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An Introduction to RoboAdvisors – Stashaway (Part I)
By SG Finance Guy  •  January 1, 2020
Introduction Traditionally, funds investments were split into passive and active funds. Passive funds were assets like your Straits Times Index ETF, which aimed to replicate the performance of the market, while active funds were managed by actual brokers, which aimed to exploit profitable conditions and beat the market. As active funds were managed actively by brokers, commission fees were higher, investments were risker for larger dividend yields, but yet did not guarantee a higher rate of return as it is difficult to outperform investment benchmark indexes. A couple of years ago, we had a new player coming into the funds investment scene, known as RoboAdvisors. RoboAdvisors are considered a passive fund managed by human-machine hybrids with minimal human interference, and utilises algorithms which are capable of adjusting asset allocation in accordance to different economic regimes. To put it simply, a robot manages your asset for you, hence the name RoboAdvisors....
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By SG Finance Guy
Just a little about myself, I am currently a law undergraduate. I am very passionate about lifelong investing to reach my goal of financial independence. I am quite passionate about ETF investing and am looking at an investment horizon of more than 20 years. So, be prepared to see more upcoming posts about ETFs!
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