Robo advisors have emerged as a game-changer in Singapore, transforming the way Singaporeans approach investment and wealth management. These digital platforms harness the power of algorithms and cutting-edge technology to provide personalised investment advice and portfolio management services, making investing more accessible and cost-effective than ever before. (fintechnews.sg)
In a nation renowned for its high savings rate and growing interest in financial planning, robo advisors have quickly gained traction, offering a compelling solution for individuals seeking to optimise their wealth. The adoption of robo advisors in Singapore has seen significant growth, to the extent the assets under management (AUM) in the robo-advisors market in Singapore is projected to reach nearly US$1.49 billion in 2024.
In fact, Statista Market Insights expects the average AUM to be around US$12.46 million per user this year, and forecasts that the number of robo advisory users in Singapore will shoot up to 13.77 million by 2028. But with a growing user base comes increasing competition, and a digital investment platform that offers differentiated products but still solves client investment headaches is likely to be in demand.
In the best scenarios, a good robo advisor in Singapore should boast a user-friendly interface, transparent fee structure, diverse investment options, and robust security measures to safeguard clients’ assets. Moreover, the ability to customise portfolios based on individual risk tolerance and financial goals, coupled with educational resources and transparent communication, sets the best robo advisors apart in the competitive Singapore market.
As the fast-growing industry continues to evolve, driven by advancements in technology and changing investor needs, it will be increasingly crucial for individuals to carefully evaluate their options and choose a robo advisor that aligns with their financial goals, risk tolerance, and values. To help guide decision-making, here are 10 robo advisors presently operating, and what differentiates them in the Singapore market.
#1 StashAway
StashAway, a trailblazer in the Singapore robo advisory scene since its inception in 2016, swiftly rose to prominence and has since become a recognisable mainstay.
The platform’s unique selling point lies in its personalised investment approach, which utilises the Economic Regime-based Asset Allocation (ERAA) framework. This innovative methodology takes into account global economic trends and market conditions to optimise portfolio performance.
StashAway offers a wide array of globally diversified portfolios, catering to investors of all levels, with no minimum investment amount. The platform’s user-friendly mobile app and commitment to investor education through its engaging content make it an attractive choice for those looking to embark on their investment journey.
#2 Syfe
Syfe, a relative newcomer to the robo advisory landscape, has quickly made a name for itself since its launch in 2019. The platform’s appeal lies in its distinctive investment strategies, which cater to various risk appetites.
Syfe offers three core portfolios: Global ARI, REIT+, and Equity100. The Global ARI portfolio provides exposure to a diverse range of asset classes, while REIT+ focuses on high-quality real estate investment trusts. For investors with a higher risk tolerance, the Equity100 portfolio offers 100% equity exposure.
Syfe’s standout feature is its Risk Shield, a risk management tool that aims to protect portfolios during market downturns. Additionally, the platform’s comprehensive financial planning service, Syfe Plan, takes a holistic approach to wealth management, setting it apart from its competitors.
#3 Endowus
Endowus, established in 2019, has carved a niche for itself by focusing on providing low-cost, globally diversified investment portfolios. The platform offers a range of portfolios, including Cash Smart, Fund Smart, and Endowment Plan portfolios, each designed to meet specific investment objectives.
At a time when VCs were pulling back from putting funds in investment companies, Endowus raised another US$35 million with new investors, including Citi Ventures and MUFG Innovation Partners, bringing the company’s total raised so far to US$95 million. This showcased the continued interest in Endowus’ model, which included recently offering its flexible short-term cash management service, Endowus CashUp Portfolios, for Hong Kong investors.
Endowus differentiates itself with its namesake Endowment Plan portfolio, which helps parents save for their children’s education, offering a smart solution for long-term financial planning. The platform’s Systematic Investment Plan (SIP) feature allows investors to automate their investments, making regular contributions to their portfolios effortless.
#4 AutoWealth
AutoWealth, one of the pioneering robo advisors in Singapore, has been making waves since its establishment in 2015. The platform offers globally diversified portfolios invested in low-cost Exchange Traded Funds (ETFs), providing investors with exposure to a broad range of asset classes.
AutoWealth’s personalised risk assessment ensures that investors are matched with portfolios that align with their risk tolerance and investment goals. The platform’s standout feature is its no-lock-in period and absence of withdrawal fees, giving investors the flexibility to access their funds whenever needed.
