What’s a Swiss Robo Advisor? For those of you unfamiliar with the term, a robo advisor is a computer-programmed investment manager that is capable of buying and managing funds, and therefore the robo advisor is the best way to achieve your financial goals. In the past few years, we’ve seen many robo advisors come to market, many of which have become increasingly sophisticated. While most of these robo advisors are based on the traditional investment philosophy of diversification, some of them have taken a more unique approach to their investment philosophy, such as the Selma vs. True Wealth, which is one of the larger robo advisors that are currently in the market. While Selma and True Wealth are similar in that they both use a
The world is getting more and more technology, and more and more consumers are using this technology to make their lives better.
Wealth management as it stands today is a solution looking for a problem. There is no shortage of people who need help making their money work for them, but most of them don’t know where to start. The problem isn’t solved with different approaches to managing investments, it’s solved with something entirely different.
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Robo-advisors are a fantastic way for individuals who don’t want to put in the effort to learn how to invest themselves to invest their money without paying exorbitant fees. But how do you select a Robo-Advisor?
Selma and Genuine Wealth are two of my favorite Robo-Advisors. In this post, I will examine and contrast these two Robo-advisors.
On a number of fronts, I contrast Selma and Genuine Wealth. We’ll look at their costs, investment minimums, and investment methods.
Selma Finance is a company that specializes in finance. is a company that specializes in finance.
Selma is a fantastic Swiss Robo-Advisor that makes investing simple. It’s a fantastic way to participate in the stock market without having to deal with the hassles of DIY investing.
In 2016, Selma Finance began providing. They currently have thousands of customers and manage tens of millions of CHF in customer assets as of 2021. They are not revealing their numbers, despite the fact that they have been expanding at a rapid pace.
Surprisingly, they also provide access to Selma 3a, a third pillar. The good news is that both are controlled by the same platform, making it simple to keep track of your assets.
Migros Bank also invested in Selma Finance in 2021. This is a positive indication for Selma Finance’s future.
On the Selma online portal, you may do all of Selma’s functions. They also offer a mobile application, but it is restricted to viewing your portfolio and cannot be used to make changes. The online portal, on the other hand, is secure, so you may use it on your phone or tablet.
I have an in-depth review of Selma if you want to learn more.
Logo of True Wealth
True Wealth became offered in Switzerland in 2014. They are Switzerland’s most experienced Robo-Advisor. In 2019, they had over 5000 clients and over 290 million CHF in assets under management. In 2021, the number of employees surpassed 7000, with assets under control exceeding 500 million CHF. It implies they’re in charge of more than half a billion Swiss francs!
True Wealth’s primary selling point is its very cheap pricing. In fact, they are presently the cheapest Robo-advisor in Switzerland.
To manage your investment account with True Wealth, you may utilize the online site or the smartphone application.
If you want more more information, I’ve written a full review of True Wealth.
Let’s start by contrasting Selma’s and True Wealth’s investment methods.
Both Robo-advisors use a similar approach to investing. They’re both directly investing in ETFs. All of these ETFs are low-cost and passive. They are all utilizing ETFs of similar quality.
You can invest in bonds, equities, and real estate with both Robo-advisors. They will also offer excellent international diversity. Natural resources (oil, gas, metals, etc.) will also be available via True Wealth. However, I do not believe that this makes a difference.
They will both ask you typical questions to propose your portfolio, such as:
- How long do you want to put money into it?
- How much money do you want to take out?
- What is your level of risk aversion?
They will create a portfolio based on your answers, and they will invest your money in this portfolio.
So, just looking at the techniques, they’re both using ETFs in a decent passive approach.
In terms of execution, there are a few distinctions. To begin with, Selma is a little simpler to use than True Wealth. If you’re a novice, this is crucial. True Wealth would suit you well if you have a basic understanding of investment. Selma, on the other hand, is a bit simpler to locate if you have no prior knowledge. Overall, Selma is more user-friendly and intuitive than True Wealth. Their user interface is likewise more contemporary in appearance, although this should not be a significant factor for investors.
