As of 2020, Singaporean robo advisors are estimated to command about S$1.5 billion in assets under management, spread out over about 105,000 users. Although this is but a fraction of the country’s S$3.4 trillion asset management industry, their growth is promising, and they are increasingly becoming part of the ‘standard’ investment menu – especially among the younger generation.
But their growing popularity also means that investors today have quite a few robo advisors to choose from. Here are our picks for the five best robo advisors in Singapore – each the leader in their own unique category.
But first, what are robo-advisors?
Robo advisors are digital advisory investment services driven by an algorithm. Services include the automated maintenance and handling of your personal investment portfolio, based on their understanding of your financial goals and risk appetite. The main benefits of using a robo advisor are:
- a small management fee of between 0.5% to 1%
- minimum investment as low as $100
- easy monitoring of your portfolio through mobile app
After signing up for an account with a robo advisor, you will be required to complete an online questionnaire and enter personal information, your risk tolerance and financial situation, as well as your financial goals. You will also be required to deposit money into your account, which will be used to invest. Upon making an assessment of your investment goals and preferences, a robo advisor’s algorithm will then automatically invest your money through selected portfolios which suits your investing profile. A robo advisor basically replaces the human element in investing and managing your portfolio, which is why they charge much cheaper management fees.
|Robo Advisor||Primary Advantages||Drawbacks|
|StashAway||Highly user-friendly and relatively well-capitalised||Fees are on the higher side for smaller amounts|
|Kristal.AI||Most attractive fee structure|
Gives you the DIY option of building your own portfolio
|Not so transparent or user-friendly|
|Endowus||Allows you to access Smart Beta and actively managed fixed income products like Dimensional, PIMCO at the lowest all-in cost|
Allows you to invest your CPF Ordinary Account funds at competitive rates
|Actively managed funds may carry high expense ratios|
Relatively high minimum investment amount and account size
|Syfe||Gives you exposure to a Singaporean REIT index||Company is thinly capitalised|
|UOB Utrade Robo||Run directly by a bank, so very little chance of business failure|
Most competitive fee structure among bank-run robo advisors
|More expensive than non-bank robo-advisors|
Does not tell you the ETF options upfront