You can invest in S&P 500 with your CPF and SRS money with Endowus Fund Smart

Endowus recently did a soft launch of Fund Smart for their existing client. This feature is only available to their existing client for now and will eventually be made available to all hopefully in the near future. I am an existing client with Endowus and have had a chance to play with this new feature.

Fund Smart is a new investment solution on the Endowus wealth platform that allows you to build customizable portfolios with a list of curated funds. Essentially, Endowus Client is able to select what funds to invest in and what percentage of the portfolio that fund will constitute.

For the uninitiated, it is advised that you follow the Endowus recommended portfolio based on your risk profile. It will be bad for your returns if you are to customize a portfolio which does not meet your risk appetite and needs. This can result in you redeeming portfolio and creating new ones that you cannot stick with over the long run. Such actions will most definitely hurt your returns.

For those who knows what you are dealing with and want to invest into S&P 500 with your CPF OA, you can now allocate 100% of your portfolio to Infinity US 500 Stock Index Fund with Fund Smart. Before, you can only invest in the '100% equity' group of funds allocated by Endows with 37% allocation to Infinity US 500 Stock Index Fund.

Similarly, you can go with 100% First State Regional China fund if you had done your research and believe that China will drive global growth in the future. You can also do a percentage allocation in both S&P and China and/or fixed income funds for a more diversified portfolio. However, do note that you cannot change the allocation for Fund Smart once it's setup. You will need to redeem the existing portfolio before creating a new one with different allocations.

For me, I am always keen in Dimensional funds since they have more weightage on value and smaller cap companies compared with similar funds. The higher weightage on Value and small caps, I believe will give them an edge in performance in the long run. I am currently looking at creating a customized portfolio with 100% allocation on Dimension Global core equity. This will have a lower fund level fee 0.3% compared with Infinity US 500 Stock Index Fund (0.4%) as well.

For existing client, you can now log onto Endowus to check out what are the available funds, their fund level fees and past performance to start building your customized portfolio. For the rest, you can start by signing up with this referral link and get S$10,000 managed free for 6 months ($20 equivalent) with Endowus while Fund Smart becomes available to you in the near future.

Happy Value Investing