All of us wish our life to be easy. Imagine a scenario where a robot cooks your food, cleans your home, and then the appeal of a superior robo advisor would be hard to ignore. Yes you cannot expect these services to be a pet set for windows, but they go on to achieve is something valuable, an easy way to keep invested in the domain of mutual funds.
Definition of robo advisory?
Imagine such a situation where all your investments take place with a single click. This would not have been possible a few years back but with robo advisory it is possible. An automated service where programming occurs in a manner where financial advice is provided. This is in relation to the financial products you are about to purchase and how the process can be executed. In fact this process is undertaken with the aid programming occurs in a manner where financial advice is provided. This is in relation to the financial products you are about to purchase and how the process can be executed. In fact this process is undertaken with the aid of scientific algorithms of various combinations and permutations that is subjected to be tested in various market cycles.
There would be no dispute among all of us that financial sectors is one of the fastest fields undergoing a lot of transformational change. In the midst of all this robo advisor end up incorporating a form of technology that is going to leave a mark on the financial market in various ways. This is by rolling out advice on mutual funds and even minimizing advice on cost and interest. By this form of technology, mutual fund advisors end up offering investment management and financial advice with less intervention. All due to the fact that it is developed on the model of algorithms.
The main reason why this class of body has emerged is to cut down the gap on human interaction and even the role of pre directed advisors have to be trimmed. In the field of wealth management robo advisors are considered to be a major breakthrough in order to provide services at a low cost. This is in line when a comparison is drawn with the other type of financial instruments.
Are there any differences between traditional advisory and robo advisory?
Robo advisors leave behind the traditional advisors because of the following points
- The costs of administration are less and to grab financial advice investors are needed to pay low sum of money
- It is possible for an investor to track and even monitor their portfolio without any hassles
- Convenience in the mode that an investor can transact round the clock as per their own reliability
- Perhaps the point you can afford to miss, robo advisors provide an investor with a platform to transact and purchase mutual funds via an online mode.
Guess you too might be having the same set of opinions. A lot of people are of the opinion that since mutual funds invest in stocks there is no need to directly end up investing in them. They can avail the services of a broker who can guide them on how to stay invested in funds. Mutual funds serve as a viable investment option.