SINGAPORE: A recent survey by Capco of 500 Singaporeans with investable assets of at least US$100,000 (around S$134,410) revealed a shift in how Singaporeans managed their wealth. Financial Horse reported that while many affluent Singaporeans preferred to manage their own wealth with support from professional advisors, younger investors embraced digital tools such as artificial intelligence (AI) and robo-advisors for financial decisions.
The primary motivation for growing wealth among respondents was financial security (39%), closely followed by retirement planning (25%). For those under 35, goals like education and travel were more immediate priorities, while individuals aged 45 and above focused more on securing their retirement.
When it came to finding investment ideas and advice, many respondents turned to online research, consultations with wealth managers, and financial advisors. Friends and family also played a role, and social media and investment books were used by over a third of respondents.
Despite consulting wealth managers, 74% of respondents still conducted their own research, and 42% sought advice from friends and family. The cost of wealth management services and finding the right advisor continued to be major obstacles for Singaporeans.
The survey highlighted that many respondents actively managed their own wealth. About one-third had dedicated wealth managers, another third used occasional professional advice, and 27% employed robo-advisors. Notably, 50% of male respondents under 25 used robo-advisors. Only a few relied on family offices, and most respondents favoured the convenience of managing their wealth through online platforms.
Investor confidence varied. More than half (54%) of respondents felt both financially literate and confident about investing, while 42% felt literate but lacked confidence. While the majority (64%) had a moderate risk appetite, among those aged 45 and over, 43% of women described themselves as conservative compared to 18% of men.
With the rise of AI, the survey noted that over half (59%) of the participants were comfortable with AI assisting in their investment decisions, particularly among those under 35.
For further details, refer to the full report here. /TISG
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