We rely on technology to streamline many of the daily activities in our lives – of knowing exactly when the bus will arrive in buses to stay in touch with family and friends 24/7 to get our favorite dinner for us in their backyard after a long day at work.
It should also come as no surprise that technology provides the same smart and effective solutions to streamline our long-term investment needs.
Enter the robo-advisors
Robo advisors digital platforms that provide a mechanism for investment and portfolio management solutions for ordinary investors. In essence, the height of its popularity mainly because it takes a lot of the heavy lifting work of investors.
Using complex algorithms, the robo-advisers are able to simplify the process of assessing an individual’s risk, choose a suitable and diversified basket of investments care individual management of the investment portfolio.
This reduces the cases of conflict of interest with a human financial advisor, the potential knowledge gaps that many young and inexperienced or not interested in the investor as well as even outside the stadium by offering access to professional portfolio management through complex algorithms.
Algorithms do not only put investors on equal footing, it also reduces the human intervention in the entire value chain, thus reducing the cost to the investors. That being said, most of the robo advisors still provide good customer service support and hire highly-skilled fund managers, and programmers.
We decided to choose the Singapore-based StashAway learn the easy (or difficult) it is to start, what can we expect in terms of service standards and investment forums. The following is a walkthrough of the procurement process, complete with screenshots attached.
Open an account StashAway
StashAway was founded in the year 2016 and operate under the Monetary Authority of Singapore Capital Market Services license (CMS100604-1).
Robo advisory platform uses a proprietary investment strategy based on the theory of economic cycles and the economic system based on the distribution of assets, or ERAATM. This allows him to monitor the trends of economic evaluations to re-balance their clients asset allocation over the long term.
StashAway charges fees ranging from 0.2% to 0.8% per annum, depending on the amount invested. Currently, StashAway gives 50% of the management fees for 6 months for up to $ 50,000 in value of the portfolio. You can sign up here after reading these detailed instructions.
People in StashAway has built a personal subscription page DollarsAndSense readers. Here you can read more about StashAway investment methodology unique features and gain useful insights into the past, as well as get access to exclusive subscription privileges.
I went to the front to “start”. First you must fill out some personal information about myself. Many platforms require such information, moreover, robo-advisors algorithms need this to do its job to assess my risks and to recommend suitable investment basket for me.
He even highlights this in the bottom of the screen.
Then he asked me if we want to invest for the purpose of life. This was a natural choice, as I think we should always try to save the goal in life. If you’re not sure you can hit this option to look at some of the life goals you choose to start investing. Otherwise, hit “General Investment” is fine, as you’ll still be able to change this option later.