Robo Advisors are new investment offerings on platforms or products, usually referred to as Robo-Advisors or collectively as Robo-Advice.
The hype surrounding the robotics and Artificial Intelligence(AI) industry continues to grow profoundly as we see more and more interest from retail investors in robots and robotics stocks.
A Robo-Advisor is a method and system that automates the asset allocation of investments via a computer algorithm. In a broader sense, a robo-advisor may also include human financial advisors but only for services that require human assistance (e.g., taxes, retirement or estate planning).
The biggest benefits of using a robo advisor are:
Robo-advisors are reaching out to much smaller investors and are democratising investment advisory services by bringing a professional investment management system to virtually every investor.
What is fundamentally different about robo-advisors is their very near total reliance on technology.
As your needs change, human-based financial services can be added - and by then, some of these services may also be advanced and be an automated process.
While the Robo-Advisor space is young, the industry is quickly growing - which is great news for Investors and their access to certain products. Robo Advisors are bringing down costs and introducing some incredible tools that will change the investing landscape in profound ways.
"Any advice provided on this blog is general in nature. Readers are urged to seek their own professional advice before making decisions."