Do you want to invest with a robo-advisor, but are scared of the risks?
Maybe you are afraid that the robo-advisor you use might close down like Smartly in March 2020.
So, is it really safe to invest in a robo-advisor?
Here’s a breakdown of what happened to Smartly, and what you can do to make sure you invest with the right robo-advisor.
Why did Smartly close down?
The decision to close Smartly down was made by VinaCapital, who bought over Smartly back in 2019. VinaCapital realised that the competition in the robo-advisory industry was too intense. Moreover, the operating costs were increasing.
They were no longer willing to invest money into Smartly just to compete with the other robo-advisors. As such, they decided to shut Smartly down.
This decision was made just 9 months after they acquired Smartly!
Here are the 2 main reasons why I think Smartly closed down: