (RSS) Plan. If you want a globally diversified portfolio, you can consider digital wealth managers like Syfe. Syfe has no minimum investment amount and unlike traditional brokerages, no commission charge each time you increase your investment. Finally, some advice against picking individual stocks. You should always diversify your investments, rather than go all-in on one specific stock. This way if one underperforms, it doesn’t drag down your whole portfolio.

Investments

Robo-Advisors

Hello there! Thanks for choosing to invest with Syfe. DCA and lump-sum investing each has their pros and cons, but both are preferable to just holding cash and waiting on the sidelines. So, kudos for starting your investment journey! To answer your question, let me briefly outline the pros and cons of each approach. With lump-sum investing, you’re essentially trying to guess what’s the best time to enter the market. If you’re lucky, you could have invested all your money just before a big market upswing. But there’s also the possibility that you could have invested right before a market downturn, potentially wiping out a significant chunk of your portfolio value. With DCA, you avoid the risks of lump-sum investing since you end up investing smaller amounts during both good and bad market conditions. Over the long term, your returns average out to mirror the overall market performance. Which approach to choose depends on your financial situation. If you don’t have a large capital now, DCA is a solid choice since it allows you to start investing earlier, even if it’s $100 each month. The longer you invest, the more money you will have, thanks to the power of compounding. But if you do have a sizable amount of money to invest (after setting aside your emergency fund, buying adequate insurance, paying down high-interest loans), research by Vanguard shows that on average, lump-sum investing is better than DCA two-thirds of the time. As for the second part of your question, we don’t advise changing your portfolio’s downside risk level in response to short-term market movements. During the risk assessment you took before investing with Syfe, we’d have recommended a portfolio that fits your unique risk appetite. Your downside risk level should depend on your risk appetite, and not just on returns. Generally, you may find that your risk appetite has changed after certain life events such as a new addition to your family. In such cases, you may re-evaluate your risk appetite by taking our risk assessment again. Alternatively, you may speak to our Syfe expert for more personalised advice. Hope this helps and wishing you all the best in your investment journey :)

Investments

Kudos for starting your investing journey early! As a first step, my advice would be to try to save more money. Saving more allows you to invest more, accelerating the rate of your compounding returns and the growth of your money. As you embark on your first job, aim to save 20% of your income and invest it in a low-cost, diversified investment portfolio. Instead of trying to spot “winning” stocks, a better alternative would be to adopt a passive investing approach and build your portfolio using Exchange Traded Funds (ETFs). Research has shown that about 90% of active fund managers failed to beat their index targets over the previous one, five and 10 years. So why pay more for actively managed funds when they almost always underperform passive investments in the long run? For young investors like yourself, ETFs make it possible to own a diversified portfolio with relatively low investment thresholds. Investing in an ETF that tracks the broader market e.g. the SPDR® S&P 500 ETF is also a sound choice that allows you to receive fair market returns without having to do much. If you’d like to invest in a basket of globally diversified ETFs but find the capital requirement a challenge, you could consider investing with a digital wealth manager like Syfe. We don’t impose any minimum investment amount and you can withdraw anytime at no extra charge.
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