Kristal.AI, a Singapore-headquartered asset manager, has launched a no-fee robo advisor in a bid to attract accredited and retail investors.
Launched at the Singapore FinTech Festival, the robo advisor charges no advisory, management or performance fees, and invests only in exchange traded funds (ETFs).
Asheesh Chanda, founder and CEO of Kristal. AI said high-net-worth individuals are already creating accounts on the platform to assess how the artificial intelligence-based technology works.
‘I’ve had people from various private banks coming up and saying, “Let me sign up for the free version”. A lot of accredited investors are using it,’ Chanda told Citywire Asia.
Meanwhile, Kristal.AI also has two other product platforms, called Premier and Private Wealth, with the latter available only to accredited investors.
The minimum investment needed for Private Wealth is $100,000, and fees range from 0.2% to 2% depending on the investment products used by clients.
A customer can access the platform by signing up using MyInfo, a digital data vault developed by the Government Technology Agency of Singapore, and completing their know-your-customer and risk profiles.
Private Wealth uses a variety of vehicles, including bonds, equities, mutual funds, derivatives and forex, to invest across regions such as emerging markets, Europe and the US.
‘There's very little barrier for them [accredited investors] to sign up for the free [robo advisor] version. They then see what is available on Private Wealth and upgrade,’ Chanda explained, emphasising that Kristal.AI is more of a digital private bank than a robo advisor.
Kristal.AI, which manages about $25 million for accredited investors, recently graduated out of Singapore’s fintech regulatory sandbox.
It now has a full-fledged capital markets services licence, allowing it to conduct investments for all retail and accredited investors in the city-state.
Founded in 2016, Kristal.AI is also operational in India, Dubai and Hong Kong, where it is licensed to advise on securities and provide asset management services.