Asked by Anonymous

Since there are robo-advisors now, why do people still go with fund managers or brokers? Isn't the fee much lower for robo-advisors?

New to investing, sorry if this question doesn't make sense.

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    • Luke Ho
      Luke Ho, Money Maverick at Money Maverick
      174 Answers, 291 Upvotes
      Answered on 14 Nov 2018

      Robo-advisor's don't really have much of a track record, nor are they necessarily cheaper than ETFs.

      There's also limited exposure, since robos have really only developed in the US.

      Nor is cost everything - a 3 year old can make decisions based on cost. There are still many advantages that come with fund managers or brokers that robos can't provide.

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    • Png Cheng Xi Damien
      Png Cheng Xi Damien, BSc Finance at SUSS
      63 Answers, 98 Upvotes
      Answered on 19 Oct 2018

      It's not exactly lower at robos. Robos help you invest in etfs so you're paying for both the robos mgmt fee and the etf mgmt fee. Robos are still quite new and has no track record so people are still vary. As with every product, once it reaches a growth or maturity stage, you are likely to see more retail customers taking up this product.

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