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.
Best Robo Advisors
Widest funding options, CPF, SRS and Cash: Endowus
Invest in REITs: Syfe & Endowus
Best for emergency fund: Endowus Cash Smart Ultra
Invest in ESG: Endowus & Kristal
Most customisation options: Endowus
Investing with Artifical Intelligience: SquirrelSave
| Robo Advisor | Minimum Investment Amount | Underlying investments | Funding options |
| AutoWealth | S$3,000 | ETFs | Cash |
| Endowus | S$1,000 | Unit trusts | Cash, SRS, CPF(OA) |
| DBS digiPortfolio | S$/US$1,000 | Equities, ETFs, Unit trusts | Cash |
| Kristal.AI | 1 unit | ETFs, Unit trusts | Cash |
| MoneyOwl dimensional fund | S$100 | Unit trusts | Cash, SRS |
| OCBC RoboInvest | US$100 | Equities, ETFs, REITs | Cash |
| Philip SMART Portfolio | S$300 | Unit trusts | Cash |
| SaxoWealthCare | S$25,000 | ETFs | Cash |
| StashAway | None | ETFs | Cash, SRS |
| Syfe | None | Equity, Bonds, Gold, ETFs, REITs | Cash |
| SquirrelSave | S$1 | ETFs | Cash |
| UOBAM Invest | S$1 | ETFs, REITs | Cash |
| UTrade Robo (UOB KayHian) | S$5,000 | Stocks, Bonds, Commodities and ETFs | Cash |
Updated: 25th January 2023
For cash parking solutions
| Robo Advisor / Fund | Minimum Investment Amount | Projected returns | Underlying investments | Funding options |
| Endowus Cash Smart Secure | S$1,000 | 3.3%-3.6% | 50% Fullerton SGD Cash Fund 50% LionGlobal SGD Enhanced Liquidity Fund | Cash / SRS |
| Endowus Cash Enhanced | S$1,000 | 4.0%-4.3% | 50% UOB United SGD Fund 50% LionGlobal SGD Enhanced Liquidity Fund | Cash / SRS |
| Endowus Cash Smart Ultra | S$1,000 | 4.5%-4.8% | 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 | 2.8% | 30% LionGlobal SGD Money Market Fund 70% LionGlobal SGD Enhanced Liquidity Fund | Cash / SRS |
| StashAway Simple Plus | None | 4.6% – 5.0% | 45% LionGlobal Short Duration Bond 35% Nikko Shenton Income Fund 20% LionGlobal SGD Enhanced Liquidity Fund | Cash / SRS |
| Syfe Cash+ | None | 3.0% | 70% LionGlobal SGD Enhanced Liquidity Fund 30% to LionGlobal SGD Money Market Fund | Cash |
Updated 25th January 2023
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 capital are also lower than the higher risk funds above. However, note that these returns are projected and not guaranteed.
Start investing with confidence
We lay out the many options for you.
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.