Robo-Investing, YES or NO?

DISCLAIMER (PLEASE READ THIS BEFORE YOU SCROLL DOWN TO THE MAIN CONTENT)

This post here does not serve as an investment advice, and is not a recommendation to buy or sell. Please do your own homework before starting any form of investment. Use the content at your own risk. I do not own the pictures and screenshots taken from different source of website, and the illustration attached are purely for education purpose.

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Should I do robo-investing?

Fact 1: Your money will be managed by robo-investment firm.

Alll you need to do is to topup your platform account with money. It can be good for Dollar-cost-averaging, if you are not skilled/ have the knowledge to manage your own money. On the other hand, you lose the opportunity to do your investing manually.

Fact 2: Returns are often in an estimated range close to market.

This reason is simply because the purpose of Robo-investing platform, is to track the market performace, as closely as possible. As a result, it will not necessarily beat the market performance. If you are okay with the returns, robo-investing is the way for you. If you are hungry for higher annual returns, or you want to earn more than what the benchmark can give you, then robo-investing in the long run is not the best way

Fact 3: Most (not all) robo-investing platforms are regulated by government organisations (e.g. MAS).

Robo advisors are required to be licensed under the Securities and Futures Act (SFA) and/or Financial Advisers Act (FAA). So some sense of security here for you: that your money will not disappear in thin air if you choose the platform wisely!

Fact 4: Different robo-investing platform has different strength and weaknesses.

Some platform provides better allocation on REITS, some provide better performance in US equities. Different platforms also have different referral system bonuses to be earned. Besides, other factors to be considered are like: fees, returns, liquidity, security, transparancy.

In the end of the day, there is no one-size-fits-all solution. All you have to do, is to pick the one that’s suitable for you, be discipline and follow the rules you set for yourself.

Stay motivated, be inspired.