Robo Advisory – Concept, About Robo Advisors, Features, Services, Charges, Evaluation, & more
About Robo Advisors or Robo Advisory Platforms
What is Portfolio Rebalancing in Robo Advisory?
Should you hire a Robo advisor?
How do Robo Advisors earn money?
Top Features of Robo Advisory Platforms
24*7 Accessibility – The Robo advisory platforms are ideal for almost all investors irrespective of the amount of wealth. The best part is it is accessible 24*7.
Minimum Costs – The fees are reduced drastically as there is no human intervention. Above all, the Robo advisors are way cheaper than social financial planners.
Transparency – The Robo advisors are transparent in terms of fees, portfolios, and trades.
Efficiency – All the changes in the portfolio are efficient and effective.
Targeting Small Investors – There are several Robo Advisors that tend to target small investors, and they are potentially wealthy.
What services do Robo Advisors offer?
How can you evaluate a Robo Advisor?
How much do the Robo Advisors charge?
Pros and Cons of hiring Robo Advisory Platform
Pros of hiring Robo Advisory Platform
Minium fees– Before the introduction of Robo advisors platforms, investors were quite fortunate to receive professionally managed investment assistance for 1% of assets.
Significantly, the robot’s paradigm has changed. There are several models available for cost-conscious consumers.
Prize-winning investment model– Almost all Robo-advisor’s algorithms rely on Nobel Prize-winning theory to drive the majority of the models.
Generally, the best practices investment theory works hard to build an investment portfolio with maximum return for minimum risk.
Access the Robo Advisor services through a financial advisor-It is quite famous for typical financial planning services to offer white label Robo advisor platforms for the users as this is a cumbersome task.
The professional finance needs to spend more time with the clients as they have to address estate and financial planning problems.
Besides giving the opportunity to minimize the cost, the services also offer a personal touch.
Enhance the market for financial advice– A few consumers or young investors having low net worth consider financial advice from professionals.
Robo Advisors tend to increase the current market of financial advisory clients. It is mainly because they charge less and are also easy to access.
Low minimum balance– It is beneficial for investors with a minimum net worth to get professional Robo advisory management.
To get started, Robo advisors just need Rs.10,000 to Rs15,000. Additionally, there is no charge for personal capital.
Pros of hiring Robo Advisory Platform
No complete customization– You are way more than just an investment portfolio as you have many goals.
Though Robo advisors will allow you to edit and set your goals through their financial planning software, they also have some money-related issues which might benefit from a chat with a human advisor.
Above all, unlike compassionate advisors, the Robo Advisors won’t hold your hand and talk to you about the investments that are most likely to work.
They will bash the investor’s price schedules– The Robo Advisors are most likely to have low price schedules, but it is not right for all.
On the other hand, it is also not true that all financial advisors are expensive.
But there are financial advisors who charge as less than 1% of AUM on their services, and it is way less than the majority of the Robo Advisors.
You can also hire advisors who charge an hourly rate or a fee for use, or they can combine both leasing Robo advisors and their service.
Cannot meet face to face– if you want to maintain a relationship with your financial advisor, then you must hire human, financial advisors instead of Robo advisors.
It is mainly because the robots don’t have an office where you can walk and talk to the advisor.