Robo-advisors in Singapore represents a personalised trust where investors can invest their money in.
They provide a investment solutions based on mathematical rules or algorithms. These algorithms are calculated and programmed by humans based on financial models and risk appetites set by the company, and requires lesser human supervision.
This is in contrast to actively managed funds which are run by mutual fund managers. With the use of algorithm, the cost of managing the fund is cheaper as compared to the hefty 2-3% management fee that fund managers usually charge.
In Singapore, most of the robo advisors invest in US and global ETFs, and the portfolios are usually exposed to a variety of asset classes which encompasses equities, commodities and gold.
In Singapore, the process for signing up to invest with a Robo Advisor is as such:
As most of these are done with the help of algorithm, investors cannot actively choose to allocate their investment different from the fixed portfolio provided.
Currently there are a few major Robo-advisors in Singapore.
They are mainly:
To help Singaporeans make smarter personal finance decision, here are some tools to help you:
One can read up our comparison article on all the robo-advisors here: