What is a Robo-Advisor – Robo-Investing?




Intelligent Investing Definition and Lexicon

A robo-advisor is an online wealth management service that provides automated, algorithm-based portfolio management advice without the use human financial planners. Robo-advisors (or robo-advisers) use the same software as traditional advisors, but usually only offer portfolio management and do not get involved in more personal aspects of wealth management, such as taxes and retirement or estate planning. Robo-advisors are typically low-cost, have low account minimums, and attract younger investors who are more comfortable doing things online. The biggest difference is the distribution channel: previously, investors would have to go through a human financial advisor to get the kind of portfolio management services robo-advisors now offer, and those services would be bundled with additional services.
     - Investopedia

Robo-advisors are a class of financial adviser that provides portfolio management online with minimal human intervention. While their exact recommended portfolio allocations may vary, currently all robo-advisors employ algorithms such as Modern portfolio theory that originally served the traditional advisory community, which has used algorithmically-based automated investment solutions (dubbed in the industry as "rebalancing software") to conduct portfolio management since at least 2005. Legally, the term "financial advisor" applies to any entity giving advice about securities. But most robo-advisors limit themselves to providing portfolio management (i.e. allocating investments among asset classes) without addressing issues such as estate and retirement planning and cash-flow management, which are also the domain of financial planning.
     - Wikipedia

Synonym

Synonymity:

financial adviser, financial advisor, portfolio management, Modern portfolio theory, algorithmically-based automated investment solutions

financial advisor salary, financial planning, financial planning software, fund management, fund manager, hedge fund, investment broker, investment companies, investment funds, mutual funds, registered financial advisor, top financial advisors, what do financial advisors do

Reasons for Robo-Investing and financial advisers

Positive arguments

+ Clients want it
+ Conditions Are Favorable
+ Greater tax efficiency
+ Lower fees
+ Robo-advisory firms are creating institutional platforms that will improve the economics and expand the client mix of advisory firms
+ Robo-advisory firms are expanding the market for investment advice
+ The robo-competition will drive down custodial costs and raise service levels for advisory firms
+ The technology finally works

Negative Arguments

- Advisors need more time to prepare
- Investors want to know that their account is in "Good Hands"
- You are just an account number

An introduction to Robo Advisors

Investment Advisory: The rise of the Robots? (PDF, InvestGlass, Genève Switzerland, June 2015)


Robo-Adviser / sites / platforms / Notable Robo-Advisors

Robo-Advisors Schweiz/Deutschland / Switzerland / Swiss Robo-Advisor

#Swiss Fintech #SwissFintech #SwissRoboAdvisor #RoboInvesting

Robo Advisor Deutschland / Germany

Source: Next-Finance-Blog

Robo-advisors Links




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