Endowus

The Singapore Financial Market allows Singapore citizens and permanent residents to invest in retirement funds like the Central Provident Fund (CPF) and Supplementary Retirement Program (SRS) to secure their life after retirement. Read on to know more about Endowus and how it provides financial security.

Endowus Overview

Endowus is a Robo Advisor that allows investing your savings in a regular CPF and SRS account besides the liquid cash you might have in financial instruments that offer much better returns than the CPF. However, while these investments are safe and guarantee fixed returns, they might not be sufficient to ensure complete financial security. This Singapore-based financial technology company curates your investment portfolio with financially sound investment opportunities at the lowest cost possible.

Endowus in a Nutshell

  • Investment – Mutual Funds and Unit Trusts
  • Minimum Investment – S$ 1,000
  • Types of funds offered – Reputed fund managers like Dimensional Fund Advisors and PIMCO.
  • Fees – 0.05% to 0.60%, 100% trailer fee rebates, and no sales charges
  • What can you invest in? – CPF, SRS, and Cash 

How Does Endowus Work?

On opening the Endowus account, investors receive a UOB Kay Kian trust account to hold their assets and process their transactions. The initial investment is S$ 10,000 (from several sources like CPF, SRS, and cash). While the CPF offers a return of 2.5%, Endowus can provide between 3% to 9% annually, depending on the portfolio choice. Endowus is the only Robo advisor allowing investment of CPF, SRS, and liquid surplus cash.

Reasons To Choose Endowus

Here are some compelling reasons for choosing Endowus as your Robo advisor.

· Invest Your CPF, SRS, And Surplus Cash In A Single Account.

The CPF Investment Scheme allows investors to invest their CPF, SRS, and liquid surplus cash using a single account. While the regular CPF account offers a fixed return of 2.5%, the CPF (SA) offers 4% per annum. You can earn an additional 1% on the first S$ 60,000 of CPF combined balances, with a maximum of S$ 20,000 for the CPF (OA).

· Let Your Idle Cash Grow Substantially.

The savings bank interest rates have come down radically over the years, leaving you with fewer avenues to let your idle cash grow. The Endowus Cash Smart account offers an opportunity to earn up to 1.4% on your idle cash holdings without restrictions like minimum credit card spending, etc.

· Access Global Funds At Low Costs.

Endowus allows retail investors to access products from globally-reputed fund managers like PIMCO and Dimensional Fund Advisors at the lowest cost possible.

· Take Advantage Of The Low, All-In Access Fee.

With Endowus, investors do not have to pay different fees at various levels. Instead, it stipulates a simple, all-in fee structure including all the costs. However, it does not include the fund-level fee of 0.18% to 0.64% per annum.

· Make An Environmental And Social Impact.

Endowus ESG Portfolios allow retail investors to invest in ESG equities and fixed income products. It enables you to reap the benefits of financial returns while generating a positive environmental and social impact.

· It Allows Investors To Curate Their Investment Portfolios.

Endowus Fund Smart product enables investors to design ideal investment portfolios depending on their preferences. One can invest CPF, SRS funds, and idle cash and look for the Robo-advisory option to help customize their portfolio.

· It Is A Secure Investment Platform.

Endowus creates a trust account at UOB Kay Hian, Singapore’s largest broker when you open an Endowus account. It further ensures that you have access to your assets held in the trust account even if Endowus winds up in the future.

Types Of Portfolios Offered By Endowus

Endowus offers investment and cash management portfolios.

Investment

  • Endowus Core Portfolios: Depending on your objectives and risk tolerance levels, Endowus offers six different portfolios for investment, broken down into a percentage of stocks versus bonds.
    • Very Aggressive – 100:0
    • Aggressive – 80:20
    • Balanced – 60:40
    • Measured – 40:60
    • Conservative – 20:80
    • Very Conservative – 0:100
  • Endowus Fund Smart: Endowus offers a new product, Fund Smart, allowing investors to build and personalize their portfolios. Endowus provides a choice of eight funds to choose from, including equity, multi-asset, and fixed income funds.

Cash Management

Cash Management accounts help your idle funds grow. One such option is Endowus Cash Smart. Unlike other cash management accounts, Cash Smart does not have any lock-in period, no tiers, and no limit to the cash amount you keep in the account. Besides your liquid cash, investors can keep their SRS funds in it. Endowus offers three types of Cash Smart accounts, depending on the investment portfolio, underlying funds, and projected returns.

  • Cash Smart Core – A diversified portfolio of cash and money market funds (50% Fullerton Cash Fund and 50% Increased LionGlobal) with projected yield after deducting all fees from 0.8% to 1% per year.
  • Cash Smart Enhanced – A diversified money market portfolio and high-quality short-term bonds (50% UOB United Fund and 50% Increased LionGlobal) with a projected yield of 1.2% to 1.5% per annum after deducting all fees.
  • Cash Smart Ultra – A diversified portfolio of short-term fixed income and money market funds (27.5% LionGlobal + 25% Fullerton short-term interest rate fund + 25% LionGlobal short-term bond fund + 12% Nikko AM Sheraton Income Fund + 10% PIMCO GIS Low-income fund) with a projected yield of 1.8% to 2% per annum after deducting all fees.

(Source – endowus.com)

Endowus Fees

Endowus does not charge anything for opening/closing of accounts and transferring/withdrawing funds. Besides, there are no trailer fees. The Endowus Fee Structure is as follows.

  • Fund Smart
    • Cash, CPF, and SRS – 0.30%
    • Multi-fund portfolio – Similar to General Investing
    • Short-term cash management – Similar to Cash Smart

Endowus Pros And Cons

Benefits of investing in Endowus crypto exchange Robo-advisor:

  • Endowus allows investment of CPF, SRS funds, and liquid cash.
  • It offers a separate cash management account to allow your space cash to grow.
  • The all-in access fee is considerably less than the industry average.
  • Individual investors can access products from reputed fund managers otherwise restricted to institutional investors alone.
  • It offers multi-asset ESG portfolios, depending on your risk tolerance levels.

Drawbacks of investing in Endowus:

  • Individuals below 21 years of age cannot invest in Endowus.
  • The minimum investment amount is S$ 10,000.
  • Significant investments are needed to benefit from the low fees.

Conclusion: Is Endowus Safe To Invest For Beginners?

Endowus offers safe investment options, even for beginners. You get a UOB Kay Hian trust account when you open an Endowus account. It ensures the safety of your crypto exchange assets, even if Endowus goes into liquidation in the future.

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