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Susmit Agrawal

Posted on 30 Jun 2020

Which is the best robo-advisor for DCA?

I am quite young and working for a while. I would like to DCA 2K monthly and looking for avenues to grow my CPF OA account.

Which Robo advisor would you guys advise?

I am confused between Kristal.AI, StashAway, Autowealth, FSMone and Syfe.

I am willing to take risks.

I have shortlisted these funds at Kristal.AI

https://kristal.ai/etfs/vgt-vanguard-information-technology-etf

https://kristal.ai/etfs/spyg-state-street-sp-500-growth-etf

https://kristal.ai/etfs/voog-vanguard-us-large-cap-growth-etf

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4 answers

Discussion (4)

Hi Susmit, you seem interested in US and tech stocks based on the funds you've identified. Syfe's new 100% equities portfolio could be right for you. It is designed for investors who are comfortable taking risks and who want to maximize their exposure to global stocks.

Equity100 is constructed using stock ETFs that collectively invest in over 1,500 stocks from the world’s top companies. These include Microsoft, Amazon, Apple, Facebook, Walmart, Alibaba, Novartis and more. 

Invesco QQQ ETF and the iShares Core S&P 500 UCITS ETF (CSPX) are some of the ETFs held within the portfolio. To provide better risk-adjusted returns, Equity100 also uses a Smart Beta investment strategy. The portfolio is tilted towards growth, large market capitalization and low volatility factors.

If you're planning to DCA, you'll find the Equity100 portfolio to be very cost efficient. Syfe has no brokerage charges and no minimum investment amount, which makes it ideal for regular investments. Our low fees start from 0.4% per year. Moreover, there's no lock-in period and you can withdraw your funds anytime at no charge.

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The difference between Kristal.AI and other robo advisor is that you have the freedom to choose the ETFs you want to invest in. On the other hand, other robo advisor has a fixed set of ETFs to be invested which doesnt give investors an option to decide what they want to invest in. I think there's pros and cons to it. For people who do not know which ETF to buy, a fix set of ETFs to be invested in will be better, otherwise having a freedom to choose the ETFs will be better.

That being said, Kristal.AI will be preferred for you since you know what ETFs to buy. The thing that I do not like about robo advisor is that they charge based on asset under management. This means that your fees will grow every year if you continue to buy regularly.

Therefore, I would like to suggest to consider Interactive Brokers as it is a typical broker that charges based on transaction. I believe that in the long run, the cost will be way cheaper.

I would have recommended FSMOne's ETF RSP but the ETFs that you have selected are not available on their list.

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1 more comments

achhay

07 Jul 2020

RSP stands for Regular Saving Plan. FSMone has about 40/40plus ETFs to choose from, it's DCA on a monthly basis. I switched from Stashaway to FSMone few months back as I can select which ETfs to buy, and a calculation I did shows slightly lower fees. Also, FSMone has no algorithm to re-optimise your portfolio. U decide what to do on your own. So it is good for those who has some experience/exposure to investing.

Jay Hou

Jay Hou

07 Jul 2020

Thank You!

Post

Yang Teng

Yang Teng

Level 15. Grandmaster

Posted on 01 Jul 2020

There are two parts to the question but i'm not sure if they are related.

Currently, the only robo...

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