(I write this post in response to this question, which has been asked too often.)
What’s a robo advisor for investments?
A robo advisor is a service with a significant use to technology to help advisors manage their money and investments. It uses pre-defined algorithms to select and recommend investment portfolios. It asks the user several questions, based on the answers of which, it defines a mix of equity, debt and cash. Subsequently, it offers one of its pre defined algorithm driven portfolios.
A robo advisor also keeps a track of your portfolio progress and does automatic rebalancing of your investments to maintain the asset allocation.
There is no or very little manual intervention when you use a robo advisor. The robo does everything with your money including using tax saving methods and generating the most optimum return. And that is touted as its biggest benefit.
Emotions and irrationality are replaced by a scientific process of investment portfolio management and is expected to yield better results for you.
So, how many robo advisor offerings are there in India?… [Continue Reading]