Anyone used robo advisors? What have your returns been like? - Seedly
 

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Robo-Advisors

Asked by Anonymous

Asked on 16 Dec 2019

Anyone used robo advisors? What have your returns been like?

Is it worth getting robo advisors? I know they help you to diversify your portfolio, is it worth investing in them?

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Wallace Chai
Wallace Chai
Level 9. God of Wisdom
Answered on 21 Dec 2019

Not sure about their returns but you can check it with them or do some simple search though. You need to know how much returns you are looking at before you dexide what to invest. For myself, i choose to select individual stocks and invest in them like business owner. I feel better to manage my own money and portfolio.

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HI Anonymous,

Even without roboadvisors, you can diversify portfolio, since many of them invest in funds or ETFs that are basically securities that are listed in different stock exchanges,

What these platform do is to give you access to investments at a lower transaction cost, since they often charge a flat % fee on a per annum basis.

Some considerations that you have is the size of your portfolio, the time you want to spend in investing.

When your portfolio is of a significant size, it may be cheaper to invest through a low cost brokerage like Interactive Brokers (I do this for a huge part of my cash portfolio).

The good thing about Endowus (and potentially other platforms) is that you can set a recurring investment for cash, CPF and SRS so that you can spend absolutely no time buying the funds. I have friends that try to buy ETFs on their own but they end up trying to buy it at a lower price and in the end they rarely get to investing as prices keep going up. In the end it is up to you and your own temperament.

i wouldnt be too fixated about looking at current returns - some of these companies have only started for 2-3 years. But do note that for platforms like Endowus and Moneyowl, the funds' historical returns are more indicative of our future performance since we are basically distributing mutual funds without trying to trade on them.

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Paridhi Jhunjhunwala
Paridhi Jhunjhunwala, Associate at Kristal.AI
Level 7. Grand Master
Answered on 20 Dec 2019

Hi!

Agreeing with Wilson, you do not invest in a robo advisor, but you can invest through them. A robo advisor is capable of creating an ideal portfolio for you based on your financial goals and risk appetite. The returns will depend upon the amount of risk that you are willing to take as returns go hand-in-hand with risk. Hence, a person with a portfolio with higher risk exposure should provide a higher return as compared to one with low exposure to risk.

I work at Kristal.AI, and it's my passion to evaluate various upcoming investment opportunities.

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Wilson Nid A Break
Wilson Nid A Break
Level 8. Wizard
Updated on 19 Dec 2019

You dont invest in robo-advisors, you invest through them. Robo-advisors are bascially your digital money-managers driven by algorithims to invest and rebalance on your behalf in ETFs in accordance to your risk appetite.

At the end of the day, the main determinent & success of your portfolio return depend whether the ETFs itselves have long-term fundamental growth + your own discipline to do regular contribution to the robo-advisor even through bearish periods.​​​

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JW
jiajing wang
Level 5. Genius
Answered on 19 Dec 2019

I am Using StashAway and the returns has been good.. At least it's above my expectation of 3% over these 6 months. I will think it's worth and the returns you might or loss you might have depends on the risk factot of your portfolio.

Most importantly, it is worth if you are able to hold your investment for 3 to 5 month and diligently invest more money now matter how it fluctuate

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Joel Yeo
Joel Yeo, Financial Consultant at Prudential
Level 2. Rookie
Updated on 18 Dec 2019

Hi Anon!

I just started using robo advisors this year!

So far have invested in Stashaway, MoneyOwl, Smartly, Autowealth. (Earlier this year) and recently in Kristal.AI and Syfe!

I personally am a strong believer of robo-advisors as i have seen a growth of around 10% annualized returns from a risk index of 20% on Stashaway.

(Yes less than a year!)

-Recently added a few more portfolios with higher risk index and my 36% risk index is showing around 7% returns in only 4 months.

For most of the other robo-advisors, i tend to go for the most aggressive portfolio as i do not need the cash in the short run and plan on using it in the future.

All of them are currently showing positive returns from 3-10%.

So yes i would most defintely recommend robo-advisors but at the end of the day it is entirely up to how much risk are you willing to take, what & when do you need the money for, etc..

And of course, if you have any doubts, there are plenty of people out there who have experience in this field, so feel free to ask aroun​​​

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Leo Chin Ho
Leo Chin Ho

20 Dec 2019

I can provide stashaway info but it wasnt that long period and i have with the highest risk 36%. This is the following returns for each month: 2019 Aug -0.6% Sep 1.33% Oct 2.33% Nov 2.93%