Due to its low management fees and functionality with CPF and SRS funds, Endowus is a great option for individual investors in Singapore. Not only that, this robo advisor takes pride in its status as an independently owned and operated financial advisor and does not charge its users any trailer fees or any sales commissions.
|Summary of Endowus's Robo Advisor Platform|
|Allows Investment of CPF & SRS Funds, Cash|
|Optimal incentives with no trailer fees from fund managers|
|Competitive management fees: 0.25% - 0.60% (Cash) & 0.4% (CPF & SRS)|
|No fees charged for transfers, withdrawals, account openings or closures|
|ValueChampion Exclusive Promotion: S$20 off Endowus access fees (minimum deposit of S$1,000)|
Table of Contents
- What Makes Endowus Stand Out to Investors
- Investment Opportunities at Endowus
- Endowus's Investor Eligibility Requirements
What Makes Endowus Stand Out to Investors
Endowus is one of Singapore's top robo advisors for a number of reasons. First, the platform charges competitive fees (0.25% - 0.60% cash portfolios, 0.4% CPF/SRS portfolios), which makes it the cheapest robo advisor of those that invest in unit trusts (rather than ETFs). This robo advisor allows users to invest their cash and CPF or SRS funds. Additionally, Endowus does not charge users fees for opening or closing accounts, fund transfers or withdrawals. Finally, the independently owned and operated platform does not charge its investors for trailer fees. A trailer fee is typically charged by fund managers to parties (e.g. brokers, financial advisors) that sell the fund to investors. Because Endowus does not charge its users for trailer fees or any sales commissions, it avoids any potential conflict of interests (i.e. it is not incentivised to push certain funds) and maintains its reputation as an independent financial advisor.
As of 15 April 2021, Endowus offers Cash Smart Ultra, which features higher maximum yield opportunities. This portfolio optimises your investments to earn high yields while minimising risk. Endowus Cash Smart Ultra's 1.8 to 2.0% yield target is the highest in the market among cash management accounts.
Summary of Endowus' Management Fees Cash Portfolio
|Total Investment||Annual Fee Rate|
|Up to S$200,000||0.60%|
|S$200,001 to S$1,000,000||0.50%|
|S$1,000,001 to S$5,000,000||0.35%|
Endowus has a minimum investment requirement of S$1,000, which makes it an accessible robo advisor for most consumers.
Investment Opportunities at Endowus
Endowus builds custom portfolios based on risk preferences, investment goals and preferred time horizons. The robo advisor prides itself on its globally diversification and thorough analysis of historic performance. Another notable difference between Endowus and its competitors is its focus on unit trust-based portfolios. Unlike ETFs, unit trusts are generally professionally managed and aim to outperform market indices that ETFs often track.
Endowus is also the only robo advisor that allows investing in a locally wrapped Vanguard UCITS unit trust for CPF funds. For a full description of unit trust funds, please refer to our comprehensive guide.
Endowus's Investor Eligibility Requirements
In order to be eligible for Endowus's platform, individuals must sign up online. Both retail and accredited investors are welcome, and fees do not vary between the two groups. The sign-up process takes about 10 minutes and includes a short survey. Once you've completed your registration, it will take 3-5 business days to open your account.