I'm comparing between the different types of robo advisors. What are the risks associated and which is best? - Seedly
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Robo-Advisors

Kristal.AI

StashAway

Anonymous

Asked on 19 Mar 2020

I'm comparing between the different types of robo advisors. What are the risks associated and which is best?

I've looked at every robo. What are the downsides between choosing, for example, StashAway and other robos? Seems like this is the cheapest but seems like too good to be true. Anything I am missing?

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Eliezer
Eliezer, Content & Community Lead at Syfe
Level 6. Master
Answered on 30 Mar 2020

At Syfe, the security of our clients' money is of utmost importance to us, and that we have stringent measures in place to prevent an event like a closure from happening.

Syfe is licensed by the Monetary Authority of Singapore (MAS), and we hold a Capital Markets Services (CMS) License for retail fund management. As a CMS license holder, we have met all the requirements and standards set by MAS to prevent a bankruptcy event from happening, and to keep our clients’ funds and assets safe. This includes meeting the minimum capital requirement, as well as audits and compliance to ensure that Syfe has sufficient daily cash flow to meet all operational needs.

Funds in your Syfe account are held in a Trust Account in DBS Bank while your investments are kept in a Custodian Account through Saxo Capital Markets. These are held separately from Syfe’s assets. This means that Syfe will never be able to use your funds and assets, even in the very unlikely event that Syfe stops operating. In that unlikely scenario, we will ensure that all your assets and funds are returned to you as soon as possible. Your interest will remain the primary focus for us.

All clients are also free to withdraw their money any time they wish. Syfe does not impose any exit penalties or lock-in periods, so clients are genuinely able to access their money any time.

Rest assured that it is always safe to invest with Syfe. In the midst of the evolving COVID-19 situation, we have taken steps to ensure there will be no interruption to our services. We have also been seeing steady growth throughout this period as more and more new investors trust their money to us, and our existing clients stay on track with their investment plans.

You can also read more about our performance during this period here: https://www.syfe.com/magazine/coronavirus-pandemic-how-syfe-builds-resilience-into-portfolios/

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CJ
Cynthia Jasmin
Level 6. Master
Answered on 30 Mar 2020

Hi There,

if Kristal AI folds there will be a MAS approved liquidator in place. In case anything happens to Kristal.AI, MAS will ensure that all assets are returned to the registered client.

Client has to redeem investments and transfer cash - this will incur, nominal charges. The charges are based on actual transaction or handling fees charged by custodian brokers / banks. Kristal.AI does not charge for such withdrawal.

Is it safe to invest with Kristal.AI?

Kristal.AI got a fresh 6 mil funding just last December and they are growing responsibly - meaning no burning money on growth acquisition or mass marketing campaigns. In total, Kristal.AI currently has $11m of funding.

Kristal.AI should be safe as they have plan to raise Series B after meeting certain KPIs and when the coronavirus situation is handled, of course. Meanwhile, they are earning through their business model (0.3% for accredited investors/ private wealth clients). They have about $120+ mil AUM. 

Hope this helps,

Cynthia

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