DBS DigiPortfolio

DBS DigiPortfolio Review: Best For Passive Beginner Investor

DBS’s first robo advisor provides the best investment opportunities with a ready-made investment portfolio and a handpicked investment team. Plus, investors need only low capital and fees to start their semi-automated investment journey. 

However, these great features, plus access to Asian and global portfolios and flexible risk levels, are mired with some minor issues, but even those don’t take away from the overall usability of this robo advisor. Learn more on Robo Investing and how to choose the right one. 

Learn more about DBS’s robo investor in this review.

Key Features of the DBS DigiPortfolio

  • Constructed and regularly monitored by a portfolio management team to align with DBS’ Chief Investment Office’s guidelines
  • Automated back-testing, rebalancing, and monitoring
  • Varied Risk Levels: Slow n’ Steady, Comfy Cruisin’, Fast n’ Furious
  • Asia and global ETF availability
  • A flat management fee of 0.75 p.a. for both Asia and global portfolios

 

Fees and Minimum Investment

Portfolio Type Asia Portfolio (0.75% Per Year) Global Portfolio (0.75% Per Year)
Portfolio Value S $1,000 US$1,000
Management Fee S $7.50 a year US$7.50 a year

 

DBS DigiPortfolio’s management fee is one of the lowest available in Singapore at 0.75% per year, zero additional platform fees, and other miscellaneous fees in particular. However, take note that the Asia and global portfolio management fees are the same at 0.75%, which means that you’ll pay US$7.50 a year for your global portfolio.

 

Asia Portfolio

Asset ETFs
Equity Nikko AM STI ETF, Nikko AM StraitsTrading ex. Japan REIT
Bonds ABF Singapore Bond Index Fund, Nikko AM Investment Grade Corporate Bond ETF

 

DBS Digibank’s Asian portfolio focuses on exchange-traded funds (ETFs), which mix equities and bonds in Singapore, Japan, China, and other major indexes in Southeast Asia. The Nikko AM STI ETF emulates the Straits Times Index (STI), a key index in Singapore Exchange and the economy.

The presence of strong bonds, including ABF Singapore Bond Index Fund and Nikko AM Investment Grade Corporate Bond ETF, balances out the risks depending on which risk level you’re using.

 

Global Portfolio

Asset ETFs
Equity iShares Core S&P 500, Xtrackers MSCI Europe, HSBC MSCI AC Far East Ex. Japan, Vanguard FTSE Japan
Bonds iShares JP Morgan $ EM Bond, iShares Global Corporate Bond, iShares Core Global Aggregate Bond

 

The global portfolio of DBS DigiPortfolio includes the iShares Core range. This is a reliable global index fund that emulates the US S&P500 index. In addition, the global portfolio consists of the HSBC MSCI AC Far East Ex. Japan index for Asia, Xtrackers MSCI Europe, and Vanguard FTSE Japan. 

Corporate bonds also play a role in balancing risks, such as the iShares Core Global Aggregate Fund, iShares Global Corporate Fund, and iShares JP Morgan $ EM Bond, which focuses on emerging markets across the globe. 

 

How Does DBS Portfolio Compare Against Other Robo Advisors

Robo Advisor Annual Fees (In USD) Minimum Investment Amount Platform Fees Markets and Products
DBS DigiPortfolio 0.75% ($75) S $1,000 or US$1,000 None Stocks, Bonds, ETF
AutoWealth 0.5% + US$18 (~$75) S $3,000 S $18 per year Stocks, Bonds, ETF
Stashaway 0.8% ($80) None None Stocks, ETF,

Bond, Commodities

OCBC RoboInvest 0.88% ($88) US$100 None Stocks, ETF, Commodities
Endowus 0.05% – 0.60% S $1,000 None Stocks, ETF
Syfe 0.35% – 0.65% None None Stocks, ETF, Fund, Bond,

Commodities

 

Versus other robo advisors, DBS’s own iteration is one of the most accessible. Its low annual and portfolio management fees are unrivaled among other well-known and popular robo advisors. Syfe is the only one that rivals DBS’ low annual management costs at 0.35-0.65%, but its risk value and financial backing, which DBS easily surpasses, make DBS a better choice for most investors.

 

What We Think of DBS DigiPortfolio

DBS is a well-known bank worldwide as the “safest” bank in Asia, a reputation it upholds in the Singapore economy’s many ups and downs. The DBS DigiPortfolio shows evidence of its strength and financial backing integrity by offering a low S $1,000/US$1,000 entry with a 0.75% annual management fee. This means that it has no portfolio management fee to trouble investors with.

This level of accessibility is aimed at mid to high-income earners in Singapore who wish to have a semi-fixed-income investment on ETFs and access to quality portfolios. 

This robo advisor is a great combination of human expertise that checks the market regularly and robo technology in identifying and using market opportunities for cost-effective investing and management. The only downsides to DBS’s robo advisor are its lack of integration with the DBS multiplier and being a multi-currency account with only two portfolio options available for investors.