#5 DBS digiPortfolio
DBS Bank, a well-established name in the Singapore financial industry, launched its robo advisory offering, digiPortfolio, in 2019. Leveraging the bank’s extensive financial expertise, digiPortfolio offers two portfolio types: Asia Portfolio and Global Portfolio, allowing investors to focus on different geographical regions.
With a low minimum investment amount of S$1,000, digiPortfolio makes investing accessible to a wide range of individuals. In March 2023, DBS introduced with JP Morgan Asset Management the DBS Retirement digiPortfolio, which automatically adjusts asset allocation based on an individual’s life stage and retirement timeline — including automation to adjust asset flow to meet retirement income needs.
The platform’s seamless integration with DBS/POSB online banking platforms offers unparalleled convenience for existing customers, streamlining the investment process.
#6 OCBC RoboInvest
OCBC Bank, another major player in the Singapore banking sector, introduced RoboInvest in 2018, combining the bank’s investment expertise with cutting-edge technology. RoboInvest offers an impressive 28 thematic portfolios across six risk levels, catering to a diverse range of investment preferences.
The platform’s unique feature guides investors in selecting the most suitable portfolio based on their risk profile and investment objectives, particularly useful for individuals to invest in diversified portfolios. With a low minimum investment of S$100 and charging between 1% (AUM up to S$50,000) and 1.5% (AUM more than S$50,000), RoboInvest makes it easy for anyone to start their investment journey.
#7 Phillip SMART Portfolio
Phillip Securities, a well-respected name in the financial services industry, developed the SMART Portfolio robo advisor, drawing on the firm’s extensive research capabilities. The platform offers five portfolio types based on different risk levels and investment objectives, ensuring that investors can find a portfolio that aligns with their needs.
SMART Portfolio’s ‘Rebalancing Simulator’ tool sets it apart from its competitors, allowing investors to understand the impact of market fluctuations on their portfolios. With a competitive annual management fee ranging from 0.5% to 0.88%, depending on the portfolio, SMART Portfolio offers a cost-effective investment solution.
#8 UOB UTrade Robo
United Overseas Bank (UOB) entered the robo advisory space in 2018 with the launch of UTrade Robo, leveraging the bank’s investment expertise to provide a comprehensive digital investment solution. The platform offers three portfolio types: Active, Passive, and ESG (Environmental, Social, and Governance) investing, catering to a range of investment preferences.
UTrade Robo’s user-friendly mobile app makes portfolio monitoring and management a breeze. The platform’s ESG investing option is its standout feature, catering to the growing number of socially responsible investors who seek to align their investments with their values.
#9 Kristal.AI
Kristal.AI, founded in 2016, offers a unique hybrid approach to robo advisory, combining the power of artificial intelligence with human expertise. The platform provides a wide range of investment strategies, including thematic portfolios and customisable portfolios, giving investors the flexibility to tailor their investments to their specific needs.
Kristal.AI’s ‘Kristal Investment Account’ allows investors to hold multiple asset classes within a single account, streamlining the investment process. As its name implies, the platform’s AI-powered personalised insights and recommendations used to be what made Kristal.AI unique, providing investors with valuable guidance to optimise their portfolios.
#10 SqSave
Formerly known as SquirrelSave, SqSave was established in 2017 and is a known digital investment platform in Singapore, recognised for its user-friendly platform that allows investors to start small and grow their investments over time. Like with many newer robo advisors, SqSave utilises artificial intelligence to design and manage investment portfolios without human bias, operating round the clock.
The AI manages and rebalances investment portfolios automatically to target higher predicted returns matched to the user’s chosen risk level. Investors can start with any amount, with no lock-up period, making it accessible to a wide range of investors.
The platform says it prioritises risk management before chasing returns, ensuring that the investment strategy aligns with the investor’s risk appetite. As for what makes SqSave an attractive option for both novice and experienced investors in Singapore, the AI automatically seeks the portfolio with the highest predicted return for the risk level the investor is comfortable with — minimising risky returns and investor remorse.
With a diverse array of platforms offering personalised investment advice, low-cost portfolios, and innovative features, Singaporeans now have more options than ever before to grow their wealth. From StashAway’s ERAA framework to Syfe’s Risk Shield and Endowus’ Endowment Plan portfolio, each robo advisor brings something unique to the table.
As the robo advisory landscape becomes increasingly competitive, one thing remains clear: the future of investing in Singapore is digital, and robo advisors will undoubtedly play a pivotal role in shaping this exciting new era of finance.