Another distinction is in the level of customisation. You will get your portfolio after you have completed all of the questions. You can’t modify your portfolio with Selma. You may utilize a completely new portfolio with True Wealth. For example, if True Wealth recommends investing in an 80 percent equity portfolio, you may modify it to 99 percent or 60 percent.
Customization is a wonderful thing for experienced investors. However, for novice investors, it may not be ideal since they may alter things without realizing it.
Selma, in my opinion, should still offer some degree of personalization. However, for many individuals, not having the choice may be preferable than utilizing it ineffectively.
Investing in the future
Both Robo-Advisors enable you to invest in a long-term manner. We need to evaluate Selma versus True Wealth and their sustainable investment choices if you wish to invest sustainably with these Robo-advisors.
When constructing your portfolio, you have the option of selecting an investment universe in either scenario. This determines which ETFs the service will invest in on your behalf. You’ll receive regular ETFs if you select the standard universe. You’ll also find so-called sustainable ETFs if you acquire the sustainable universe.
Both Robo-advisors utilize SRI ETFs (Socially Responsible Investing). These are exchange-traded funds (ETFs) that track the same indexes but exclude businesses that aren’t socially responsible. Companies that are vulnerable to oil or deforestation, for example, may be removed.
Overall, there is no difference between these two methods in terms of long-term sustainability. So, if you want to be a bit more environmentally friendly, these are some alternatives to consider.
Keep in mind that these ETFs don’t have a lot of rules. If you just want businesses who share your beliefs, you’ll have to use a different service (Inyova for instance).
Many individuals who wish to use a Robo-advisor to start investing in the stock market are concerned about investing too much. As a result, they must be able to begin investing with just a little sum of money. To establish an account with a Robo-advisor, you must deposit a certain amount of money. So, let’s compare Selma and True Wealth in terms of starting investment minimums.
To establish an account with True Wealth, you’ll need 8500 CHF. This isn’t a minor need.
With Selma, you can establish a bank account for as low as 2000 CHF. This is an excellent minimum, the finest in Switzerland.
So, if you just have a small money to start with, Selam will be more appealing than True Wealth. Selma’s minimum is more than four times less than True Wealth’s.
True Wealth vs. Selma on Fees
Investing fees are critical if you are investing for the long term (which you should be). In reality, when it comes to passive investment, which these two Robo-advisors depend on, fees are the only way to boost your profits. So, let’s compare Selma’s and True Wealth’s fees.
Let’s start with Selma. On your assets, the basic management charge is 0.68 percent each year. If you have more than 50’000 CHF in your account, you will only pay 0.55 percent, and if you have more than 150’000 CHF in your account, you will only pay 0.47 percent. You’ll also have to pay ETF fees, which may range from 0.15 percent to 0.25 percent each year depending on your situation. For Selma, we may choose 0.20 percent as a fair average.
After that, let’s have a look at True Wealth. On your investments, the basic management charge is 0.50 percent each year. Fees may be reduced from 0.49 percent to 0.25 percent if you have more than 500’000 CHF in your account (at 8000’000 CHF). Details may be found here. On top of that, you’ll have to pay ETF costs. True Wealth expects ETF fees to be about 0.18 percent on average.
As a result, we can compare costs for small portfolios:
- CHF 40’000
- Selma charges 352 CHF per year.
- True Wealth charges 272 CHF each year.
- CHF 100,000
- Selma charges 750 CHF each year.
- True Wealth charges 680 CHF each year.
- CHF 200’000
- Selma pays 1340 CHF per year.
- True Wealth charges 1360 CHF each year.
- a million Swiss francs
- Selma pays 6700 CHF per year.
- True Wealth charges 5700 CHF per year.
True Wealth will be less expensive than Selma below 150’000 CHF. Then, depending on your portfolio, between 150’000 CHF and 500’00 CHF will be almost the same price. True Wealth has the potential to become considerably less expensive over 500’000 CHF.
