Am thinking to start investing, can anyone advise what’s the difference between those robo advisor and those insurance savings plan? I currently have pruwealth and pruflexicash, is it enough?

Hey there!

Insurance savings plans are not investment plans. Pruwealth and Pruflexi cash are both endowment/savings plans. Typically, endowment/saving plans guarantees your capital (but please look at your BI table, it may be different for you) that comes with a bit of interest.

Investment plans typically invests in funds that are managed/sub-managed by the insurer. The main aim is for upside returns while exposing yourself to the systemic risk of the market, ie. investments are not guaranteed. You typically have an investment portfolio where you can decide the allocation of funds based on your risk appetite. A large part of how your portfolio is managed will be done by the advisor. Through the advisory of your agent (or if you know what you want), you can decide what funds to use. They usually have higher fees as compared to roboadvisors.

Roboadvisors utilize digital solutions by crafting out your protfolio through the use of algorithms. You don't really have a say in how your portfolio is managed since it's all done through the algorithms and they are typically done through a variety of funds/ETFs too. You can also decide the portfolios available, however. They typically have lower fees as compared to investment plans.

Both are great for beginners. If you fancy a human touch and advisory along the way, you can decide to go ahead with an investment plan through an insurer. However if you're okay with just pumping money in and leaving it to the algorithms to manage your investments, then go for a robo.

I must emphasize that the investment plan you're getting shouldnt be a protection based sort since it has high mortality costs. Do make sure you go for a investment-based plan. How you can identify it is that your death benefit of the plan should be the same or just slightly above more than your policy value.

Also, the plan is as good as the agent managing it and the funds. Do make sure your agent knows the performance of the funds and the strategy behind it. Financial planning is an integral part of life. You can reach me here to find out more.​​​