The Smart Investor’s Guide To Investing With Syfe

People invest with Syfe for a variety of reasons. For us, our aim is to set you up for a better future. We want to do what’s best for your money, from investing effectively for your goals to helping you make better financial decisions.

We do this by making investing simple and effortless for you. We manage your investments and automatically make adjustments such as reinvesting your dividends and optimising your portfolio allocation so you don’t have to. 

Ready to get started? Here’s a comprehensive look at how to set up your investments with Syfe. 

Build portfolios around your goals

Most investors have multiple goals they are investing for. These could range from shorter-term goals like taking a sabbatical to longer-term goals like retirement. 

Instead of putting your money all in one portfolio, it is far more effective to create multiple portfolios built around your specific goals. At Syfe, you can choose from three different portfolio types. Each portfolio has its own unique strategy and objective, which you can use to create your own personalised investing plan.

Passive income generator: Syfe REIT+

In this lower-for-longer interest rate environment, yields on government bonds and savings accounts are likely to stay down for the foreseeable future. Against this backdrop, Singapore REITs (S-REITs) are increasingly being seen as the more attractive source of passive income

But with more than 40 REITs listed on the SGX, how will investors know they have picked the right REITs to invest in? This is where a diversified REIT portfolio like Syfe REIT+ comes in. It holds 20 of Singapore’s largest REITs and tracks the performance of the SGX iEdge S-REIT Leaders Index. 

All in all, REIT+ holds over 650 properties diversified across all REIT sub-sectors: retail, commercial, industrial, healthcare and hospitality. Put simply, you don’t risk picking the wrong REIT with a portfolio like REIT+. 

100% REITs or REITs with risk management

Depending on your objectives, you can also choose between a 100% REITs portfolio or a REITs with Risk Management portfolio. 

With 100% REITs, you get pure REITs exposure. It is an efficient index investing strategy using the iEdge S-REIT Leaders Index to achieve market returns and broad diversification.

REITs with Risk Management is a REITs portfolio balanced with Singapore Government Bonds. 

During periods of market volatility, Syfe increases your bond allocation to mitigate portfolio risk and cushion the impact of a downturn. As volatility subsides, we will increase your REITs allocation to deliver better returns. This ensures that your portfolio will not fluctuate too wildly based on market conditions. Not sure which option is right for you? Speak to our experts to learn more.

Pure equity exposure: Syfe Equity100

Equity100 is a pure equity portfolio that invests in over 1,500 leading companies from around the world, from Amazon to Alibaba. If you’re looking for a high-return investment that can complement your bond holdings or your CPF, this is the portfolio to consider.

Equity100 combines global diversification and smart beta to access developed and emerging markets from across the world, and provide the best risk-adjusted returns over the long term.

In essence, smart beta is a strategy that seeks to capitalize on certain investment factors to deliver higher returns. Our smart beta strategy is characterized by three factor tilts.

Growth. Since 2010, growth stocks have outperformed value stocks, largely thanks to tech stocks the likes of Facebook, Amazon, Apple.

Large market capitalization. For many years, small and mid-cap stocks have underperformed relative to their larger counterparts.

Low volatility. Stocks with low volatility tend to avoid extreme price swings. This historically generates better risk-adjusted returns over time.

How we represent our factor tilts

Our factor tilts are represented using exchange traded funds (ETFs) for broad and cost-effective diversification. By selecting only liquid and low-cost ETFs, we lower your investing costs while giving you the flexibility to enter and exit your investments whenever you need to. 

Another difference between Equity100 and other smart beta funds is our factor rotation strategy. The key thing to note is that factors follow market cycles, outperforming during some periods and lagging in other periods. This rotation happens over many years and could explain why value stocks have been lagging in recent years.

A closer look at our Smart Beta strategy

To help you achieve the best risk-adjusted returns, our smart beta strategy determines which factors offer the best returns under each market cycle. We then tilt your portfolio to these factors so that you are exposed to the right factors across all market cycles.

For example, if large-cap stocks go out of favour over time, we might reduce the exposure to this factor by using equal-weighted ETFs instead. That’s because equal weighting greatly increases the footprint of smaller stocks.

Diversified portfolios for all goals: Syfe Global ARI  

Syfe’s Global ARI portfolios are designed for wealth generation. No matter what your wealth goals are, we can help you get there. 

Each portfolio is a globally diversified mix of ETFs that include stocks, bonds and gold. With one portfolio, you’re invested in thousands of companies from across the world, and from a broad range of industries.

Depending on your goals and investment horizon, we’ll first help you choose a risk level you’re comfortable with, then build a personalised portfolio that reflects these considerations. As markets move, our ARI (automated risk-managed investing) algorithm works to limit unexpected portfolio fluctuations and keep your portfolio at the right risk level. 

Different portfolios for different goals

You can also create different Global ARI portfolios for your various goals. Let’s say you intend to upgrade your home in 5 years, send your kid to college in 10 years, and retire in 15 years. You can invest for these goals using three different portfolios at different risk levels. 

For instance, you may choose our 25% risk level portfolio for your retirement savings. In general, the longer your time horizon, the more risk you can choose to take on. Our wealth experts are also on hand to advise you on a suitable risk level for your different goals.

Minimising your fees

When it comes to fees, the less you pay, the more you get to keep as returns. This is also why billionaire investor Warren Buffett champions low-cost index funds like ETFs

At Syfe, we choose low-cost ETFs for our portfolios and charge an all-in fee that starts from 0.4% per year. There is no minimum investment amount and you pay $0 in brokerage fees. This is a key benefit if you’re planning to dollar cost average.

Full flexibility

You also get full flexibility with Syfe. There are no lock-in periods and you can withdraw your funds anytime with no withdrawal fees. 

As an added bonus, dividends are automatically reinvested so you can truly maximise your portfolio potential. We don’t charge you additional fees for this. 

At Syfe, putting your money to work doesn’t have to be expensive. Start your investment plan now – your future self will thank you for it.