Here’s What We Like About Investing With This Robo-Advisor

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Robo-advisory platforms, like AutoWealth, have become a popular way to invest in Singapore. One of the main reasons is that they integrate digital tools to provide greater convenience and simplify the investment process for investors. From the comfort of our home, we can set up our investment account, access customer support, understand our risk assessment and start investing online.

Robo-advisors also develop algorithms to determine our portfolio allocation, eliminating inconsistent (and even self-serving) investment advice that human advisors may provide. These algorithms also enable us to invest in a hassle-free and passive manner. Even without much funds, investment knowledge or time to monitor our investments, we can rely on robo-advisors to help us build a globally diversified portfolio, based on our goals and risk appetite. Our portfolio will also be routinely rebalanced so it remains in line with our investment objectives.

With fewer overheads, we also enjoy a lower fund management fee – growing our portfolio more efficiently.

Read Also: Robo Advisors In Singapore (2024): What You Need To Know Before Investing

How To Invest With AutoWealth?

AutoWealth is an MAS-licenced robo-advisory platform that started in Singapore in 2015. As mentioned, we can open our investment account online, or choose to meet with a financial consultant if we prefer.

AutoWealth Starter portfolio has a minimum investment sum of S$3,000. While not every robo-advisor has a minimum investment requirement, S$3,000 is a reasonable starting amount for young working adults.

The entire process of setting up an AutoWealth account and starting an investment portfolio takes a few days. After investing with AutoWealth for a while now, here are four things we like about investing with this robo-advisor.

Read Also: Robo Advisors in Singapore: What You Need To Know Before Investing

#1 Straightforward Fee Structure

With AutoWealth, there are only two types of charges to take note of, namely the management fee and a platform fee. The specific fee applicable depends on the type of investment products that it offers.

For example, the AutoWealth Starter Portfolio, which invests in a globally diversified portfolio based on our risk level, has a 0.5% annual management fee. Whereas the AutoWealth Flexi Cash, which is a cash management account, has a low 0.1% annual management fee.

These rates are applied to our portfolios regardless of our investment size. This clear structure ensures we do not have to worry about meeting a certain investment amount to enjoy preferential rates. Hence, it allows us to focus on growing our portfolio at our own pace.

The other fee that we may incur is the platform fee of US$18 per year. However, it is only charged for the AutoWealth Starter portfolio. The platform fee is meant to cover all custody and transaction fees incurred in managing our investments instead of charging us per transaction. In other words, it gives us clear visibility of our transaction costs, regardless of how many times we rebalance our portfolio in a year.

Product Investment Strategy Minimum Investment Amount Management Fee Platform Fee
AutoWealth Starter Portfolio A globally diversified portfolio that holds equity and bond ETFs S$3,000 0.5% US$18/Year
AutoWealth Plus A specially curated 100% equity-based thematic portfolio S$10,000 8% fee on profits Nil
AutoWealth Flexi Cash (SGD/USD) A cash management portfolio that invests in U.S treasury bills ETFs S$1,000 0.1% Nil

Read Also: Complete Cost Guide To Robo-Advisor Fees For Singapore Investors

#2 Ability To Set Up A Regular Investment Plan

AutoWealth investors can opt to set up a recurring monthly or quarterly investment plan. This is similar to a regular shares savings plan that allows you to invest from as little as $100 a month.

The process of setting up a recurring monthly investment plan is fairly straightforward. It involves setting up a standing instruction to transfer a regular sum of money from our bank account into our AutoWealth account each month.

This is where the USD18 platform fee is reassuring. As we add to our portfolio every month, we don’t have to worry about incurring additional fees each time money is transferred into our account or when our portfolio is rebalanced.

Read Also: 20 Investment Platforms Singaporeans Can Use To Invest A Fixed Monthly Sum

#3 Personalised Service And Advice

Managing almost every aspect of our portfolio can be done online. In addition, we can simply log in to our account anytime (24/7) to check on the current status and performance of our investments. AutoWealth also assigns us an actual human Wealth Manager who will contact us shortly after opening our investment portfolio.

While robo-advisors are meant to eliminate the component of human emotions when handling investments, it can be reassuring to have a human touchpoint whenever we require it. We can reach out to this person via WhatsApp if we have any queries or issues with our account.

#4 User-Friendly Platform

The AutoWealth platform is user-friendly and easy-to-navigate. Besides providing an overview of our portfolio’s performance, we also get detailed information on our investment portfolio and how it’s doing. Some of the things we can take a look at within our platform include:

  • Portfolio performance: We get to see our portfolio value and performance.
  • Current portfolio allocation: The platform shows our portfolio breakdown clearly. This allows us to view our asset allocation and the markets our investments are exposed to, and how well the individual assets are performing.
  • Progress towards our goal: When setting up the AutoWealth account, we can also set a goal for ourselves. Whenever we log in, we can see our progress, and how near (or far) we are from our initial investment goals.

The platform also offers flexibility to make adjustments. We can adjust our goals, portfolio risk level and regular investment plan anytime. We can also choose to withdraw funds should the need arises.

For those interested in opening an AutoWealth account, read this step-by-step guide for more information on how to get started. DollarsAndSense readers can receive a S$20 top-up into your account when you sign up with AutoWealth using the promo code ‘DollarsAndSense‘ and fund it with the S$3,000 minimum investment amount.

Read Also: Step-By-Step Guide To Opening An AutoWealth Account For New Singapore Investors

This article was first published on 8 May 2019 and has been updated to include the latest pricing information.

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