PUBLISHED November 23rd, 2020 06:00 am | UPDATED December 2nd, 2020 07:02 pm
Robo advisors sound like creations from some sci-fi utopia, and in a way they are. Replacing the human investment manager of old, robo advisors are digital platforms that recommend portfolios for you based on various algorithms, monitor markets in real time, and carry out rebalancing automatically. These fuss-free platforms make it easy for everyday folks to invest passively in the long-term – and they come at far lower cost than traditional advisors.
Automated doesn’t mean identical, of course – each robo advisor runs on unique algorithms based on its creators’ financial know-how, and offers different fee structures. If you’re just starting out, you might want to dabble in a few to find out which best fits your resources and investment goals. Here, we compare five of the most beginner-friendly robo advisors in Singapore.
StashAway
StashAway is one of the most popular robo advisors in the game, and it’s not hard to see why. With no minimum deposit, a user-friendly app interface, and plenty of educational soundbites at every step, kickstarting your investment journey here is a cinch.
StashAway’s algorithms run on its Economic Regime-Based Asset Allocation framework – a strategy which analyzes historical and current market behaviour to predict macroeconomic trends and reallocate your assets in response. Unlike some other robo advisors, however, you won’t be able to customize your portfolio or select individual ETFs you prefer.
Management fee: 0.8% for first S$25,000
Minimum investment: None
Check out StashAway here.
MoneyOwl
Part social enterprise, part financial advisor, MoneyOwl is a joint venture between NTUC Enterprise and Providend. Unlike fully automated apps like StashAway, MoneyOwl runs on what it dubs a bionic approach – a robo platform combined with access to human advisors for consultations. That means you get all the perks of personal attention and solutions, with none of the commission charges.
Another key difference is in portfolio construction – whereas most robo advisors use Exchange Traded Funds (ETFs), MoneyOwl builds its portfolios on unit funds from reputed global manager Dimensional Fund Advisors. And to support Singaporeans post-pandemic, the platform has slashed all advisory fees from 0.65% to 0% till the end of next year. How’s that for accessible?
Management fee: 0% for first S$10,000 (till 31 December 2021)
Minimum investment: S$100 lump sum or S$50 per month
Check out MoneyOwl here.
AutoWealth
If you can see yourself investing serious sums down the road, AutoWealth is for you. Founded by ex-GIC investment banker Ow Tai Zhi, this robo advisor comes with a fairly steep minimum investment of S$3,000. Its flat management fee of 0.5% is one of the lowest around, though – once you pass the S$10,000 investment mark, your savings start to speak for themselves.
AutoWealth’s portfolios comprise index-tracking ETFs, highly diversified across four geographical regions – the US, Europe, APAC, and Emerging Markets – and across all major stock sectors. Its platform isn’t the most user-friendly, but you do get the benefit of a personal advisor who’s just a Whatsapp text away.
Management fee: 0.5% flat fee + USD18 platform fees per annum
Minimum investment: S$3,000
Check out AutoWealth here.
Kristal.AI
Have a good idea how you want your investment portfolio to look like? Kristal.AI stands out for its flexibility in accommodating preferences – whether you’d like to invest more heavily in tech or eschew a certain country’s market, this platform can tailor your ETFs to your tastes.
What’s more, rather than simply crafting strategies by risk appetite, Kristal’s strategies are themed. ‘Katalyst’, for instance, offers exposure to growing sectors like healthcare, while ‘4Sight’ focuses on cutting-edge sectors including genome research and cyber security. With zero management fees below USD50,000, it’s a great option for both small-time and mid-tier investors.
Management fee: 0% for first USD50,000
Minimum investment: None
Check out Kristal.AI here.
Endowus
Endowus’s S$10,000 minimum deposit might sound off-putting, but it’s got one key edge over its peers. While many robo advisors allow you to invest with your Supplementary Retirement Scheme (SRS) savings, this is the only one offering the option of using your CPF funds. Depending on your risk appetite, Endowus claims to predict potential returns of 3% to 9% annually – a pretty tempting prospect compared to the 2.5% returns guaranteed by the Singapore government.
Like MoneyOwl, Endowus’ portfolios focus on mutual funds overseen by professional fund managers. The platform opens doors to best-in-class funds from PIMCO, Vanguard, and more – many of which are not usually accessible to retail investors. With a flat management fee of just 0.4% to boot, it’s ideal for those with capital to spare.
Management fee: 0.4% flat fee for CPF and SRS, 0.6% for first S$200,000 cash
Minimum investment: S$10,000
Check out Endowus here.
Here’s a handy table to compare each robo advisor in Singapore at a glance:
| Cash, SRS, or CPF? | Management Fee | Minimum Investment | Portfolio Makeup | |
| StashAway | Cash and SRS | 0.8% for first S$25,000 | S$0 | ETFs |
| MoneyOwl | Cash and SRS | 0% | S$100 | Unit funds |
| AutoWealth | Cash | 0.5% + USD18 platform fees | S$3,000 | ETFs |
| Kristal.AI | Cash | 0% for first USD50,000 | S$0 | ETFs |
| Endowus | Cash, SRS, and CPF | 0.4% for CPF and SRS; 0.6% for first S$200,000 cash | S$10,000 | Mutual funds |