I have a strong passion for cryptocurrency and investments. I have over 3 years worth of experience in it. I am not a financial advisor.
There is no guaranteed way to profit from investing!
Before diving deep into the details, let me first put it up here that irregardless of which expert you are speaking to or learning from, there are no guaranteed ways for you to profit from investing. Especially if you do not do your own due diligence.
New Method Of Investing
Don’t get me wrong, there is really no harm in investing using either one of the approaches specified. The traditional approach typically involves a deeper understanding of investment in order to not lose to the market. For some, this alone could be a barrier that prevents them from ever starting to invest.
1. Reading Market Charts
You’d need to learn and understand how to read the financial charts. There are plenty of resources online that you can refer to for this. Being able to read the stock market is crucial in ensuring that you are able to more accurately project when is the best time to enter or leave the market.
Without this knowledge, you’d just be depending on word of mouth or luck to prevent you from making losses In the market. Similarly, you may not be able to maximise the profits if you are not able to understand the true meaning behind the charts.
2. Analysing Trends and Patterns
Another crucial knowledge that you will need is the ability to analyse the market trends and the patterns. Just from the charts alone, you will be able to identify certain patterns which will be able to help you make a better judgement of your next move.
Analysing trends does not only involve the charts, it also involves the current trend of that particular industry. Whether that industry or company is doing well or they are not doing well. All these will have to be researched and understood by you as the investor in order to prevent any major losses and to maximise your gains.
3. Which platform to invest with?
This is another factor to consider when you are new to investing. Almost every platform out there will take in some fees with your trades. The question to ask is, how much fees these platforms are taking. Some take in higher fees whereas others can take in significantly lower fees.
Robo Advisors have been around for a few years now and they aim to lower the barrier of entry into investing. There are a few well established Robo Advisors currently available but for this article, I will be focusing mainly on StashAway and Syfe.
Why Robo Advisors?
1. Limited to no knowledge of investments required
One of the key advantages of using Robo Advisors is the limited to no knowlegde of investments that‘s required. You can literally be a regular joe with no finance background and yet you will be able to safely invest without much fear or uncertainty.
This is because Robo Advisors will plan a portfolio for you based on your profile. With StashAway, you will also be able to adjust your risk appetite.
2. Easy Setup and Risk Index
Robo Advisors are just plain simple to use. You simply register for an account, select your investment goals and customise your risk index. That’s all there is to it.
Well, of course you would have to deposit in the funds. This typically takes 3 - 5 business days for the funds to be reflected in the app. Another 1 - 3 business days is required for them to start investing your funds.
In the case of StashAway you are able to customise how much risk you are willing to take. It ranges from 16% - 36%. What do these percentages mean?
It’s quite simple really. Whatever risk percentage you have selected, it simply means that at any one time, you should not lose more than the specified percentage based on your initial deposit in a year.
For example, if I were to deposit $1,000 and selected 36% as my risk index. In a year there is a 99% probability that I will lose not more than 36% of my asset portfolio value.
In other words, there is a 99% chance that I will not lose more than $360 of my asset portfolio value.
Do take note that higher risk does not equate to higher profits.
Differences Between StashAway and Syfe
0.2% - 0.8%
0.4% - 0.65%
Using live and historical data to monitor the market condition
Automate Risk-managed Investments (ARI) - Combination of Global Market Portfolio (GMP) and Risk Parity Portfolio (RP)
REIT | S-REIT | Equity100 (ETF)
My 1 Month Performance For StashAway And Syfe
I have been investing with both platforms for about a month now and have some preliminary results.
My initial deposit for both platforms are slightly different so bear with me. Please do take note that all prices quoted here are in SGD.
General Investing (36%) | Retirement Investing (36%)
Initial Deposit: $1,266
Current Value: $1,292.95
Total Returns: $26.95
Equity100 | 100% REIT
Initial Deposit: $600
Current Value: $597.79
Total Returns: -$2.21
As of now, we are still too early in the game to make any conclusive statements. I will progressively update every month to show the returns.
Grow Your Wealth Early
Which Robo Advisor Is For You?
Now the question is, which Robo Adivsor is suitable for you?
Well, as we speak, I do not have any clear victor as I am still too early in the game to make any conclusive finds.
If you are new to this and are planning to not invest more than $25,000, then Syfe would be better due to lower fees at 0.65% compared to StashAway 0.8%.
In terms of the overall user experience, I will have to say that StashAway gives off a more friendly and polished user experience. Well, it has been in the market far longer than Syfe anyway.
Ultimately, it is still your decision which Robo Advisor will be suitable for you. Stay tuned for month 2 updates.
With that being said, if you are looking to give either Syfe or StashAway a try, please use my referral link / code below and we will both benefit from it.
If you enjoyed my article, feel free to buy me a cup of coffee!
StashAway is Singapore’s intelligent, automated digital wealth manager that personalises, rebalances, and optimises your portfolio so you can reach your goals.
Syfe Referral Code
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2021 Muhammad Shairazi