The Robo InvestorLet me ilustrate this by giving you a simple example:
| 10,000$ | Human Advisor | Robo Advisor |
|---|---|---|
| Annual return | 5% | 5% |
| Annual fees | 1.25% | 0.5% |
| Value in 20 years | 20,696$ | £24,014$ |
Even if you chose a robo-advisor with a relatively high fee of 0.5% it will still be significantly less than using the services of a human advisor.…
The main component of most robo advisor generated porfolios are ETFs or mutual funds. An ETF is a collection of securities that are traded on an exchange, just like a stock.
By investing in these low-risk funds, robo advisors are able to actually meet the returns of the market.…
Typically you will need to answer a series of questions upon signing up.
In the next step your answers are being evaluated by the robo advisor.
The data will then be used to create a portfolio and automatically invest your assets.…
A robo-advisor is a service that provides automated financial planning. There is usually very little human supervision which means that the fees are usually a lot lower than the fees a traditional (human) advisor would charge.…