There has been a ton of news surrounding Robo-Advisors in Singapore recently. This article serves to be a simple and accurate introduction to what this means and includes a detailed comparison between the 3 main players in the Singapore market. (as of 21 August 2017)
What is a Robo-Advisor?
In the past, mutual fund managers basically pulled together funds and charged a hefty 2-3% management fee for trying to beat the market. The fees usually eat into returns in the long run and thus the ones who benefited ultimately were the fund managers. Robo-Advisors aim to change that.
The Promise: Low-cost Diversified Passive Investing Low Cost: Usually 0.5% to 1% fees are charged for total amount managed (because they are run by models and algorithms behind instead of fund managers, hence the word ‘Robo’) Diversified: Usually put into a basket of Global Exchange Traded Funds (ETFs) which exposes the fund to ......