What is a Robo Advisor?
Robo advisors is a class of financial adviser that provide financial advice or investment management guidance.
Robo advisor typically allocates a client’s assets on the basis of risk preferences and desired target return, have the capability of allocating client assets in many investment products such as stocks, bonds, futures, commodities & real estate. And the client can choose between offerings with passive asset allocation techniques or active asset management styles.
Many investors financial advisory fees have become unaffordable, the higher levels of automation that robo advisor can provide means that they can offer lower fees than traditional wealth managers or financial advisers.
Many people want to start to invest in the markets but don’t want the hassle or time takes to build their own investment portfolio, but robo advisor offers a good option for these investors as the platform allow you to sit back while they invest your money in a diversified portfolio. But investors need to be fully aware that their investment can fall in value as well as rise.
ETFs are fully transparent of the assets that make up the fund, they entail low management fees and they trade daily, therefore whenever the stock exchange is open, robo advisor can adapt the portfolio in line with any fluctuations.
Robo advisor tend to have lower minimum investments than traditional wealth managers, for example client have to invest a minimum saving amount to depend upon their source of income.
FAQs
Minimize what you are looking for before deciding the perfect robo advisor, consider these questions
For investors who are just starting, you may want to consider, which requires the minimum investment to get started, basic service is also free, you can get access to a bare bone robot consultant for a diversified investment portfolio. If you want to add some of its additions to services such as harvesting of tax losses, there are additional costs, a well-known robot advisor gives a suite of diversified ETFs in line with your risk tolerance.
There is a special model in the personal-capital, its financial dashboard has more assets for all clients, personal capital provides access to licensed financial advisors and some stock-based investment services. Khushi Financial Services is best for a high net worth investor because it requires specific investment assets to get started.
Each robo advisor has its own minimum investment amount, with fewer entry thresholds or less, others require a lot of investment assets.
You can get a robo advisor with access to the financial professional If it is important for you to talk to a real person on occasion.
The number of investment choices available through a robotic advisor is different if investing in real estate investment or various equity funds are crucial for you, then some robot counselors will meet your needs. Most of them have a specific number of equity or mutual funds, but for groups of stocks, there is other access.