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Robo-advisory platforms are becoming a popular investment vehicle in Singapore. Robo-advisors use algorithms to determine your investment portfolio allocation, eliminating a large part of human emotions that could come into play. Not only do they offer investment options at low fees, they are also easy to set up.
AutoWealth is a robo-advisory platform that started in 2015.They take a passive investment approach, placing strong emphasis on portfolio allocation and diversification.
AutoWealth has a minimum investment sum of $3,000. While not every robo-advisor has a minimum investment requirement, $3,000 is a reasonable starting amount even for young working adults.
The entire process of setting up an AutoWealth account and getting my investment portfolio live took a few days. After investing with AutoWealth for awhile now, here’s what I like about investing with this robo-advisor.
Straightforward Fee Structure
AutoWealth charges two types of fees.
#1 Management fee of 0.5% per annum. AutoWealth charges this same 0.5% p.a. management fee across different portfolio sizes.
Some robo-advisors charge different management fees for different portfolio sizes and it is possible to invest with a robo-advisor that gives me lower fees for my portfolio size.
However, it is reassuring to know that as I add on to my portfolio, this 0.5% management fee does not change. This saves me the trouble of having to relook at which robo-advisor would give me the lowest fees when my portfolio size changes in the future.
#2 Platform fee of USD18 per annum, regardless of investment amount. This platform fee covers all custody fees and transaction fees that result from managing my investments. This means that no matter how many times my portfolio is rebalanced and how many times I make deposits and withdrawals, I pay the same USD18 a year.
It is possible that the total fees incurred from my transactions will be less than USD18, which means I am paying more than what I would if these fees were charged every time it was carried out. However, having a flat USD18 gives me the assurance that I know exactly how much I will be paying in fees a year.
Ability To Set Up A Regular Investment Plan
Investors investing with AutoWealth 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 was fairly straightforward. It involved setting up a standing instruction to transfer a regular sum of money from my bank account into my AutoWealth account every month.
This is where the USD18 platform fee is reassuring. As I add to my portfolio every month, I don’t have to worry about additional fees being incurred every time money is transferred into my account or when my portfolio is rebalanced.
Personalised Service And Advice
Everything with regards to my investment portfolio is done online and I can log in to my account anytime to check on the current status of my investments. While I like that everything can be set up independently from the comfort of my home, it is nice to know someone from the company that I can reach out to.
Within the day of having my portfolio up and ready, I was contacted by my assigned Wealth Manager from AutoWealth.
While robo-advisors are meant to eliminate the component of human emotions when handling investments, having a Wealth Manager provides some form of human touch. It’s someoneI know I can reach out to on WhatsApp if I have any queries or issues with my account.
Using the AutoWealth platform has been a smooth and enjoyable experience. The platform is generally very user-friendly and easy to navigate. Besides providing an overview of the portfolio’s performance, I also get to see in detail what’s currently in my portfolio and how it’s doing. Some of the things I take a look at when I log in:
Portfolio performance: I get to see how much is in my portfolio currently and how well my portfolio is doing.
Current portfolio allocation: The platform shows the portfolio breakdown clearly. This allows me to see what asset classes and markets my investments are in and how well these individual assets are performing.
Progress towards goal: When setting up the AutoWealth account, I was required to set a target for myself. The platform shows my investment progress and how near (or far) I am from my goal.
The platform also offers flexibility to make adjustments. Adjustments can be made to my goals, portfolio risk level and regular investment plan anytime. I 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.