moneyowl vs endowus

A Detailed MoneyOwl vs Endowus Guide: Which Robo Advisor Suits Your Needs?

Robo advisors have become very popular over the past few years. These investment platforms provide many tools that allow retail investors to easily open accounts online, get prompt customer support and offer investment advice to customers.

Robo-advisors have also evolved to offer different types of services. There are many platforms to choose from, some of which offer almost the same services. An excellent example of these is MoneyOwl and Endowus. These two Robo advisors offer CPF portfolios. It might be hard to know which to choose from the two.

This article will look at the difference between Money Owl and Endowus. At the end of the post, you can choose which Robo advisor matches your needs and make the best investment option.

What are Robo Advisors?

Robo advisors are online platforms that provide automated algorithm-driven financial services with very little to no human interactions. These platforms will ask you to fill in an online survey about your financial situation and your financial goals to come up with a clear plan on what you need to invest your money one.

Robo advisors in Singapore offer portfolio management services, easy account opening, accounting services, and robust goal planning. The best Robo advisors provide their customers with excellent customer support and extensive education at low fees.

Most Robo advisors use passive indexing strategies optimized using modern portfolio theory (MPT) variants. Different Robo advisors also optimized portfolios, including Halal investing, socially responsible investing (SRI), and tactical strategies similar to hedge funds. Some can also handle more sophisticated tasks, including investment selection, retirement planning, and tax-loss harvesting.

 

MoneyOwl vs. Endowus

MoneyOwl and Endowus are both competing for CPF-OS funds. MoneyOwl CPF portfolios are simple and cheap. However, they do not offer exposure to Emerging Market equities. Endowus, on the other hand, offer more diversified exposure to your funds.

Here is a look at how the two Robo-advisors compare:

Digital Wealth Management Service MoneyOwl Endowus
Minimum Investment Amount
  • S$100 (Dimensional)
  • S$1,000 (WiseIncome)
  • S$1,000
Advisory/Management Fees (p.a.)
  • 0.6% (Up to S$100k)
  • 0.5% (Above S$100k)
  • 0.25% – 0.60%
Investment Portfolios
  • Dimensional funds, WiseIncome, CPF Portfolio
  • Core, Satellite, Income, FundSmart (Custom Portfolios)
Minimum Age
  • 18
  • 21
Cash, SRS, CPF Support
  • Cash, SRS, CPF
  • Cash, SRS, CPF

 

MoneyOwl: Best for Investors Who Want to Start Small

MoneyOwl is a social enterprise venture between Providend Holding Private Limited and NTUC Enterprise Co-operative Limited. It is both a fund management company and a financial advisor. MoneyOwl provides a platform where you can invest your money, but it stands out from other Robo advisors since you can invest with the help of a human advisor if you want.

You get to set your portfolio based on your risk profile, and MoneyOwl manages your investment automatically like a typical Robo advisor. It is important to note that MoneyOwl does not invest in ETFs but focuses on Dimensional Fund Advisors. The platform’s low entry barrier makes it ideal for investors who want to start investing small.

How MoneyOwl Works

The platform offers various services, including writing, investments, insurance, and financial planning. Here is a look at how the different services work.

Investments

If you want to invest MoneyOwl, you will soon discover that the process is pretty simple. MoneyOwl has four funds that you can invest in. They are:

  • Dimensional Global Short Fixed Income Fund
  • Dimensional Global Core Equity Fund
  • Dimensional Global Short Fixed Income Fund
  • Dimensional Emerging Market Large Caps Equity Fund

Additionally, four portfolios are available depending on your risk appetite and investment goals. They include:

  • WiseIncome
  • Dimensional
  • WiserSaver (Cash investments)
  • CPF Portfolio

MoneyOwl also rebalances your portfolios every quarter to ensure that your assets remain in line with your risk appetite. Remember that the platform does not rebalance based on market outlook, timing, sector, or stock-picking.

You will need a minimum initial investment of S$100 if you plan to invest your money in a lump sum, but if you plan to invest monthly, you will need a S$50 investment every month.

