Endowus: Switching to Amundi Prime Fund – Pros and Cons

Endowus, the Singaporean digital advisory platform, has been offering investors the option to switch to Amundi Prime Fund, instead of Lion Global Infinity. Endowus believes that the Amundi funds are much more cost-effective than Lion Global Infinity for its customers. Existing Endowus customers have received an email asking whether they want to switch over to Amundi Prime Fund, leaving many people pondering whether this is a good decision. This article examines the pros and cons of switching to the Amundi Prime Fund.

Lower Expense Ratio

Comparing Lion Global Infinity versus Amundi Prime US Fund, the expense ratio per annum of the latter is 0.05 percent, whereas Lion Global Infinity U.S 500 charges 0.34 after all the trailer fees. This significant difference in cost has been Endowus' focus, as they believe that cost matters the most because returns are not guaranteed.

Amundi is Exclusive to Endowus

Amundi is currently the largest asset manager in Europe and its funds are exclusive to Endowus' platform, which means they are not available on other digital robo-advisory platforms. However, Amundi funds are not approved for CPF investing yet, and they are only available for those investing with cash and SRS.

Possible Outcomes

If you are in a rising ascending market and you need to sell Lion Global Infinity funds, you are selling at a low and buying at a high later, as your Amundi funds would have been priced much more expensive due to the rising market environment. However, if you are in a declining market, you will most likely have sold off at a higher value, and with the market decline, you are buying back the Amundi funds at a lower value. While you cannot control the market, you can control the fees and cost.

Pros and Cons of Switching to Amundi Prime Fund

The pros of switching to Amundi Prime Fund include lower expense ratio, Amundi being exclusive to Endowus, and the possible outcome of buying Amundi funds at a lower value in a declining market. The cons of switching include selling Lion Global Infinity funds at a low and buying Amundi funds at a high later in a rising market, and the fact that Amundi funds are not approved for CPF investing yet.

Webull Promotional Add-On Offer

This article also mentions Webull, which is currently offering investors $100 worth of Google shares once they deposit $1,965 and make six buy trades. Additionally, investors get $8.88 worth of Meta shares for the current promotional add-on offer. Each buy trade has to be at least $100, and investors have to hold their $1,965 for at least 30 days until the stock voucher is credited.

Conclusion

Investors need to weigh the pros and cons of switching to Amundi Prime Fund. While the expense ratio is much lower than Lion Global Infinity, Amundi funds are not approved for CPF investing yet. However, the fact that Amundi is exclusive to Endowus may make it worth switching. Regardless of the decision, it is essential to remember that cost matters, and investors should always try to secure a fund with a cheaper cost to maximize their returns.