Syfe Review: A Robo-Advisor That Makes Investing Easy

In a crowded robo-advisor market where most platforms offer similar products, how does one stand out? 

Syfe seems to have found its niche, not only by offering managed portfolios but also by being the only robo-advisor in Singapore with its own fee-free online brokerage platform, Syfe Trade.

This all-in-one setup aims to make investing more accessible by combining automation with the flexibility of hands-on trading, all within a single platform.

But is this “all-in-one” approach truly beneficial for investors? In this article, we’ll dive into Syfe’s product offerings, explore its key advantages, and take a closer look at some potential drawbacks.

What types of products does Syfe offer?

Like many robo-advisors, Syfe provides a variety of pre-built portfolios designed to meet different investment goals and risk appetites. 

Syfe Core Portfolio

The first vertical that Syfe has thrived on since the beginning is the Core Portfolio, which is fully managed by Syfe. 

Syfe Core is built following some guiding principles: Asset Class Risk Budgeting, Stable Asset Allocation. 

These first two principles help to keep asset allocations relatively stable over time, with allocations varying only slightly due to market fluctuations, in line with the risk level that investors choose. 

However, what makes Syfe unique is its third guiding principle, Smart Beta. 

Smart Beta is a multi-factor approach to investing, taking factors like value, quality and size into consideration, allowing Syfe to generate better risk-adjusted returns. 

Consequently, the Core Portfolio offers 4 different portfolios for investors to choose from, Core Equity100, Core Growth, Core Balance, and Core Defensive. 

The key difference between each Core portfolio is their exposure to stocks and bonds, which adheres to their all guiding principles. 

Here’s a comparison of their features:

Syfe Passive Income Portfolios 

Income+ 

Income+ is designed to provide investors with consistent, diversified income for capital preservation or appreciation. 

Investors can choose to enjoy a monthly dividend payout or automatic reinvestments of their divided. 

All of the Income+ portfolios are built in partnership with PIMCO, whose role is to provide insights and asset allocation to Syfe. 

The portfolios are then constructed based on a multi-step process, which includes optimising allocations based on key macro themes, opportunities and risks. 

Here’s a comparison of the two portfolios under Income+ and their features: 

REIT+ 

Similarly, the REIT+ is designed to provide investors with consistent dividend incomes generated from Singapore REITs. 

This allows investors to earn passive income without the hassle of being a landlord, and benefit from inflation as Singapore real estates historically benefit from rising prices. 

Here’s a comparison of the two portfolios under REIT + and their features: 

Syfe Cash Management

Syfe’s Cash Management solutions provide a smart way to earn returns on your idle cash while maintaining high liquidity.

One of the key benefits of cash management accounts is that they typically offer daily returns.

This means you can withdraw your funds at any time without losing the returns you’ve already accumulated, a convenient feature for those who want flexibility alongside better returns on their cash.

Cash Flexi+ 

Cash Flexi+ (SGD)

The Syfe Cash Flexi+ (SGD) gives you access to two low-risk, high-liquidity funds. 

It consists of the LionGlobal SGD Money Market Fund (30%) and LionGlobal SGD Enhanced LiquidityFund SGD Class I (Accumulation) (70%).

As the name implies, you may withdraw your funds at any time and unlike other cash management products, the Syfe Cash Flexi+ (SGD) has no minimum funding.

Cash Flexi+ (USD)

The Syfe Cash Flexi+ (USD) gives you access to USD money market funds with the option to fund with USD or SGD. 

While USD money market funds typically provide higher returns than their SGD counterparts, the Syfe Cash Flexi+ (USD) does come with a minimum funding requirement of US$10,000.

Cash+ Guaranteed

If you’re looking for a cash management solution that shares similarities with fixed deposits, Cash+ Guaranteed is an option to consider.

Like fixed deposits, your funds in the Cash+ Guaranteed portfolio are capital-guaranteed and you will receive returns at the end of your 3,6, or 12 month term. 

This is because Syfe invests your funds into fixed deposit products provided by MAS-regulated banks.

The advantage that it has over fixed deposits is that there is no minimum funding required!

The table below provides a summary of the three portfolios under Cash+ and their features.

You can learn more about Syfe Cash+ Guaranteed here. 

Custom 

For those who prefer to pick their own, Syfe also has a custom portfolio builder where you can pick from over 100 best-in-class Exchanged Traded Funds (ETFs)

Syfe Brokerage 

Syfe Brokerage (formally known as Syfe Trade) is Syfe’s very own online brokerage platform. Notably, Syfe is the only robo-advisor in Singapore with a brokerage feature integrated into its app.

At the time of its launch, it afforded investors the ability to trade fractional shares at a very low cost in the US stock market on top of monthly free trades!

Today, the platform has expanded its market access, giving investors access to the US, Singapore, and Hong Kong stock exchanges.

If stock picking isn’t your thing, Syfe Brokerage offers specially curated “stock bundles” tailored to popular themes and trends. 