MoneyOwl Charges and Fees

Here is a summary of the fees and charges you can expect when you start investing with MoneyOwl:

Portfolio Assets Under Management Fees
Platform Fees Advisory Fees Fund Level
Dimensional Up to S$100,000 0% 0.6% 0.25% to 0.27%
Above S$100,000 0.5%
WiseIncome Up to S$100,000 0.6% ~0.4%
Above S$100,000 0.5%
WiseSaver  

Any amount

0% 0.15%
CPF Portfolios 0% until 31 December 2022 ~0.4% to 0.42%

 

Here are the charges to expect with other MoneyOwl services:

  • WiseSaver Fees: No platform fee or advisory fee is charged. However, there is a fund-level fee of 0.15% p.a; charged by your fund manager.
  • Insurance Fees: An admin charge of S$26.75. MoneyOwl returns 50% of the insurance commission fees and keeps the remainder as a service fee.
  • Will Writing: Free of charge

What We Like About MoneyOwl

  • Offers a wide range of cost-effective benefits like a 50% commissions rebate and free will writing.
  • A low initial deposit of S$50 per month and free advisory for the first S10,000.
  • Offer comprehensive financial planning that includes national schemes.
  • Offers a wide range of financial solutions.
  • Offers an investment fund designed to provide retirement income.

What We Don’t Like About MoneyOwl

  • Only four funds available from Dimensional Fund Advisors
  • Low returns from some portfolios like the WiseSaver
  • It excluded individuals from specific tax residencies and nationalities

How to Open a MoneyOwl Account

Opening a MoneyOwl account is pretty straightforward. Here are the step to follow

  1. Go MoneyOwl’s official website and click to “Create Your Account.” Here you will fill in your data and set the password to your account.
  2. Once you log into your account, click ‘Start Investing” and follow the instructions.
  3. You will now need to wait to get approved and start investing your money for financial growth

businessman using tablet to buy stocks

Endowus: Best for SRS, CPF, and Thematic Investing

Endowus is a Robo advisor that lets you invest in Supplementary Retirement Scheme (SRS), CPF funds, and cash savings. Endowus has access to the world’s leading global fund managers who curate investment portfolios at the lowest cost possible.

The platform has six portfolios you can choose from and invest your SRS money, savings, or cash depending on your risk tolerance and investment objectives. Your funds will be invested in globally diversified mutual funds, also known as unit trusts, at very low fees.

Your portfolios will be automatically rebalanced to ensure that it aligns with your goals. Additionally, Endowus offers investment advice where you have the option of setting up a recurring monthly investment. The best part is that all these costs will be bundled together in an all-access fee.

See Also: Syfe vs StashAway vs Endowus

How Endowus Works

Endowus offers investment and cash management portfolio services. Here is how they work:

Investments

Here is a look at the investment you can invest on with Endowus:

1. Endowus Fund Smart: Invest Your Way

The Fund Smart portfolio allows you to build a personalized portfolio. This is a solution that is not offered by most Robo-advisors. Fund Smart gives you access to the best-in-class institutional funds from the top asset managers in the world.

Endowus screens the investment options to make the best available for you. This option does not charge transaction or sales fees and offers 100% trailer fee rebates. Once you select your preferred investment assets, Endowus provides an overview of your assets, including the historical data in the average annual return based on historical data, total yearly fees, and goals projection.

2. Endowus Core Portfolios: Provides Wealth Accumulation Solutions

Endowus offers six different portfolios where you can invest your CPF, SRS or Cash. These portfolios are designed to fit other investment objectives and risk tolerance. You get to invest in globally diversified mutual funds. These portfolios are broken down into percentages of stocks and bonds in them.

Your portfolios are automatically rebalanced to ensure they are always aligned with your goals. Endowus also offers investment advice and can decide to make monthly recurring investments.

3. Endowus ESG Portfolio: Sustainable Investing

ESG is a fast-growing trend in investment all over the world. Endowus launched its ESG portfolio for investors looking for a more sustainable future. This means having an investment that plays an essential role in fostering positive social and environmental impact.

