Using tried and tested algorithms, robo-advisors like AutoWealth customize client portfolios and invest for them in different markets depending on their investment goals and risk appetite. Robo-advisors rebalance these portfolios regularly to keep them in line with the purpose of the investment.
AutoWealth takes a passive market returns portfolio allocation and diversification approach to automate your investment for maximum returns without market speculation.
What Is AutoWealth?
AutoWealth is a regional robo-advisor based in Singapore. It was launched in 2015 by Ow Tai Zhi, a former GIC investment banker, to provide investors with more wealth and time. AutoWealth was certified by MAS (Monetary Authority of Singapore), making it a licensed financial product that invests your money, generating substantially higher returns at lower fees.
AutoWealth offers tailored investment services to investors with a minimum initial deposit of $3,000. The robo-advisor automates investing, allowing you to skip costly middlemen while bringing you good returns at low fees.
AutoWealth portfolio allocations include equity (individual stocks) and fixed income (government bonds) across four major regions; Europe, U.S., APAC, and Emerging Markets. AutoWealth uses an index-tracking approach that consistently provides significant investment returns, effectively outperforming actively managed unit trusts.
How It Works?
Robo-advisors are gaining preference over traditional financial services in the investment world. They are convenient, making them accessible from anywhere and easy to use, simplifying the whole process of investing, and helping us build a globally diversified portfolio.
AutoWealth uses a simple investment strategy of market tracking. The strategy leverages the diversification of investor portfolios across major geographical regions, asset classes, and industries by index-tracking ETFs.
This technique shields investors from market volatility even when there are significant dips. You need a minimum deposit of $3,000 in your account to start investing with AutoWealth. However, a minimum investment is not necessary for subsequent top-ups.
- Offers investments in ETFs (Electronic Traded Funds).
- Minimum investment amount of $3,000.
- Management fee of 0.5% + USD $18 annual management platform fee.
- Funding is only by cash.
- Personal custodian account.
- Dedicated wealth manager.
- Index-tracking investment approach.
AutoWealth benefits include:
- Fixed non-tiered fee structure.
- Better investment returns through AutoWealth’s “passive strategy” of pure market returns.
- Diverse portfolios to invest in.
- Less time managing your investment with AutoWealth algorithms monitoring your portfolios round the clock.
- Team of professional wealth managers with 30 years of collective financial experience.
- A fine balance of technology and human touch through personal wealth manager.
- Consistency with the platform and a personal wealth manager.
AutoWealth Pros and Cons
1. Personal Custodian Account
One of the best things about AutoWealth is that they give you a personal custodian account under your name. A personal custodian account ensures that all assets are still in your power in cases of the company going bankrupt, closing down, or if there is a dispute.
Other robo-advisor platforms provide custodian accounts, but the accounts are shared between investors. With AutoWealth, all client assets are held in legally segregated accounts through Saxo Markets, their partnering custodian.
2. Personal Wealth Manager
Although robo-advisors are automated, and the algorithms make all investments, AutoWealth ensures that each one of its clients gets a dedicated wealth manager assigned to them. They offer financial advice and can give you helpful information about your assets or how to manage risks in your investments.
A personal wealth manager provides investors with a human connection in case of questions or concerns about the account. Shortly after opening your account, your assigned wealth manager contacts you. You can talk to them whenever you need them through WhatsApp.
3. Fixed Management Fees
With AutoWealth, the fees are fixed and non-tiered, unlike with their competitors, whose fees depend on each investment amount.
AutoWealth has a fixed charge of 0.5% of your assets and an annual management platform fee of $18. You do not have to worry about paying additional fees for buying, selling, withdrawing, or rebalancing.
4. Monthly/Quarterly Investment Plan
AutoWealth offers clients a flexible recurring plan of investing monthly or quarterly. It operates like a regular shares savings plan.
The process is simple. All you do is set up a recurring standing instruction to have a certain amount transferred from your bank account to your AutoWealth account every month.
The process makes good use of the platform fees because there is no additional charge for these monthly transfers or when the accounts are rebalanced.
5. Easy-to-Use Platform
AutoWealth has a clean interface that is easy to use and navigate. You can easily see your portfolio’s performance and investment progress.
The platform allows flexibility, and you can change your investment goals, risk tolerance, regular investment plans, and make withdrawals whenever you need to.
6. Financial Advisory Projection
AutoWealth has an advisory projection module with financial tips for factors like risk assessment. You can use it for the financial planning of your investment goals.
1. High Minimum Requirement
AutoWealth is for investors with cash amounting to at least $3,000 for their initial investment. This high minimum investment is a barrier to investors, especially new investors who have limited capital, to begin with.
The minimum is high when we compare it to robo-advisors without any minimum investment like StashAway, where you can invest as low as a dollar.
Related Article: AutoWealth vs StashAway
2. No SRS or CPF Funding Options
AutoWealth has only a cash option for investing. That can limit investors with no ready cash who could have used other means like their CPF or SRS funds to invest.
