Robo advisors have emerged as a game-changer in Singapore, reworking the best way Singaporeans strategy funding and wealth administration. These digital platforms harness the ability of algorithms and cutting-edge know-how to supply personalised funding recommendation and portfolio administration companies, making investing extra accessible and cost-effective than ever earlier than.
In a nation famend for its excessive financial savings price and rising curiosity in monetary planning, robo advisors have shortly gained traction, providing a compelling resolution for people looking for to optimise their wealth. The adoption of robo advisors in Singapore has seen important progress, to the extent the belongings beneath administration (AUM) within the robo-advisors market in Singapore is projected to achieve almost US$1.49 billion in 2024.
In reality, Statista Market Insights expects the common AUM to be round US$12.46 million per person this yr, and forecasts that the variety of robo advisory customers in Singapore will shoot as much as 13.77 million by 2028. However with a rising person base comes growing competitors, and a digital funding platform that gives differentiated merchandise however nonetheless solves consumer funding complications is prone to be in demand.
In the very best situations, an excellent robo advisor in Singapore ought to boast a user-friendly interface, clear charge construction, various funding choices, and sturdy safety measures to safeguard shoppers’ belongings. Furthermore, the power to customize portfolios primarily based on particular person threat tolerance and monetary objectives, coupled with instructional assets and clear communication, units the very best robo advisors aside within the aggressive Singapore market.
Because the fast-growing trade continues to evolve, pushed by developments in know-how and altering investor wants, will probably be more and more essential for people to fastidiously consider their choices and select a robo advisor that aligns with their monetary objectives, threat tolerance, and values. To assist information decision-making, listed here are 10 robo advisors presently working, and what differentiates them within the Singapore market.
#1 StashAway
StashAway, a trailblazer within the Singapore robo advisory scene since its inception in 2016, swiftly rose to prominence and has since turn out to be a recognisable mainstay.
The platform’s distinctive promoting level lies in its personalised funding strategy, which utilises the Financial Regime-based Asset Allocation (ERAA) framework. This revolutionary methodology takes into consideration international financial developments and market situations to optimise portfolio efficiency.
StashAway affords a wide selection of worldwide diversified portfolios, catering to traders of all ranges, with no minimal funding quantity. The platform’s user-friendly cellular app and dedication to investor schooling by way of its participating content material make it a sexy alternative for these trying to embark on their funding journey.
#2 Syfe
Syfe, a relative newcomer to the robo advisory panorama, has shortly made a reputation for itself since its launch in 2019. The platform’s enchantment lies in its distinctive funding methods, which cater to numerous threat appetites.
Syfe affords three core portfolios: International ARI, REIT+, and Equity100. The International ARI portfolio gives publicity to a various vary of asset courses, whereas REIT+ focuses on high-quality actual property funding trusts. For traders with the next threat tolerance, the Equity100 portfolio affords 100% fairness publicity.
Syfe’s standout characteristic is its Danger Defend, a threat administration instrument that goals to guard portfolios throughout market downturns. Moreover, the platform’s complete monetary planning service, Syfe Plan, takes a holistic strategy to wealth administration, setting it aside from its rivals.
#3 Endowus
Endowus, established in 2019, has carved a distinct segment for itself by specializing in offering low-cost, globally diversified funding portfolios. The platform affords a spread of portfolios, together with Money Good, Fund Good, and Endowment Plan portfolios, every designed to fulfill particular funding goals.
At a time when VCs had been pulling again from placing funds in funding corporations, Endowus raised one other US$35 million with new traders, together with Citi Ventures and MUFG Innovation Companions, bringing the corporate’s complete raised thus far to US$95 million. This showcased the continued curiosity in Endowus’ mannequin, which included just lately providing its versatile short-term money administration service, Endowus CashUp Portfolios, for Hong Kong traders.
Endowus differentiates itself with its namesake Endowment Plan portfolio, which helps mother and father save for his or her kids’s schooling, providing a wise resolution for long-term monetary planning. The platform’s Systematic Funding Plan (SIP) characteristic permits traders to automate their investments, making common contributions to their portfolios easy.
#4 AutoWealth
AutoWealth, one of many pioneering robo advisors in Singapore, has been making waves since its institution in 2015. The platform affords globally diversified portfolios invested in low-cost Alternate Traded Funds (ETFs), offering traders with publicity to a broad vary of asset courses.
AutoWealth’s personalised threat evaluation ensures that traders are matched with portfolios that align with their threat tolerance and funding objectives. The platform’s standout characteristic is its no-lock-in interval and absence of withdrawal charges, giving traders the pliability to entry their funds each time wanted.