This portfolio comprises the best ESG funds, allowing investors to invest in fixed-income products and equities. Top ESG fund managers handpick them. It also offers 100% trailer fee rebates for investors. The ESG portfolio is also recommended based on your risk tolerance and investment goals. This portfolio is, however, not available for CPF and SRS investing

4. Cash Management Portfolio: Ideal for Growing Idle Cash

Cash Smart is a cash management account you can use to grow your idle funds. You can increase your money in a cash management account rather than keep your money in a high-yield account. The Cash Smart does not have a lock-in period, no limit to the amount you can deposit in your account, or tiers you need to hit.

The Cash Smart account costs 0.5% p.a, excluding fund-level fees. It is also available for your idle SRS funds. Here is a look at the Cash Smart accounts you can choose from:

5. Endowus Cash Smart Secure

This is a diversified portfolio of cash and money market fund. Its underlying funds included 50% LionGlobal SGD and 50% Fullerton SGD Cash Fund. This account has a projected return of 2.4% to 2.7% after all fees.

6. Endowus Cash Smart Enhanced

This is a diversified portfolio of high-quality short-duration bonds and money market funds. Its underlying fund includes 50% LionGlobal SGD Enhanced Liquidity and 50% UOB United SGD Fund. The portfolios have an expected annual return of 3.3% to 3.6%.

7. Endowus Cash Smart Ultra

This diversified portfolio has a short-duration money market and fixed-income funds. It has underlying funds, including 25% Fullerton Short Term Interest Rate Fund, 27.5% LionGlobal SGD Enhanced Liquidity Fund, 12.5% Nikko AM Shenton Income Fund, 25% LionGlobal Short Duration Bond Fund, and 10% PIMCO GIS Low Duration Income Fund. The Cash Smart Ultra has an excepted annual return of 3.8% to 4.1%.

What We Like About Endowus

  • You get access to experienced fund managers otherwise accessible to institutional investors.
  • Charges low access fees that are a third of the industry’s average.
  • Offer cash management accounts to store and grow your cash.
  • You can invest in cash, SRS, and CPF funds.
  • Offers multi-asset portfolios that are customized to your risk tolerance.

What We Don’t Like About Endowus

  • You must be 21 years and older to open an account.
  • A high initial investment amount of S$10,000.
  • You will be required to invest a significant amount in enjoying low fees.

How to Open an Endowus Account

First, you will need to meet the eligibility criteria, which are:

  • Minimum investment amount of S$1,000
  • Be at least 21 years of age

If you want to invest your CPF money with CPFIS, you will need the following:

  • To have more than S$20,000 in your Ordinary Account
  • Ensure that you are an undischarged bankrupt
  • Have more than S$40,000 on your SA

If you meet the above criteria, you can now move forward and open an Endowus account. Here are the steps you will need to follow:

  1. Go to Endowus’ official website.
  2. Open an account, and there are no fees charges.
  3. Set up your investment goals (YOU are not required to invest at this point.
  4. Fill in your personal information to complete the onboarding process. This process will take you an average of 10 minutes.

robo advisor talking to customer

Related Questions (FAQs)

1. What Are the Reasons to Use MoneyOwl?

Low-Cost: Free advisory for the first S$10,000 you have invested with them. The platform also has a low minimum investment of S$50 every month of a lump sum of S$100. This allows investors to start early and build up small.

MoneyOwl is on a social mission to help Singaporeans make informed financial decisions: The platform has the best interest of Singaporeans at heart. They offer different financial services, including insurance and will writing services. The will writing services are free and offer 50% rebates on insurance commissions.

Offers financial planning that integrates Singapore Schemes: MoneyOwl provides investment options for various Singapore Schemes such as SRS and CPF. This offers a holistic approach to financial planning and helps you quickly achieve your financial goals.

Offers a wide range of financial services: MoneyOwl is a one-stop shop for almost all your financial goals. It is a great investment platform for wealth creation and hedges you against inflation.

2. Why Should You Invest with Endowus?

You will have access to leading global funds at a low cost: Endowus allows you access to international funds typically available to institutional investors. It will enable you to access Smart Beta and fixed-income products for seasoned fund managers like PIMCO and Dimensional Fund Advisors at a low cost.