Pros

  • Low capital is required at S $1,000 and US$1,000
  • Immediate access to Asian and global portfolios
  • Flexible 1-3 levels of risk

Cons

  • Not integrated with DBS multiplier
  • Only two portfolio options fixed asset classes are available

 

Businessman Looking at Stock Chart

How To Get Started With DBS DigiPortfolio

Here are the steps to get started with the DBS DigiPortfolio

1. Download the DBS DigiBank App

2. Prepare the Following Documents

Singaporeans/PRs:

  • NRIC
  • Local utility bill
  • Local telecommunication bill
  • Local bank statement/credit card statement
  • Letter issued by the government of other public bodies regulated for AML practices in a FATF member country
  • Letter from regulated insurance companies in a FATF member country
  • Letter from school (restricted to official letters from educational institutions or schools under the purview of Council for Private Education or Ministry of Education)

Foreigners:

  • Passport
  • Employment pass
  • Work permit of foreign domestic worker 
  • SGWorkPass App screenshot for foreign domestic worker
  • Letter of offer
  • Letter of employment
  • Latest payslip
  • Local utility bill
  • Local telecommunication bill
  • Local bank statement/credit card statement
  • Letter issued by the government of other public bodies regulated for AML practices in a FATF member country
  • Letter from regulated insurance companies in a FATF member country
  • Acceptance letter from school (restricted to official letters from educational institutions or schools under the purview of Council for Private Education or Ministry of Education)

3. Apply For The DigiPortfolio Using The App

 

FAQs About the DBS DigiPortfolio

1. What’s a Robo Advisor?

A robo advisor is a type of personal financial advisor that uses technology to provide investment advice. A robo advisor typically uses algorithms and computers to invest clients’ money in various financial instruments. 

In the case of the DBS DigiPortfolio, the bank combines human experience and automated technologies to create quality portfolios and make sure they’re aligned to the market.

2. Are Robo Advisors Better Than Their Human Counterparts?

Robo advisors ask for a client’s budget, goals, and other information that a human advisor would need to give them personalized advice. These advisors are helpful to the growing number of people who cannot afford a human advisor and are trying to figure out how to make their financial plans without any help.

3. Will Robo Advisors Be Better Than Normal Passive Investment Portfolios?

Robo advisors have a deeper evaluation of a potential investment than just the dollar amount. A robo advisor will assess the risk level, potential returns, time frame, and other details. A DIY portfolio that remains passively earning high can achieve the same or beyond the robo advisor’s capabilities. However, building such a portfolio takes time, expertise, and professional advice. 

4. Are Robo Advisors Affordable?

Robo advisors are much more affordable than traditional advisors. Robo advisors charge a flat fee for their service, whereas traditional advisors charge a percentage of the assets under management. This is because robo advisors are using technology to provide portfolio management services. They are not using humans to manage the assets, which reduces the cost of doing business. Robo advisors are also cheaper because they are not required to have a physical office.

5. Which is Cheaper, a Robo Advisor or Financial Advisor?

A robo advisor is typically cheaper than a human advisor. There are many advantages to using a robo-advisor instead of a human financial advisor. They are more cost-effective, easier to use, and require less time commitment on the investor’s part.

6. What Are The Best Alternative Robo Advisors in Singapore?

Before DBS DigiPortfolio jumped into the advanced fintech scene, Singaporeans could choose from the following robo advisors.

  • Autowealth

Autowealth is a robo advisor in Singapore, an automated investment service that helps people invest their money efficiently. The company offers investment advice through an algorithm that provides automated, passive investments.

Investors can choose to invest in three different categories: Equities, Fixed Income and Alternatives.

  • Stashaway

StashAway offers a wide range of investment options to suit your needs. For example, you can choose from a range of funds, stocks, bonds, and ETFs., such as those included in StashAway’s Stable Fund, which invests in Singapore Government Securities (GIC), money market funds, and bonds issued by the government or government-related companies. 

You can find many more funds and other unique hassle-free investments that will make it an enjoyable venture for new investors in Singapore.

  • Endowus

Endowus is a Singapore-based robo advisor that is the first in Asia. They offer automated wealth management solutions through their robust algorithms and digital advice.

This program helps investors make better decisions by automating their investment plans with its algorithm’s built-in risk management system. Endowus delivers actionable advice to their clients through investing in low-cost ETFs, which are diversified funds that invest in portfolios of stocks, bonds, commodities, currencies, or other securities.

 

Our Final Thoughts

DBS DigiPortfolio does well against its competitors by blending its experienced investors with the capabilities of new technologies. Investors who are just starting their financial journey will find DBS DigiPortfolio an excellent robo advisor suitable for all their needs.

  • DBS DigiPortfolio is constructed and regularly monitored by a portfolio management team to align with DBS’ Chief Investment Office’s guidelines.
  • It provides automated back-testing, rebalancing, and monitoring of your portfolios for effective growth.
  • Investors also get three risk profiles that have their respective benefits: Slow n’ Steady, Comfy Cruisin’, Fast n’ Furious.

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