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How to Identify your Risk Profile on UOBAM Robo-Invest

How to Identify your Risk Profile on UOBAM Robo-Invest



In life, every decision comes with risk, some bigger than others. Similarly, when you embark on your journey with UOBAM Robo-Invest, risk assessment is the first step in account opening and essential for UOBAM’s experts in determining and recommending a suitable portfolio that suits you.

There’s no shortage of financial products to help you meet your goals, from unit trusts to bonds. However, what’s right for another person may not be right for you; and it’s easy for a new investor to be overwhelmed with all the options. UOBAM Robo-Invest is an easy-to-use app that helps you curate the best options, tailored to your unique goals. Here’s how to use it:

  • Robo-advisory service managed by experts from award-winning1 asset manager, UOB Asset Management (UOBAM)
  • Combination of machine algorithms and human expertise that aims to offer you reliable financial advice and portfolio recommendations
  • Opt for a sustainable future with Environmental, Social and Governance (ESG) integrated portfolio
  • Easy to start - from just S$1, enjoy low advisory fees from 0.6% p.a.**

1Please visit www.uobam.com.sg for details on the full list of our awards.

Start reaching your financial goals with UOBAM Robo-Invest

What makes UOBAM Robo-Invest unique is that it combines the insights and experience of UOB Asset Management’s experts with our advanced proprietary smart algorithm to build a portfolio tailored to your needs.

UOBAM Robo-Invest’s key investment inputs by UOBAM’s investment and product committees
Figure 1. UOBAM Robo-Invest’s key investment inputs by UOBAM’s investment and product committees

UOBAM Robo-Invest is the first robo-adviser to be exclusively available on a mobile wallet - Singtel Dash.

Singtel Dash app is available on the Google Play Store or Apple App Store.

How your risk profile affects your choice of investments

Different types of financial instruments have varying degrees of risk. By understanding your risk appetite, you’d be in a better position to make informed decisions when reviewing your financial goals.

One’s risk may be affected by factors such as:

  • Personal aspirations
  • Age
  • Psychological or emotional preferences
  • Dependents and other obligations

1. Personal aspirations
Personal aspirations can include short-term goals, such as saving enough for a wedding, a year-long break, or a car. These can also include longer term goals, such as a desired retirement lifestyle.

The extent of these aspirations will determine your financial goal and the target rate of return on your portfolio. Figure 2 shows financial instruments and their corresponding time horizon to double the initial capital.

Fig 2 Compounding Interest Source: Seedly.sg
Figure 2. Power of compounding interest.

This image is provided solely for the purpose of illustrating the power of compounding across different interest rates. It is by no means a form of financial advice.


2. Age

Conversely, older individuals who are nearing retirement might have lower risk tolerance and seek to minimise volatility in their retirement plans.

3. Psychological or emotional preferences
It’s important that you understand and are comfortable with the risk level of your portfolio as it helps you stay on track of your financial goals.

4. Dependents and obligations
If you have dependents such as children or elderly parents, or debt obligations, your risk levels and therefore portfolio may need to be adjusted accordingly so that you can still provide for your dependents or fulfill your obligations. For example, the sole breadwinner in a family may prefer investments with consistent returns.

Assessing your risk appetite with UOBAM Robo-Invest

UOBAM Robo-Invest recommends a portfolio tailored to your risk appetite and financial objectives. To determine your risk level, simply answer some questions regarding your investment preferences:

Assessing your risk appetite with UOBAM Robo-Invest
Assessing your risk appetite with UOBAM Robo-Invest
Assessing your risk appetite with UOBAM Robo-Invest

Figure 3. Start of Risk Assessment on Singtel Dash app: Assessing user’s possible reactions to drop in portfolio value

Based on your responses to the questions, UOBAM Robo-Invest will be able to place you in one of five risk categories:

Risk Category Description
Very Conservative
  • Strive to keep up with long-term inflation
  • Accept lower fluctuations in the value of my portfolio
Conservative
  • Strive to beat long-term inflation
  • Accept low fluctuations in the value of my portfolio
Moderate
  • Strive for moderate capital growth
  • Accept moderate fluctuations in the value of my portfolio
Aggressive
  • Strive for higher than moderate capital growth
  • Accept high fluctuations in the value of my portfolio
Very Aggressive
  • Strive for very high capital growth
  • Accept high fluctuations in the value of my portfolio


Figure 4. The 5 risk categories users can select from

Your recommended risk profile will be explained to you. If you change your mind, or don’t agree with what’s presented, you can also opt to retake the risk assessment.

UOBAM Robo-Invest will present various portfolio options to you, tailored to match your assessed risk appetite. You can access a description of the portfolios presented, along with their key highlights.

UOBAM Robo-Invest Global Impact portfolio features assets that integrate Environmental, Social, and Governance (ESG) factors. These allow investors to contribute to a sustainable future.

ESG Figure 5. Introduction to UOBAM Robo-Invest ESG portfolio

You can see the asset allocations of each portfolio

These are divided into bonds, cash, and equities.

Sample of asset allocation chart within your recommended portfolio
Figure 6. Sample of asset allocation chart within your recommended portfolio

Most portfolios are a mix of all three asset types, but the allocation will vary based on your selected risk level and portfolio preference (ESG or non-ESG).

Sample of Portfolio Forecast on recommended portfolio
Figure 7. Sample of Portfolio Forecast on recommended portfolio
Any projection or forecast is not necessarily indicative of the future or likely performance.


