The way to approach this is you need to answer a few questions yourself
1) do you already have your emergency funds and budgets set aside? Take it another way, if in one week of investing, this 20k turns to 3k.... Will your life be affected (other than feeling the pain of losing 17k)? If yes, then you should only invest up to the amount you can afford to lose.
2) when do you expect to withdraw the assets from this 20k investment? Is it short term (less than 3 years), mid term or long term (10 years or more)? If short term, and the goal is important eg marriage / buy hdb, then not worth risking it - just do ssb or cash in high yield bank account, rather than missing the goal if things go wrong.
3) are you in for returns that you can see and hold or capital appreciation that depends on the market? If you like to see tangible returns like quarterly dividends in your bank account, go allocate more on dividend stocks and s reits. Warning: seeing dividends deposited in your bank account is highly addictive, but also very assuring that you don't lose everything.
4) if you don't really care about the time frame, and losing up to the amount you put in, by all means allocate more to robos. Fyi the US indexes are already down like 30% year to date, be prepared when robo investing, you could potentially lose more or gain more. But current sentiment, I can tell you the panic selling hasn't reached the end. If you can tahan more than a year or two, this may eventually reverse and you start to see the unrealized gains before cashing the profits out.
Personally I distrust robos for now (you go for the gain path), and they are really just automated technical traders. They can't read financial statements, form judgments about the value of a business... Sometimes I can't figure out what they are buying / selling.
So I stick to my reits and dividend stocks, cause I do read their presentations and results, and so can feel safer and more comfortable about what I own, and the dividends I can realistically expect going to my bank accounts.
response to your comment below:
A suggestion is do a three way split for the first 10-12k (monthly savings plan for the dividend stock to dca if possible). Use 6 months to evaluate / compare which one you feel most comfortable with and can understand, then allocate the last bit accordingly.
20k is not a lot, and I find individual purchase at 3000 or more keeps the sgx fee to a decent level. Try to go max 1 or 2 of each to keep the fees sensible.
The way to approach this is you need to answer a few questions yourself
1) do you already have your emergency funds and budgets set aside? Take it another way, if in one week of investing, this 20k turns to 3k.... Will your life be affected (other than feeling the pain of losing 17k)? If yes, then you should only invest up to the amount you can afford to lose.
2) when do you expect to withdraw the assets from this 20k investment? Is it short term (less than 3 years), mid term or long term (10 years or more)? If short term, and the goal is important eg marriage / buy hdb, then not worth risking it - just do ssb or cash in high yield bank account, rather than missing the goal if things go wrong.
3) are you in for returns that you can see and hold or capital appreciation that depends on the market? If you like to see tangible returns like quarterly dividends in your bank account, go allocate more on dividend stocks and s reits. Warning: seeing dividends deposited in your bank account is highly addictive, but also very assuring that you don't lose everything.
4) if you don't really care about the time frame, and losing up to the amount you put in, by all means allocate more to robos. Fyi the US indexes are already down like 30% year to date, be prepared when robo investing, you could potentially lose more or gain more. But current sentiment, I can tell you the panic selling hasn't reached the end. If you can tahan more than a year or two, this may eventually reverse and you start to see the unrealized gains before cashing the profits out.
Personally I distrust robos for now (you go for the gain path), and they are really just automated technical traders. They can't read financial statements, form judgments about the value of a business... Sometimes I can't figure out what they are buying / selling.
So I stick to my reits and dividend stocks, cause I do read their presentations and results, and so can feel safer and more comfortable about what I own, and the dividends I can realistically expect going to my bank accounts.
20k is not a lot, and I find individual purchase at 3000 or more keeps the sgx fee to a decent level. Try to go max 1 or 2 of each to keep the fees sensible.