What is the main advantage your robo-advisor/investing method has over your competitors? (Not taking into account the robo-advisor fees)? - Seedly
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Anonymous

Asked on 30 Apr 2019

What is the main advantage your robo-advisor/investing method has over your competitors? (Not taking into account the robo-advisor fees)?

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Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Updated on 30 Apr 2019

Hi Anonymous, this is Chuin Ting, CEO/CIO of MoneyOwl. Thank you for your question. I will try to describe the value-add that MoneyOwl brings and let you decide how it compares with the other companies mentioned here.

First, MoneyOwl is not really a pure roboadvisor but a bionic financial advisor - meaning we combine human wisdom and tech - we have an investment robo but we also have a substantial team of well trained (fully salaried) client advisers. We believe that good advice helps to bring about a successful investing experience and that such advice must involve a human element. Advice includes asset allocation, risk profiling, fund selection, monitoring, rebalancing and very importantly risk coaching to help investors stay invested through turbulent market times. There are many reports that show that investors lose out on market return because they panic and sell too early. An adviser adds value when he or she can help investors understand how markets work and stay invested over the long term to capture market return, rather than time the market. Because it involves connecting the head and the heart, we need technology to do the quantitative parts but we also need human wisdom and empathy. Hence sometimes I hesitate actually to say we are a roboadvisor!

Second, in terms of scope of advice, MoneyOwl is not only an investment (robo)advisor, but a comprehensive financial adviser. The investment robo module is our third - after insurance and wills - and soon we will launch comprehensive planning where we integrate both CPF planning and investments for retirement planning, plus introduce retirement withdrawal concepts.

Third, we are confident to be this bionic, comprehensive financial advisor because of our DNA and parentage. MoneyOwl is not a pure start-up in that we are a JV between two home-grown Singapore corporates, NTUC Enterprise and Providend, who have been serving Singaporeans for decades. From the NTUC side, we inherit our inclination to serve the ordinary folk through fit-for-purpose solutions, hence our investing quantum starts from $100 lump sum/ $50 monthly. From the Providend side of our parentage, we inherit deep expertise and experience in best-in-class, conflict-free and holistic financial advice.

Fourth, we believe that our investment philosophy and expression of it through the way we construct and manage portfolios - when coupled with advice - give clients a very good chance of a successful investing experience. Because we are at our core advisors, more than fund managers, (even though we have a full fledged fund management licence), we do not define successful investing as being about maximising return or even maximising risk-adjusted return. Rather, we want to advise and structure investments for clients in such a way as to give you the best odds of meeting your goals. From a combination of evidence we have examined and experience including across the GFC, we know that the keys to successful investing lie in 4 areas: being globally diversified; aiming for market-based return, rather than trying to beat the market through "active management" (either by adjusting asset allocations tactically in response to reading of economic conditions, forecasts or events); keeping costs low; and staying invested over the long term.

I hope that this gives you a good picture of how MoneyOwl thinks about its journey with Singaporeans in putting their money to work towards greater financial security. Thank you again for your question!

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Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 6. Master
Answered on 07 May 2019
  1. Investment Strategy

AutoWealth adopts a market returns investment approach unlike many robo advisors which adopt an active discretionary investment approach. This means whilst others attempt to time markets and switch allocations, AutoWealth prefers to stay discipline and emphasize on asset allocation and diversification to manage risk and generate superior returns.

Our investment performance is updated at the close of every quarter and we publish this on our website https://www.autowealth.sg/strategy.php

Whilst we remain confident we can continue to deliver superior investment results, we note that other roboadvisors have not been as transparent as we are in publishing their actual investment performance.

  1. Safeguards

Every client's assets and monies are held in personal segregated custody account in client's own legal name and for his/her legal ownership at our independent partnering custodian. Unlike other roboadvisors, you will not share units of ETFs, nor have unclear ownership. We believe this safeguard is important as its your hard earned savings and wealth.

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Arpita Mukherjee
Arpita Mukherjee, Community Evangelist at Kristal.AI
Level 6. Master
Answered on 31 Oct 2019

Hi Anon!

I work at Kristal.AI, and my mojo is to help people make the right financial decisions.

Thank you for asking this interesting question.

At Kristal.AI, we provide two kinds of services: Our digital solution is ideal for retail investors or investors who want to start with smaller investment amounts by using our investment algorithm. We also offer a private wealth platform, comparable to a digital private bank and which gives accredited investors a broad choice of Kristals and open-ended pooled strategies as well as external funds and hedge funds, full portfolio management, and advisory services. 

As wealth advisors, we take into account the individual investor's profile and preferences, and that is where our strength is.

We have negotiated exceptional brokerage fees and commissions with our partner brokers that allow a minimal trading cost. But as a weakness, we are not a brokerage platform. So if you are looking for day trading or short term, high-frequency trading, our solution is not built out for this. Generally, if you are using our digital platform for up to $ 50,000 in assets, the account is currently free of charge. Above $ 50k the management fee is 0.3% for amounts exceeding 50,000.

Most of our Kristals have no additional management fee except for the expense ratios charged by the ETFs that are part of the Kristal.

We do also give clients the choice to either pick and choose from a wide range of Kristals what they want to invest in, or they can also use our proprietary investment algorithm to allocate their capital.

If you think I helped you, do give me "Thumbs up". If you think my response was biased let me know, I will work on it.

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