The Swiss Stamp Duty is not included in the costs in either scenario. As a result, you’ll have to pay this in addition to the management charge. However, both Robo-Advisors will be in the same boat.
Both of these Robo-Advisors have excellent pricing in general. True Wealth, on the other hand, is often less expensive than Selma. The difference may be substantial or little, depending on how much money you have invested.
Selma vs. True Wealth: Security
Finally, let’s compare Selma’s security to True Wealth’s.
We may start by looking at what they’re doing with your money. This is significant since it will determine what will happen in the event of bankruptcy.
Both providers do not keep your funds on their servers. In reality, they’re doing it via a custodial bank. True Wealth utilizes either SAXO or BLKB as a custody bank, whereas Selma uses SAXO. Your assets are secure in the custody bank if the Robo-Advisor goes bankrupt. Your money is secured by a Swiss deposit guarantee of up to 100,000 CHF if the custodial bank goes bankrupt. However, you shouldn’t spend so much money on a Robo-Advisor. Outside of the bank’s balance sheets, your shares should be secure as well.
Both businesses perform well in terms of technological security. They are both forthright when it comes to security. You may also utilize the second factor of authentication with Selma and True Wealth (2FA). This is crucial, and I highly advise you to do so.
As a result, I believe both services provide the same degree of security and protection.
Conclusion – Selma vs. True Wealth
Let’s take a look at the Selma versus True Wealth findings in a nutshell.
|Criteria||Selma Finance||True Wealth|
|Investing Methodology||ETF is the best option.||ETF is the best option.|
|Investing for the Long-Term||Okay||Okay|
|Fees for trading||Good||Better|
|Interface with all the bells and whistles||Web||Web & Mobile|
We can take a few inferences from this.
True Wealth is the most affordable choice in terms of cost. They will be considerably less expensive than Selma for extremely modest holdings. They will also be considerably less expensive for extremely big portfolios. The difference isn’t substantial for medium portfolios.
Selma Finance will be more accessible if you are a novice investor. They are simpler to operate and have a lower minimum need. On Selma Finance, I believe the entrance hurdle is lower than on True Wealth.
True Wealth’s customisation option, on the other hand, may benefit more experienced investors. Yes, you may customize the portfolio to your preferences. This, however, may not be ideal for novice investors, since it may do them more damage than benefit.
Selma and True Wealth are both outstanding Swiss Robo-Advisors in general. They are, in my opinion, the two finest Robo-Advisors in Switzerland. It’s tough to say which is the greatest since they’re so similar and have comparable virtues and disadvantages.
Selma is the ideal option for you if you know very little about investing, want the easiest approach, and want to start with modest sums. They’re simpler to use, don’t need any prior investment experience, and have a lower minimum deposit.
True Wealth, on the other hand, is a great option if you are ready to learn more about investing and invest more money directly. They’re less expensive than Selma and provide more customizing options.
You may read my post on Robo-Advisors in Switzerland for additional information and options.
Always remember that I do not use Robo-advisors and instead invest directly in the stock market. This will take more time and effort, but it will save you a lot of money. If you want to do the sesame, I have a tutorial on how to get started.
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The author of thepoorswiss.com is Mr. The Poor Swiss. He recognized he was slipping into the lifestyle inflation trap in 2017. He made the decision to reduce his expenditures while increasing his income. This blog chronicles his journey and discoveries. In 2019, he plans to save more than half of his salary. He set a goal for himself to achieve financial independence. Here’s where you may send a message to Mr. The Poor Swiss.
States of wealth varies from person to person, varying with time and location, however, one thing is clear: true wealth meant to last, is not created by procrastination. You don’t want to spend your life aggressively chasing after it, rather you want to save up for the things you really want, and leave the rest for the people who are not in a position to help you (e.g. your children).. Read more about true wealth review and let us know what you think.
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