Phillip SMART Portfolio
Asked by Anonymous
Asked 3w ago
How are the returns like? And does it count as a diversified portfolio if robo-investors buy into many funds and stocks?
The returns will depend on the risk profile you set with the robo-advisor, more conservative portfolios will return lower but more consistent returns while higher risk portfolios will see higher returns (albeit potential higher standard deviation). Do go through the entire KYC process with the robo advisor before choosing the risk profile which suits you the best!
Depending on the risk profile you choose, the robo will allocate/diversify the portfolio accordingly. eg. more conservative portfolios will see higher allocations in bonds vs stocks and vice versa for a more aggressive profile.
As amanda mentioned, you can check out the reviews for the robos on Seedly and see if you can relate to any specific experience. You can also read this article which Seedly has covered regarding the available robo-advisors here as well: https://blog.seedly.sg/singapore-robo-advisor-investment-comparison/
You can view some reviews on Seedly here:
OCBC RoboInvest https://seedly.sg/reviews/robo-advisors/ocbc-roboinvest
Feel free to comment to engage in a discussion with the reviewer. I hope this helps! (:
Higher risks, higher returns and vice versa~
Roboadvisors do use diversification in accordance to your risk profile:
Higher risk = higher exposure to stocks, lower exposure to bonds
Lower risk = lower exposure to stocks, higher exposure to bonds
So it is quite well-rounded
For robo-advisors, they usually have different risk profiles for you to select. For higher risks profiles, you will get higher returns (of course you need to bear the risks as well). It definitely counts as a diversified portfolio, however I would suggest you to treat robo-advisors as a "stock", and create your other baskets through self investment into stocks, bonds etc.
There are quite a few reviews on Seedly for different robo-advisors, you can check it out!
Seedly has some reviews of this products as mentioned by amanda. That aside, my feel is that such platforms charge quite a high comission fee but is probably the best option for small time investors below 5k each trade. If above consider the sti etf or if you yourself is proficient in stock picking, do it your own