How do Singaporeans manage their money?
Capco recently concluded a survey of 500 Singaporeans with minimum investable assets of USD 100,000.
The survey results show that an increasing number of Singaporeans are choosing a more active management strategy, preferring to manage their money themselves, with the support of advisors.
Younger investors show a keen interest in digital tools, such as robo-advisors and AI.
Here are some of the interesting findings from Capco’s survey.
This article was written by a Financial Horse Contributor.
1. Why do you want to grow your wealth?
When asked about why they wanted to grow their wealth, there were a few motivating factors.
The top factor was a desire for financial security, followed by retirement needs.
Those under 35, tended to focus more on specific life goals, such as education, travel, and breaks from work.
Whereas those aged 45 and over, ranked retirement needs first.
Source: Capco
2. Where do investors look for investment ideas and advice?
When asked about where they turn to for investment ideas and advice, a majority said online research, followed by wealth managers and financial advisors, as well as friends and family.
Social media and investment books were also used by over a third of respondents.
Those that use dedicated wealth managers and financial advisors naturally turn to them for advice and ideas, but they continue to conduct their own online research (74%) and also rely on friends and family (42%), and other sources.
Increasingly, there is a trend of Singaporeans taking their financial matters into their own hands, using a range of sources for ideas and advice, including online research and social media.
Cost and identifying the right wealth manager/advisor remains the biggest reason stopping Singaporeans from accessing personal wealth management services.
3. Active role in management
Very interestingly, a majority of survey respondents say they manage at least part of their wealth themselves.
About a third have dedicated wealth managers and financial advisors.
While another third use occassional professional advice.
27% use a robo-advisor for their wealth needs, which showcases a trend towards confidence in digital tools.
50% of male respondents under 25 years old use robo-advisores.
A smaller number rely on a family offfice.
Most respondents these days also prefer the convenience of online channels to manage their wealth.
4. Lack of confidence in investing
At the same time, not all investors feel confident about investing.
About half of respondents (54%) feel both financially literate and confident about investing.
42% say they feel literate but lack confidence.
Investing is definitely a lifelong journey, and the more we learn, the more we earn.
Most survey responndents (64%) say they have a moderate risk appetite.
Among younger men and women, risk appetite was similar.
However among those aged 45 and over, 43% of women described thei risk appetite as conservative, compared to 18% of men.
5. Using AI for investing
With the huge boom in AI, it is only a matter of time before AI is interwoven with our investment decision-making.
Expectations about the move to digital/AI wealth management was much stronger among those under 35 years old.
Over half of the survey respondents were comfortable to have AI guiding their decisions on wealth management.
Source: Capco survey
Are you comfortable to use AI to support your investing decisions?