Are roboadvisors good for long term investment horizon?

One point we might need to consider when robo-investement and etf investment is that the robo-investement company will claim some sales charges and credit us back.

When you buy as normal invester, you might pay higher sales charge compared to via robo-invester firm.

I know StashAway and Endowus do so.

Here's a short and clear answer for you: WE DO NOT KNOW BECAUSE THERE IS NO PROOF.

Robo advisors can back test sure, but which robo advisors has a real track record that goes 10 to 20 year time horizon?

Instead, S&P500 or STI ETF has clear track records and proof that you can COMPARE with.

So long term horizon wise robo advisors vs ETF i would say ETF seems better.

And of course the best if you can pick stocks yourself and you can sleep at night while doing it AND you also beat the S&P500 return (which I do so far).

If you are interested in exploring learning how to pick your own stocks, we teach that at https://courses.rwoa.io/p/value-investing-mento.... Suitable even if you have zero or little investing or business experience.

Hi Zac,

When it comes to long term investment success, the key ingredients will be

1. Being consistent with investing

2. Minimising cost

3. Diversification.

Trying to time the market, taking a stance in market ("maybe I should invest next month, prices look high now") doesnt help you with being consistent.

What roboadviors or digital wealth platform do is that it helps you automatically invest your money, without having you to do your own portfolio investments.

As someone that invests through Endowus and a low cost brokerage like Interactive Brokers, I find merits in using both, but the additional layer of convenience, and disciplined investing is very helpful.

You can read more on how to choose a roboadvisor here!

As a student with little capital and limited cashflow to invest, doing a DIY approach will incur lots of brokerage cost especially since I'm doing a dca each month.

This is where I find robo advisors value adding since they reduce the frictional cost of investing. For robos such as Syfe or Stashaway, there isnt any trading fees and the management fees per annum are kept at around <1.0% including the funds expense ratios. Whether the robo will outperform the index, no one knows for sure but what I do know is that my fees are kept at a minimum while getting instant diversification for my given situation.

However, in the long term the fees do add up since they charge by AUM. I will consider doing a diy passive investing approach once I more funds to invest.