BEST ROBO ADVISORS

What are Robo Advisors?

Robo Advisors are digital platforms that provide automated, algorithm-driven financial planning services with minimal human supervision. Robo Advisors help make investing in the stock market simpler, providing a good starting point for beginners getting into investing.

This does not mean that there are no humans involved. Several services will also provide human advisors that can answer any queries on investing through their platform. However, they are meant to provide broader direction, with automation performing majority of portfolio management.

As with any other provider, Robo Advisors will take into account your financial goals, investment timeframe and risk appetite in order to create the right portfolio for you. These Robo Advisors will manage your investments and rebalance your portfolio when needed, all according to your risk appetite.

As of 2021, Robo Advisors are managing about S$2.15 billion in Singapore

Barely 0.01% of the S$4 trillion asset management industry.

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Widest funding options, CPF, SRS and Cash: Endowus
Invest in REITs: Syfe
Best for emergency fund: Endowus Cash Smart Ultra
ESG: Endowus & Kristal
Most customisation options: OCBC RoboInvest
Robo Advisor Minimum Investment Amount 1 year annualised returns based on highest risk profile Underlying investments Funding options
AutoWealth S$3,000 13.70% ETFs Cash
Endowus S$10,000 15.69% Unit trusts Cash, SRS, CPF
DBS digiPortfolio S$/US$1,000 10.3% (FY2020) ETFs Cash
Kristal.AI 1 unit Not available ETFs, Unit trusts Cash
MoneyOwl S$100 26.55% Unit trusts Cash, SRS
OCBC RoboInvest US$100 Not available Unit trusts Cash
Philip SMART Portfolio S$3,000 18.40% Unit trusts Cash
StashAway None 34.69% ETFs Cash, SRS
Syfe None 23.10% Equity, bonds gold, ETFs, REITs Cash
SquirrelSave None 7.4%(FY2020) ETFs Cash
UOBAM Invest S$1 Not available ETFs Cash
UTrade Robo (UOB KayHian) S$5,000 36.60% Stocks, bonds, commodities and ETFs Cash

This serves simply as a guide to understand the differences between all the providers. We used the returns based on the highest risk profile possible for each provider, because the risk ratings across all providers are not on the same scale.

 

Ultimately when you do sign up, you will be required to do a risk assessment to determine the actual portfolio suitable for you. If you do fall into a lower risk profile than the highest available, the returns will be projected differently.

Robo Advisor / Fund Minimum Investment Amount Projected returns Underlying investments Funding options
Endowus Cash Smart Core S$3,000 0.8%-1% 50% Fullerton SGD Cash Fund
50% LionGlobal SGD Enhanced Liquidity Fund
Cash / SRS
Endowus Cash Smart Enhanced   1.4%-1.6% 50% UOB United SGD Fund
50% LionGlobal SGD Enhanced Liquidity Fund
Cash / SRS
Endowus Cash Smart Ultra   1.8%-2% 27.5% LionGlobal SGD Enhanced Liquidity Fund
25% Fullerton Short Term Interest Rate Fund
25% LionGlobal Short Duration Fund
12.5% Nikko Shenton Income Fund
10% PIMCO Low Duration Income Fund
Cash / SRS
StashAway Simple S$10,000 1.20% 50% LionGlobal SGD Money Market Fund
50% LionGlobal SGD Enhanced Liquidity Fund
Cash / SRS
Syfe Cash+ None 1.75% 35% LionGlobal SGD Enhanced Liquidity Fund
35% LionGlobal Short Duration Bond Fund
30% to LionGlobal SGD Money Market Fund
Cash

It seems that these solutions run on similar underlying financial instruments. In our opinion, using one from a preferred provider will make it easier to manage. For now, most Robo Advisors are fee-less, or have minimal fees, in order to to gain market share.

This could be good options to park part of your emergency fund as the volatility is low. This means the chances of losing captial are also lower than the higher risk funds above. However, note that these returns are projected and not guaranteed.

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We lay out the many options for you.

Marketplace

 

Read more about each Robo Advisor

Pros

  • Low cost of investing
  • Relatively passive
  • Minimal capital to start

Cons of investing in Robo Advisors

  • Portfolio cannot be personalised and is managed collectively according to the fixed portfolio.
  • As most most Robo Advisors right now operate on venture capital funding, the longevity of their business is not proven.

Should you use Robo Advisors? 

Robo investing is an easy way to start investing. While you’re learning about how you can build your investment journey, Robo Advisors are a great starting point to grasp the general inner workings of investing.  

Some reasons you should consider Robo Advisors

  • If you are a new investor
  • Do not have the time to research and execute your investment plan
  • Starting with a small capital sum

It is important to remember that Robo Advisors are not a one-stop solution to all things investment! There are still some qualities that robo advisors lack when it comes to planning and growing your money in the long run. 

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