Customised robo-investing: What to know about investing for short and long-term goals

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Evolving with one’s needs

UOBAM Invest’s services include its digital advisor, a portfolio planner that customizes investment portfolios based on each investor’s risk profile. It offers dynamic portfolios designed to meet the evolving needs of investors, says Ms Ong.

After creating an account and completing a risk profile assessment, users can simply select their investment goals, such as buying a home, a car, a wedding or simply a holiday, and their investment horizon.

The robo-adviser employs a “guided approach” to help newer investors realize what their goals are by asking some questions, says Ms Ong, before providing them with recommendations.

UOBAM Invest focuses on personalisation, because “different individuals – even those at the same life stage – can have different priorities in life and different investment objectives,” says Ms Ong. “Their risk tolerance and investment horizon also varies.”

She gives an example of how the investment portfolio of a person in their 20s would look very different from that of someone in their 40s – even if they are both working towards growing their nest egg. “Even if they have the same risk tolerance, because their investment time horizons are different, the customized portfolio for each individual will differ.”

Retail investors can fine-tune their investment portfolios by changing their goals, contributions, duration and risk tolerance level anytime, she adds. The app then shows an overview of the probability of them achieving their desired returns.

More savvy investors can make use of UOBAM Invest’s Fund Direct service, where they can select their own funds from a range managed by UOBAM’s in-house investment teams.

“Investment portfolios need to be dynamic, so as to cater to each person’s evolving needs,” says Ms Ong. “Not only is each individual unique, but one’s priorities will also change with time.”

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