What is the considerations for staying put or pulling out when investing through robo-advisors? - Seedly
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Asked by Anonymous

Asked on 13 Mar 2019

What is the considerations for staying put or pulling out when investing through robo-advisors?

I tried out 3 of the local robo advisors all at once from March 2018 (same inception period, i.e. within a week invested in all 3), with similar risk profile leaning more on the equity side. Stashaway is a clear winner (+3.3%), Smartly +2.3%, but Autowealth is +0.003% (worse than my bank account). Looking at this alone I feel that I should withdraw altogether from Autowealth. Am I making a hasty decision for pulling out, or are there other considerations when deciding?

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HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 8. Wizard
Answered on 18 Mar 2019

In short, roboadvisor is basically the renew unit trust using different algorithms to managed the funds thus provides lower fees than unit trust or a human fund manager.

However, they all remains the same requires investor to invest long term at least 8 years and above to see good positive results, a short months / years may or may not works well depends on the market situations.

Thus out of the 3, or even more, suggestion maybe you could see what make sense of their investment algorith / regime use.

Most importantly is the fees that they charge as it's a recurring regular cost that if is relatively high, would eat into your returns.

I invested in Stashaway and basically I attend their events, readup review on their algorith / investment theory, check out the fees that fits my budget and read up existing investor review.

Check out Seedly comparison: https://blog.seedly.sg/singapore-robo-advisor-investment-comparison/

(Do check their individual website for the fees in case of any updates!)

Check out seedly members review for those who were already investors of the robo advisor:

https://seedly.sg/reviews/robo-advisors

Hope all the above helps you to reach a good conclusions. Cheers!

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