Information description for Expected returns
Figure 8. Information description for Expected returns

The expected rate of return is an estimate of how quickly you can expect the invested money to grow, averaged out on an annual basis. Note that there are three forecasts available from overall “Good”, “Average” to “Poor” market conditions.

If the estimated rate of return is insufficient, you can consider a more aggressive portfolio; but this requires a higher risk appetite. For instance, you may select a “Very Aggressive Global Impact” portfolio offering a higher potential return that bears greater risk than your current risk tolerance. UOBAM Robo-Invest will indicate if you’ve chosen a portfolio that’s outside of recommendations:

Sample of notification on Portfolio Dashboard
Figure 9. Sample of notification on Portfolio Dashboard when portfolio selected is different from UOBAM Robo-Invest’s recommendation.
Any projection or forecast is not necessarily indicative of the future or likely performance.


While you should feel free to browse other options, picking a portfolio that properly matches your risk appetite will help you invest at risk exposures you’re comfortable with.

Once you’ve made your decision, you can get started with a single tap

Portfolio confirmation screen with your selected portfolio
Figure 10. Portfolio confirmation screen with your selected portfolio

Simply confirm your decision, and you can start - there’s no need for any long meetings or face-to-face consultations, unless you want it.

Do remember to review your portfolio and needs

Building a portfolio is not a one-off process. You may find that your life circumstances and needs change as you grow older, and that your risk appetite as well as your desired returns - will change accordingly.

Do review the portfolio periodically, and rebalance it based on your emerging needs.

Want to find out more on how UOBAM Robo-Invest automatically rebalances your portfolio? Read more here.

Promo

Launch the Singtel Dash app and tap on the ‘Invest’ tile to start growing your wealth sustainably via UOBAM Robo-Invest today. Get S$10 worth of credits* by simply opening an account by 30 June 2023, and an additional S$20 worth of credits^ & 1,000 Dash reward points with a minimum top-up of S$500.

Singtel Dash app is available on the Google Play Store or Apple App Store.

Please note that there are no charges for each top-up and withdrawal. However, the sale of assets will incur other underlying fund-related fees such as trustee fees, valuation fees, US Securities and Exchange Commission (SEC) fees (applies to sell trades for US-listed ETFs).

UOBAM Robo-Invest terms and conditions apply.

Important Notice & Disclaimers:
*UOBAM Robo-Invest S$10 worth of credits Activation Promotion is valid 1 Jan 2023 to 30 June 2023 only. View full terms and conditions here.

^UOBAM Robo-Invest S$20 worth of credits Top-up Promotion is valid from 1 Jan 2023 to 30 June 2023, both dates inclusive, and open to all new and existing UOBAM Robo-Invest users. Limited to the first 500 UOBAM Robo-Invest users who meet the promotional criteria, excluding users who have qualified for the Lunar New Year Promotion. View here for full promotional terms and conditions.

**Other US SEC fees, taxes and underlying fund-related fees apply. Visit dash.com.sg/uobam-roboinvest for details.

Fees are calculated and accrued daily and will be charged at the end of every calendar quarter. The quarter ends on the last day of March, June, September and December.

This document is for your general information only. It does not constitute investment advice, recommendation or an offer or solicitation to deal in Exchange Traded Funds (“ETFs”) or in units in any Unit Trusts (“Unit Trusts”, ETFs and Unit Trusts shall together be referred to as “Fund(s)”) nor does it constitute any offer to take part in any particular trading or investment strategy. This document was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. The information is based on certain assumptions, information and conditions available as at the date of this document and may be subject to change at any time without notice. If any information herein becomes inaccurate or out of date, we are not obliged to update it. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of any Fund or UOB Asset Management Ltd (“UOBAM”) and any past performance, prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of any Fund and the income from them, if any, may fall as well as rise, and may have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in any Fund involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited (“UOB”), UOBAM, or any of their subsidiaries, associates or affiliates (“UOB Group”) or distributors of the Fund. Market conditions may limit the ability of the platform to trade and investments in non-Singapore markets may be subject to exchange rate fluctuations. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the respective Fund's prospectus. The UOB Group may have interests in the Funds and may also perform or seek to perform brokering and other investment or securities-related services for the Fund. Investors should read the Fund's prospectus, which is available and may be obtained from UOBAM or any of its appointed agents or distributors, before investing. Notwithstanding the digital advisory services that will be provided to you through UOBAM Robo-Invest, ou may wish to seek advice from a financial adviser before making a commitment to invest with UOBAM Robo-Invest, and in the event that you choose not to do so, you should consider carefully whether investing through UOBAM Robo-Invest is suitable for you. Any reference to any specific country, financial product or asset class is used for illustration or information purposes only and you should not rely on it for any purpose. We will not be responsible for any loss or damage arising directly or indirectly in connection with, or as a result of, any person acting on any information provided in this document. Services offered by UOBAM Robo-Invest are subject to the UOBAM Robo-Invest Terms and Conditions.

All screens shown and reference to any asset class are for illustration or information only and should not be relied upon or construed as a recommendation of specific model portfolios. Projections shown are not indicative of future or likely performance of any portfolio. Investments in any portfolio involve risks, including the possible loss of the principal amount invested.

UOB Asset Management Ltd Co. Reg. No. 198600120Z

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