How much money do robo-advisors make for us? My reits can earn 6-8% per annum Can robo-advisors make the same percentage or higher than personal investment?

This is a pretty common question when using a roboadvisor - what exactly would the returns from a roboadvisor be like? Like Elijah mentioned below, it's a common but dangerous perspective to adopt :") The main appeal of a robo is to have a portfolio that gives you diverse exposure handed to you. The time horizon for current local roboadvisors is too short to compare to something as "historical" as REITs, but judging by the backtesting done by Stashaway, robos are expected to do better than traditional investment methods (but this report was done by Stashaway so do your due diligence as well!!). This guide might be helpful for you, I hope this helps!

Hi anon,

It's actually a very dangerous view to think that a robo-advisor (or any advisor) for that matter, will make money for you. Once you are talking about investments, nothing is guaranteed.

Your REITS may earn 6%-8% per annum, but is that your total return, or just your dividend? Look at the case of Eagle hospitality Trust or Lippo, the yield is decent, but the price has plunged. Conversely, if you had Keppel DC REIT, your yield is low now but price appreciation would make your total returns higher than 6%-8%.

The key thing about a robo or a human advisor is that their goals are generally to 1) automate the process 2) force you to have a strategy based on their recommendations after your analysis and 3) in the case of a human advisor, also manage your emotions especially during periods of high market volatility. There are probably more reasons, but these come to mind.

So depending on the risk profile you specify to the robo, your expected returns could easily be more than what you get. But you will probably have to live with increased volatility. There's always some level of trade off.