#5 DBS digiPortfolio
DBS Financial institution, a well-established identify within the Singapore monetary trade, launched its robo advisory providing, digiPortfolio, in 2019. Leveraging the financial institution’s intensive monetary experience, digiPortfolio affords two portfolio varieties: Asia Portfolio and International Portfolio, permitting traders to give attention to completely different geographical areas.
With a low minimal funding quantity of S$1,000, digiPortfolio makes investing accessible to a variety of people. In March 2023, DBS launched with JP Morgan Asset Administration the DBS Retirement digiPortfolio, which routinely adjusts asset allocation primarily based on a person’s life stage and retirement timeline — together with automation to regulate asset circulate to fulfill retirement earnings wants.
The platform’s seamless integration with DBS/POSB on-line banking platforms affords unparalleled comfort for current clients, streamlining the funding course of.
#6 OCBC RoboInvest
OCBC Financial institution, one other main participant within the Singapore banking sector, launched RoboInvest in 2018, combining the financial institution’s funding experience with cutting-edge know-how. RoboInvest affords a formidable 28 thematic portfolios throughout six threat ranges, catering to a various vary of funding preferences.
The platform’s distinctive characteristic guides traders in choosing probably the most appropriate portfolio primarily based on their threat profile and funding goals, significantly helpful for people to spend money on diversified portfolios. With a low minimal funding of S$100 and charging between 1% (AUM as much as S$50,000) and 1.5% (AUM greater than S$50,000), RoboInvest makes it simple for anybody to begin their funding journey.
#7 Phillip SMART Portfolio
Phillip Securities, a well-respected identify within the monetary companies trade, developed the SMART Portfolio robo advisor, drawing on the agency’s intensive analysis capabilities. The platform affords 5 portfolio varieties primarily based on completely different threat ranges and funding goals, making certain that traders can discover a portfolio that aligns with their wants.
SMART Portfolio’s ‘Rebalancing Simulator’ instrument units it aside from its rivals, permitting traders to know the influence of market fluctuations on their portfolios. With a aggressive annual administration charge starting from 0.5% to 0.88%, relying on the portfolio, SMART Portfolio affords an economical funding resolution.
#8 UOB UTrade Robo
United Abroad Financial institution (UOB) entered the robo advisory area in 2018 with the launch of UTrade Robo, leveraging the financial institution’s funding experience to supply a complete digital funding resolution. The platform affords three portfolio varieties: Lively, Passive, and ESG (Environmental, Social, and Governance) investing, catering to a spread of funding preferences.
UTrade Robo’s user-friendly cellular app makes portfolio monitoring and administration a breeze. The platform’s ESG investing choice is its standout characteristic, catering to the rising variety of socially accountable traders who search to align their investments with their values.
#9 Kristal.AI
Kristal.AI, based in 2016, affords a novel hybrid strategy to robo advisory, combining the ability of synthetic intelligence with human experience. The platform gives a variety of funding methods, together with thematic portfolios and customisable portfolios, giving traders the pliability to tailor their investments to their particular wants.
Kristal.AI’s ‘Kristal Funding Account’ permits traders to carry a number of asset courses inside a single account, streamlining the funding course of. As its identify implies, the platform’s AI-powered personalised insights and proposals was what made Kristal.AI distinctive, offering traders with helpful steerage to optimise their portfolios.
#10 SqSave
Previously often known as SquirrelSave, SqSave was established in 2017 and is a recognized digital funding platform in Singapore, recognised for its user-friendly platform that permits traders to begin small and develop their investments over time. Like with many more moderen robo advisors, SqSave utilises synthetic intelligence to design and handle funding portfolios with out human bias, working around the clock.
The AI manages and rebalances funding portfolios routinely to focus on larger predicted returns matched to the person’s chosen threat degree. Traders can begin with any quantity, with no lock-up interval, making it accessible to a variety of traders.
The platform says it prioritises threat administration earlier than chasing returns, making certain that the funding technique aligns with the investor’s threat urge for food. As for what makes SqSave a sexy choice for each novice and skilled traders in Singapore, the AI routinely seeks the portfolio with the best predicted return for the danger degree the investor is comfy with — minimising dangerous returns and investor regret.
With a various array of platforms providing personalised funding recommendation, low-cost portfolios, and revolutionary options, Singaporeans now have extra choices than ever earlier than to develop their wealth. From StashAway’s ERAA framework to Syfe’s Danger Defend and Endowus’ Endowment Plan portfolio, every robo advisor brings one thing distinctive to the desk.
Because the robo advisory panorama turns into more and more aggressive, one factor stays clear: the way forward for investing in Singapore is digital, and robo advisors will undoubtedly play a pivotal function in shaping this thrilling new period of finance.
Featured picture credit score: Edited from Freepik