These bundles include options like the “Warren Buffet” bundle, which comprises Berkshire Hathaway’s top holdings, and the “Magnificent 7” bundle, which focuses on technological innovation.

What are the benefits of Syfe?

#1 - Low fees

One of the standout benefits of a robo-advisor like Syfe is its low fees, especially when compared to traditional mutual funds. 

Here’s a breakdown of the fees across Syfe’s products:

• Syfe Managed Portfolios: 0.65% to 0.25% p.a.
• Syfe Cash Flexi+ (SGD): 0.15% to 0.05% p.a.
• Syfe Cash Flexi+ (USD): 0.20% to 0.15% p.a.

Syfe also offers an affordable way to invest in US stocks through fractional shares, making it easier to access high-priced stocks. 

Here’s how Syfe Brokerage stacks up across different markets:

• US market: 2 free trades to unlimited free trades per month, US$1.49 per trade to US$0.99 per trade thereafter
• Singapore market: 0.060% to 0.040% of trade value, min. S$1.98 per trade
• Hong Kong market: 0.060% to 0.040% of trade value, min. HKD$15 per trade

By keeping fees competitive across its managed portfolios, cash management accounts, and brokerage services, Syfe ensures that investors can maximize their returns without breaking the bank.

#2 – Flexibility to build own portfolio or opt for managed portfolios

As Syfe is the only robo-advisor platform in Singapore with an integrated trading platform, you can buy stocks directly across the US, Singapore and Hong Kong markets. 

This versatility offers something for every type of investor. 

Whether you’re a passive investor who prefers a hands-off approach with managed portfolios or someone who wants to actively build your own portfolio of funds and stocks, Syfe has you covered.

What’s more, Syfe grows with you. If you’re just starting out and want to dip your toes into investing through managed portfolios, you can do so with ease.

And as you gain confidence and experience, you won’t need to switch platforms to take a more active role in your investing. 

Syfe allows you to transition seamlessly into building your own portfolio or testing out different strategies, all within the same ecosystem.

#3 – Licensed and regulated by MAS

Syfe operates under the strict regulatory framework of the Monetary Authority of Singapore (MAS), ensuring a high standard of trust and transparency. 

As an MAS-licensed platform, Syfe holds a Capital Markets Services License and is also an Exempt Financial Adviser.

To safeguard your investments, Syfe ensures client money and assets are held separately from company funds. Here’s how your funds are protected:

• Client Money: Held in segregated client accounts with regulated financial institutions such as DBS and HSBC Singapore.
• Client Assets: Stored in custodian accounts with reputable institutions like Saxo Capital Markets and Lion Global.

This separation of client and company funds means your money remains protected even in the unlikely event that Syfe is liquidated. 

What are some potential drawbacks of Syfe?

#1 - Limited market access

While Syfe’s brokerage platform is a unique offering among robo-advisors, its market access is currently limited to the US, Singapore, and Hong Kong stock exchanges. 

For investors looking to diversify into other markets, this can be a drawback.

For instance, Singaporeans investing in Ireland-domiciled ETFs through the London Stock Exchange can benefit from reduced dividend withholding tax. 

Unfortunately, this isn’t an option with Syfe’s current platform, which could be a dealbreaker for those seeking a broader range of global investment opportunities, or more tax efficiency. 

#2 – Unable to invest CPF funds

Syfe currently doesn’t support investing with CPF funds. 

As CPF funds are a key component of retirement planning for many Singaporeans, the absence of this feature might make Syfe less appealing compared to other robo-advisors that do offer CPF investment options.

However, you can still invest using your cash or SRS funds. 

You can learn more about Syfe's SRS solutions here. 

What Would Beansprout Do? 

Syfe ticks a lot of boxes for beginner investors looking to start their financial journey. 

The platform’s user-friendly interface makes it easy to navigate, even for those new to investing.

One of Syfe’s biggest draws is its low fees and accessibility. 

With no minimum investment required for its Core and REIT+ portfolios, fresh graduates or anyone wanting to test the waters without committing significant capital upfront can consider using Syfe to start with.

For those interested in venturing into the U.S. market, Syfe’s fractional shares feature and free monthly trades are also appealing. 

These features make it possible to invest in high-priced stocks without needing to purchase an entire lot, so those with limited budgets or just starting out can also dip their toes into direct stock investments.

Overall, Syfe offers a flexible, cost-effective, and approachable solution for building your investment portfolio, whether you’re taking your first steps or looking to diversify further. 

While there are some limitations, such as restricted market access and the inability to invest CPF funds, Syfe is a strong contender for beginner and budget-conscious investors.

If you’re interested to start investing with Syfe, you may sign up with our link here.

Compare Syfe with other platforms to find the best robo-advisor in Singapore here. 

If you are looking to take a more active approach to investing, check out the best online brokerage and trading platform in Singapore here. 

Join the Beansprout Telegram group get the latest insights on Singapore bonds, stocks, REITs, and ETFs.