- A wide number of portfolios with more than 8,000 stocks and 600 bonds.
- Customized profile and investment portfolio according to your investment needs.
- Portfolios cover various asset classes, industries, and the four major geographical regions.
- Assets are held in legally segregated custodian accounts at Saxo Capital Markets under each client’s name.
- Portfolios are a mix of equity and fixed income ETFs.
To understand more on the topic, find out here in robo investing in Singapore.
Comparison Table: AutoWealth Vs. Competitors
The robo-advisor market is highly competitive, and each platform is trying to offer investors a product that gives it an edge over other robo-advisors. Let’s see how AutoWealth fairs in this comparison table:
|Underlying Asset||ETFs||Mutual Funds||ETFs||ETFs|
|Management Fees (Per Annum)||0.5% + USD $18 platform fee||0.60% for the first $20,000
0.40% flat fee for any amount for CPF or SRS funds
|0.8% for the first $25,000||0.65% for sum invested of less than $20,000|
|Minimum Investment Amount||$3,000||$1,000||No minimum amount (Only $10,000 required for income portfolio)||No minimum amount|
|Cash, CPF, or SRS||Cash||Cash, CPF, and SRS||Cash and SRS||Cash and SRS|
How to Invest in AutoWealth
To invest in AutoWealth, you can open an account online or meet with a financial advisor for financial consultation and risk assessment. AutoWealth is one of the robo-advisors that have a minimum investment requirement.
Set at a $3,000 minimum investment, this amount is still reasonable enough for young working-class adults ready to begin investing for their various financial aspirations. It can take a few days to set up an AutoWealth account and get your investment portfolio.
Here are simple steps to follow:
Share your investment goal. It can be anything from buying a new car to clearing your home loan. Fill in your details, investment information, and risk profiles to give the algorithm a better understanding of your investment needs.
Decide the initial investment you want to start with and set a recurring monthly investment amount. (Do not worry about this, you can adjust it later after setting up your account).
The first page will show you the first part of your recommended investment portfolio. This part contains the allocation for bonds and equities and projected annual returns.
The next page will show you the second part of your recommended investment portfolio. This part contains your projected portfolio value.
There are two options to pick from; a portfolio with a higher initial lumpsum investment and no recurring monthly investments or one with a lower initial lumpsum and recurring monthly investments.
Choose your preferred method of opening the investment account. You can either:
- Open an account online.
- Book a consultation, then open your investment account.
- Request for a financial consultation.
To open your AutoWealth account online, you must fill in personal details like your address, employment details, and financial information. You will then put the full name of your referrer, if you have one, on the next page. Then click ‘submit’ to submit your application.
You will receive an email with your AutoWealth account details, password, and the next steps. Follow the steps to verify your identity:
- Transfer $0.01 to AutoWealth.
- Send required documents like photos of the front and back of your NRIC.
Open the second email from AutoWealth Client Services. It directs you to a Saxo Capital Markets Individual Client Application form that has already been prefilled. Check the required boxes to complete.
You will receive an email with the signed document. Log in to your AutoWealth account. Your investment portfolio should be in construction status.
After approval, you should put money in your account within two weeks. Select a way to fund the investment account. Funds will be going to SAXO CAPITAL MARKETS PTE. LTD.
You can choose to deposit your funds in USD or SGD through:
- Bank transfer.
- FAST transfer.
- Telegraphic transfer.
When you fund your investment account, your portfolio is prepared and goes live within two business days. Start investing with your AutoWealth account!
- Age: To Invest in AutoWealth, you have to be 18 years old. All Singapore citizens, permanent residents, and foreigners are eligible for AutoWealth whether they currently live in Singapore or overseas.
- Citizenship: U.S. citizens, U.S. residents, and China residents are not eligible for AutoWealth. Singapore citizens and permanent residents must provide the Front and back of NRIC, while foreigners must provide a valid passport and proof of residence.
- Account balance: The other main eligibility requirement is a $3,000 minimum balance in your account. AutoWealth provides clients with a Compliance certification letter if they need it for compliance pre-clearance with their financial institution for personal investments.
Who Can Maximize AutoWealth?
AutoWealth may have a considerable entry barrier, but it still has attractive features for you as an investor. It is an excellent robo-advisor for you if you want a personal custodian account and have a $3,000 minimum in cash to invest.
If you want to grow a small to a moderate-sized investment portfolio that is above $3,000 but below $1 million, AutoWealth will work out for you. Also, if you prefer a human touch in your online operations, AutoWealth is your best choice.
Related article : regular savings plan
AutoWealth can help you grow your assets and maximize your time. This robo-advisor uses a straightforward market tracking investment strategy providing clients with diversified portfolios across different regions, asset classes, and industries.
- AutoWealth offers dedicated human wealth managers for each client.
- Assets are held under your ownership through Saxo Markets.
- Transparency in pricing and a fixed fee structure for all investment amounts.
- A minimum account balance of $3,000 is required.
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