Roboadvisors, or ‘robos‘ for short, have disrupted traditional wealth management especially for the mass market and retail investors – thanks to their client-centric platforms, ease of access, convenience and low-cost approach to investing.
Aided by technological advances in back-office automation and artificial intelligence, robos use algorithms to help investors select an ideal portfolio tailored to an individual’s risk profile.
Some robos also complement the digital process with a financial adviser for that unique human touch, bringing a hybrid solution to wealth management to meet the increasing demands of today’s retail investors.
In this article, we explore why retail investors should consider using robos to help manage their finances.
#1 – Robos simplify the investing process
Robos simplify the investing process by using technology to help profile an individual’s risk tolerance, determine a suitable asset allocation and offer a diversified range of portfolios for any investor to get started in investing.