Having access to these funds offers you a higher chance of success when you invest for the long term. You also get to choose investment products with a proven track record.

You can invest your cash, CPF, and SRS in one platform: You can put your CPF money under the CPF Investment Scheme (CPFIS). You will need to link your CPF Investment Account to your Endowus account and start investing your CPF money on Endowus.

The platform offers a low all-access fee: Most investors are more concerned about fees than anything else when investing. This is because fees often eat into your returns. Endowus lumps up all the fees incurred under the all-access fees, which are 0.18% to 0.64%.

It helps grow your spare cash: Banks currently offer an interest rate of 0.5% on your savings. This means you have fewer avenues to grow your idle money or emergency fund. Endowus has the Cash Smart account that allows you to earn up to 3% p.a. on your spare cash without worrying about salary credit and minimum credit card spending.

You get to customize your portfolio: Endowus recently launched the Fund Smart portfolio, allowing you to design your ideal portfolio. It is an excellent platform if you are looking for a Robo-advisor where you can choose the components of your platform.

ESG investing: Endowus offers an ESG portfolio that gives you great returns on your investment while having a positive environmental and social impact. Endowus ESG portfolio is low cost and allows you access to institutional funds.

Endowus is secure: You do not have to worry about what will happen to your funds if Endowus ceases to exist. Endowus opens a trust account with UOB Kay Hian in your name. This means even if Endowus goes under in the future, you will still have access to your access held under your name under UOB Kay Hian.

3. What Portfolios Are Available with MoneyOwl?

Here is a look at the portfolios you can invest in with MoneyOwl, and they fund:

Investment portfolio Financial goal Funds
Dimensional Funds portfolios Gaining long-term capital growth Five standard portfolios:

  • Equity portfolio (88% equities in developed markets, 12% equities in emerging markets)
  • Growth portfolio (70% equities in developed markets, 10% equities in emerging markets, 20% global core fixed income)
  • Balanced portfolio (53% equities in developed markets, 7% equities in emerging markets, 30% global core fixed income, 10% global short fixed income)
  • Moderate portfolio (35% equities in developed markets, 5% equities in emerging markets, 30% global core fixed income, 30% global short fixed income)
  • Conservative portfolio (18% equities in developed markets, 2% equities in emerging markets, 80% global short fixed income)
WiseIncome portfolios Earning passive income in the long-term
  • Asian bonds (28%)
  • US/SG Govt sector (10%
  • Cash (2%)
  • Global equities (30%)
  • S-REITs (30%)
WiseSaver portfolios Earn higher interest than fixed deposit accounts from your spare cash
  • Singapore dollar fund deposits
CPF portfolios Earn higher than 2.5% p.a. returns on your CPF OA savings in the long run
  • CPF Balanced (60% equities, 40% bonds)
  • CPF Growth (80% equities, 20% bonds)
  • CPF Equity (100% equities)

 

4. What Is the Minimum Investment Amount with Endowus and The Minimum Transaction Size for Cash Smart?

Endowus has a minimum initial investment of S$1000. Once you fulfill the minimum initial investment, you will be required to make subsequent deposits of S$100 per month. Additionally, there is no minimum balance for Cash Smart.

5. Who Is MoneyOwl Best for?

MoneyOwl is an idea for investors looking for an investment platform with low fees and a minimum investment amount.

Closing

MoneyOwl allows you to start investing for as low as S$50 per month and offer low-cost services such as will writing and 50% rebates on Insurance commissions. It is a one-stop shop for almost all your financial needs. Endowus, on the other hand, offers access to high-value investment managers from reputable financial institutions and allows you to invest with CPF, SRS, and cash. However, it has a high minimum investment amount of S$1,000.

Key Takeaways

  • MoneyOwl has a low initial investment amount of S$50, while Endowus has an initial investment amount of S$1,000.
  • Endowus offers multi-asset ESG portfolios that are customized to your risk tolerance.
  • MoneyOwl only invests in mutual funds, while Endowus invests funds in mutual funds and unit trusts.

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