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Anonymous
I'm totally new to investing and I so I'm looking for something more passive. Don't see myself trading stocks. Hence I was more interested in starting with Robo-advisors. What are the pros and cons when investing in Robo- advisors?
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Hi Anonymous!
To answer your question, I think that most robo-advisors do the job of assessing your current financial position and recommend a portfolio strategy after reviewing your risk profile. As for the "catch", I would say that robo-advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as robo-advisors have lower management fees. You can check out kristal.AI (https://solutions.kristal.ai/seedlypost) as they have no management fees for investment amounts lower than $50 000.
Practically speaking, robo-advisors replace that human element that traditional financial consultants would provide with an AI system. Depending on your preference, that may or may not be a disadvantage/con for you. There are also a plethora of robo-advisors and some do not rely solely on AI/technological capabilities and retain the human element (see kristal.AI).
Hope that answers your query!
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Chuin Ting Weber
30 Apr 2019
CEO and CIO at MoneyOwl
Hi Anonymous,
Thank you for your questions. This is Chuin Ting, CEO/CIO of MoneyOwl. Perhaps as a p...
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Returns from robo-advisor etf is more slow and steady (it is an etf afterall so it is more diversified), so it might not be as fantastic as picking a good stock and profiting high returns in a short span of time (provided you managed to safely pick a good stock ;p)