Would Stashaway or Kristal.AI be better for a Final Year Uni student with about $5k to $10k to invest? Would lump sum or monthly contribution be better? - Seedly
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Anonymous

Asked on 08 Jun 2020

Would Stashaway or Kristal.AI be better for a Final Year Uni student with about $5k to $10k to invest? Would lump sum or monthly contribution be better?

I do not have any student loans/liabilities. I have sufficient insurance coverage and have a comfortable amount of personal savings, but do not have an active income stream (i.e. not working yet). Only big item purchase I might have is downpayment for BTO 5-room within the next 5 years. I have never invested before, but am looking to start with robo-advisors for medium risk passive investments. I have about 5 - 10k to start with, but am struggling to choose between stashaway or kristal.

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JG
Joey Gaeth
Level 5. Genius
Answered on 08 Jun 2020

Hi, i'm also starting my final year of uni this Aug. I've used both Stashaway and Kristal.AI so here are my 2cents worth.

Firstly, for Stashaway, it's pretty clean & easy, deposit your money and then they'll do the rest. SA will use all the funds and buy fractional shares. I prefer this method so i can put any odd sum of money (eg $515) and it'll all be invested. Just to note, during the month of March when stocks were plunging badly, i DCA $50 weekly all up to 3rd week April. Now, i'm sitting on almost +9.60% return (SGD). SA did re-optimse and sold some US stocks, such as the S&P500 IVV and VGK. Invested into China's KWEB and BNDX instead.

Secondly, for Kristal.AI, a good thing it has over Stashaway is that YOU CAN CHOOSE whatever ETFs u want to invest in. Personally, i used it for QQQ (also sitting on +ve return; created acct in March). Only big downside i feel is that they use the unit NAV and u must deposit min 1 unit. So if u have $5k and assume you want to DCA monthly $500 into Kristal, u will only be able to invest 2units, using the unit NAV price of US$239.69.

Personally, if u have $10k, i'd recommend u can try invest 5k into Stashaway and 5k into Kristal, DCA monthly $800, and then see how it works for you the next 6 months.

Meanwhile, u can read up on more investing books/financial blogs, gain some financial knowledge and create a CDP account so u can DIY your own SG stocks, or an overseas brokerage (IG, TD) for US/HK stocks.

Hope it helps!

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Gerald Ho
Gerald Ho
Level 4. Prodigy
Answered on 08 Jun 2020

With a lump sum, the money would be better invested directly in blue chips or ETFs; I feel that stashaway or Kristal.ai is better for monthly investments i.e. making use of dollar cost averaging.

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Katrina

09 Jun 2020

Best to buy at a value price for lump sum purchase. Make your lump sum purchase worth because of the brokerage charges.
YT
YT
Level 9. God of Wisdom
Answered on 08 Jun 2020

It would depend on your investment knowledge and convenience desired.

StashAway is a convenient approach that is hassle-free and requires zero intervention. However, the convenience comes at a cost (0.8% for first $25,000). The in-house algorithm is fixed but tailored to your risk profile. If you dislike having gold for example in your portfolio, you are unfortunately unable to do anything about it.

Kristai.Ai offers free management for the first USD$50,000. For those who know which funds they want to invest in, they can buy from Kristal.Ai at low cost. However, the platform does not allow for fractional investment and hence requires clients to buy the security with a minimum of 1 lot. This is troublesome since you be unsure how much SGD to deposit to convert to USD to buy the particular security and may end up with excess or shortage of cash.

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Jay Hou
Jay Hou

08 Jun 2020

Not sure what is it so difficult or troublesome with knowing the FOREX rate, a good robo would definitely offer a rate when clients are considering buying the USD security (needless to say the client must put in a bit of buffer no matter what, just like buying USD stocks or other currency stocks in SGX) and then maybe make some adjustment (some will charge a fee when doing exchange)
MT
Mackenzie Tan
Level 3. Wonderkid
Answered on 09 Jun 2020

If you only have $5-10k to invest, i'd say go with DCA monthly. Firstly because in this volatile and uncertain covid-19 economy, no one knows what will happen to stock prices. Surely, it has rebounded back and some economists predict this will be a V-shaped recovery but no one knows for sure. DCA monthly $500 into both Stashaway and Kristal will be a safe move. Also lump-sum strategy may work well if you believe that stock prices will be going up, but take note of brokerage costs. I'm assuming you're wanting to invest in US stocks since u suggest both robos that portfolios globally, take note of brokerage charges. With $5k-10k, make sure you consider your currency conversion fees, platform fees, dividend g=handling fees and so on.

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