Low capital start up - if I have 10,000 for a start. Does it make sense to put into 2 robo Advisors or just put into 1 and continuously put money in? - Seedly
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Anonymous

Asked on 05 Apr 2019

Low capital start up - if I have 10,000 for a start. Does it make sense to put into 2 robo Advisors or just put into 1 and continuously put money in?

Looking at putting in 4K per month 2k in each ?

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Paridhi Jhunjhunwala
Paridhi Jhunjhunwala, Associate at Kristal.AI
Level 7. Grand Master
Updated on 07 Nov 2019

Hello!

I think that while starting up with a small capital, the main concern is about the amount that will be eroded by management fees. In that perspective, robo-advisor will be a good choice due to the lower fee charged by them.

However, I think that investing with 1 robo-advisor would be a better choice. Most platforms will provide different investment strategies and various underlying options such as ETFs, REITs, etc. under one roof, so you will not require multiple advisors to diversify.

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

I hope you find this helpful! Happy investing!

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Zann Chua
Zann Chua
Level 6. Master
Answered on 05 Apr 2019

Hello!

I think that putting it into 2 roboadvisors instead of 1 might be better since there is some sort of diversification and diversification is important when it comes to investing. However, if you are thinking of putting into 2 roboadvisors due to diversification, i personally think that trying other forms of investment would be better. I personally would put money into 1 roboadvisor and use the rest of my money to invest in other areas such as stocks and maybe ETFs or REITs.

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It might be good to diversify and test their strategies, but you honeslty wouldn't know much about their algos in the short term because they don't really have a long track record.

This is why I've recently been looking at EndowUs, who instead of using ETFs, they use established, low-cost, institutional class, funds as their investment vehicle instead. Longer track record with sound and tested investment strategy that has outperformed global benchmarks since inception.

If you want to link up with them, let me know. :)

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