Asked by Anonymous
Updated on 18 Apr 2019
For a start, I would not outright recommend Robo-advisor alone for beginners. I believe that everyone should have a portfolio of different products to diversify their risk.
As much as Robo-advisors allow a low cost and certain degree of diversification, it will be good to really understand where all the money is going to and how else can you enhance it.
I am currently on Stashaway to give myself a little bit of exposure to the overseas market. This is however, only after I have a little bit of Singapore Savings Bonds and STI ETF and of course, insurance coverage.
As beginner, it is good to build a good base of stable, low-risk investment products, which at the moment, I would not be considering Robo-advisors as low risk yet.
Hi there! I would recommend you to consider a few things:
1) What are robo advisors: Robo advisors mainly promise Low-cost Diversified Passive Investing Unlike traditional funds, they have less fees and easier to use product
2) Which to consider: There are 3 main contenders in Singapore: Stashaway, AutoWealth and Smartly. The other 2 are by older players in the market: FSM MAPS and POEMS SMART.
Each has their own pros and cons. I'm personally on Stashaway, but so far the returns have not been great due to a pretty bad market since the turn of 2018. Till date, my returns have been -1.5% as it has been up and down. But at the end of the day, I plan to Hold on for almost 10 years (a long duration) so let's see!
But I would highly recommend you to read a few things: