Saxo AutoInvest question

R

Riches1

Member
I use Saxo's Autoinvest feature for CHSPI. The goal is to be able to send CHF to the AutoInvest account each month, and have it buy as many shares as possible on the 5th of the month. The amount I send will vary from month to month.

I activated the option "invest additional funds". But how does it work now? Why can I still input a specific amount to invest each month?

Does this option simply make it potentially invest MORE money than I stated? Or will it also invest if there's LESS money available than the amount that I configured to invest?

So for example:

I configure it to invest 1000 CHF and activate "invest additional funds".

Scenario 1: I send 2000 CHF.
Scenario 2: I send 500 CHF.

If we assume that 1 share of the ETF is 1 CHF, for simplicity, how much will it actually invest in each of these scenarios?

I guess, if this option only makes it go up from the stated amount, and not down, then it would make sense to configure it to a small amount, so it never just fully skips a month, if you ever send less money than the stated amount to invest?
 
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My understanding is that this option will only invest MORE. So, if you have it configured to 1000 CHF and you send 900 CHF; it will wait. But if you have it configured to 1000 CHF and you send 1200 CHF, it should invest as much as possible of the 1200 CHF as possible (to the limit of full shares).
 
I have also stumbled upon this problem, even if I knew the restriction of no fractional shares.

In my case, Saxo is only a part of my portfolio (IBRK is the rest), and within Saxo I invest in CHSPI, CH Gold and bonds in both 3-5 and 7-15 year versions. The percentage split is not equal. Because Saxo makes up only some of my monthly investment, I am only transferring quite a small amount (let's say 500chf/month for simplicity). This means that, with my % split and the prices of single units of those ETFs, it can only invest in 1 unit of CHSPI in the first month (ratio of percentage allocation of my 500chf vs the ETF price) and have something like 330chf left over for the next month. The next month, it will have 330+500= 830chf to invest, but it will try to reach my percentages again without considering what has been paid in previously. That means that it will again invest in CHSPI and maybe also 1 or 2 of the other ETFs, which means it is biased towards higher % allocation/lower ETF price, in this case, CHSPI.

You can see that the portfolio will quickly get out of balance and never reach your desired percentage split without manual rebalancing. If you pay in a huge amount per month, your percentage split can be more closely followed. I'm still trying to figure out how to manage this, but so far my plan would be to transfer c. 500chf/month but set the investment limit to more like 1500chf, which means it will only invest every 3 months. This would be detrimental to my dollar-cost averaging, but the % split would be more closely matched, and I can take advantage of the reduced fees with the autoinvest. Even If I don't use autoinvest and do everything manually, I would have the same problem because Saxo does not do fractional shares.

In the end, it's a shame that fractional shares are not offered in Saxo, hopefully they change this for the autoinvest feature.
 
Interesting, I did not think it would be so bad. So each month, it forgets what it did on the previous month. It's only good then if you invest each month in at least one share of each.

It seems that in this case, the best way is honestly simply to invest manually.
 
I am assuming that's how it will work, I did not start the autoinvesting yet but I think all it does is try to split each months investment based on your percentage split. You can only hope to achieve those percentages with either a very high sum invested each month, or a very low price for each ETF (CHSPI currently costs around 167chf).

Investing manually will have the same problem if I am investing in the same products and with the same monthly amount, unless I am missing something?
 
stim said:
Investing manually will have the same problem if I am investing in the same products and with the same monthly amount, unless I am missing something?
Click to expand...
If you are investing manually, you don't have to invest in the same product every month. You can invest based on your total allocation to ensure a good balance over time.
 
I want to revive this thread with a question about re-balancing of an auto invest account. I cannot find the answer on the Saxo website. If I sell shares in an auto invest account, what happens? Does the trade happen immediately or only on the 5th of the month? If it happens immediately, does the cash sit there until the 5th when it can be invested? If the sell trade happens on the 5th, will it use that cash to buy on the same day as well? If the only way to re-balance is to sell on the 5th and then invest on the 5th the following month, that is really no good.

Does anyone have experience with this?
 
Ok so I discovered there is a chat support in the saxo invest app. The ai agent gave me the wrong answer but you can ask it to speak to a real person. They told me a sale will happen immediately and will incur normal sell commissions (they are getting back to me on whether my Poorswiss credits will count towards this). Then the cash will sit in your autoinvest account until it can be invested on the 5th of the month.

I also asked them if they are working on fractional shares so we will see if they respond to that or not.
 
Autoinvest won't rebalance for me, I just have to do the rebalance calc myself and then change that month's autoinvest percentages to invest in what I want. Then I go back to my normal quarterly investment after that.

I have both the autoinvest and the self invest with the same positions in both, but due to a misunderstanding from my side how their system works, everything is all out of balance, so I need to rebalance. In any case, at some point I will need to rebalance.
 
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