June 23, 2016

Robo-advisory: which one is for you?

What is robo-advisory? Press a key and your investment is done? Or is it pre-programmed personal financial advice? A robo-advisor is essentially an automated service that gives you advice on managing investments and even helps you buy some financial products. The advice is generated with the help of algorithms. From registration to execution, little human intervention is needed.

Though all robo-advisory platforms give multiple choices for quick, clear and scientific investment advice, there is a difference in the final recommendation. The basic premise, however, remains the same; for your long-term goals, of more than, say, five years, it works best to allocate to equity, and into fixed income investments for near-term needs.

To choose a robo-advisor that suits you, assess what is available out there. Here’s what one can expect from robo-advisors.

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