Why a hybrid robo-advisor is the better deal

Why a hybrid robo-advisor is the better deal

Robo-advisory services have become extremely popular because they’re a godsend for our hectic schedules. They track our investments and pretty much run on auto-pilot. When you’re dealing with deadlines, sending the kids to tuition, swimming classes, enrichment camps, and making sure you spend quality time with the fam during the holidays, this is a pretty big deal.

But we will make a bold claim: pure robo-advisory is not enough. A hybrid robo-investing solution is better.

Why do I need a hybrid robo-advisor?

Technology has made investing so much easier. The benefits of technology are everywhere – on our phones, in our homes, and in restaurants we frequent. Robots are now good enough to make insurance claims and perform simple surgeries. Technology makes our lives simpler by eliminating several steps, and by calculating things a lot faster than we can.

That’s very useful because stock markets don't take breaks. No matter which market we’re invested in, it is reacting to events all over the world. For example, a tweet by the US President could change the latest prices of assets. And that could affect the ‘mark-to-market’ value of your portfolio significantly in a manner of seconds…. all while you’re getting the kids ready for bed or catching up on the household chores late at night.

But pure robos are lacking in an important area: human insight and intuition. Hybrid robo-investing solutions fill that gap, as they offer these advantages: analyse current global developments, and anticipate how events may affect your portfolio, and respond accordingly.

For instance, the US-China trade war has stayed in news headlines for nearly two years. Whereas pure-robos respond to changes in stock market prices, hybrid robo-investing solutions are able to make sense of the politics, psychology, and posturing behind the Xi-Trump headlines, and rejig your investment portfolios accordingly.

Why is the human touch so important?

In a certain sense, investing is like surgery. While technology is now good enough to perform surgeries, most people still prefer having a real (human) in the operating theatre. That’s because the human doctors can think, rely on what they see in front of them, and make a judgement call from the knowledge base they’ve built up over the years.

This is the same principle that underlies the hybrid-investing approach.

An example of hybrid investing: digiPortfolio

In a nutshell, hybrid-investing brings the insights, advice and human touch from portfolio managers, and fuses it to the speed of tech.

Here is how we’re doing it at POSB: with digiPortfolio. We’ve taken the human expertise that was previously only accessible to private banking clients, and created a product that offers all our customers access to the same perfect match of human expertise and robo-technology.

How is digiPortfolio different from the typical robo-advisor in Singapore?

But those are big, grand, philosophical words. How exactly is digiPortfolio different from the typical robo-advisor in Singapore?

Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.

All investments come with risks and you can lose money on your investment. Invest only if you understand and can monitor your investment. Diversify your investments and avoid investing a large portion of your money in a single product issuer.

Disclaimer for Investment and Life Insurance Products

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