AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Summary
- Robo-advisors are digital or automated platforms that offer financial planning services at zero human interaction or supervision.
- They have the capability to make decisions on behalf of investors on how to invest their money.
- However, investors must be familiar with the fee structures of different robo-advisors before going ahead.
Ever heard about robo-advisors? If not, continue reading. We would discuss about something very interesting for investors in this article.
Under the traditional method of investing, investors visit investment advisors in person to discuss their investment portfolio and chalk out a future strategy.
The investment advisor gathers all the information such as investor’s age, his risk-taking capability, available investment amount, etc., to arrive at a conclusion about how much percentage of his portfolio should go to what kind of investment?
Well, as the times changed and digitisation increased, human interaction in trading has also reduced. People are now taking to robo-advisors for financial planning service.
READ MORE: How to invest in stocks of foreign companies?
So, what are robo-advisors?
Robo-advisors are digital or automated platforms that offer financial planning services at zero human interaction or supervision.
A robo-adviser generally employs a survey to collect information concerning financial situations and targets of investors. Based on this data, robo-advisors offer financial service.
Source: © Robynmac | Megapixl.com
They have the capability to make decisions on behalf of investors on how to invest their money. Generally, the robo-advisor employs a survey to collect inflation about their clients. Based on this, it offers financial advice to them.
A few additional services offered by robo-advisors include goal planning, portfolio management, security, account services, and robust education.
READ MORE: Ten blue chip shares with fully franked dividends on ASX
Here are some widely mentioned robo-advisors in Australia. However, investors must conduct proper research at their end before choosing any of them.
Stockspot
Stockspot helps an investor to build custom portfolio using exchange traded funds (ETFs). Stockspot offers four portfolios – Topaz, Emerald, Turquoise, Sapphire, and Amethyst, using which investors can invest in Australian shares, global shares, emerging markets, bonds, and gold.
Six Park
Six Park is known to have some of the top-notch algorithms for investors. It has four portfolios to choose from, including - Conservative Portfolio, Conservative-balanced Portfolio, Balanced Portfolio, Balanced-Growth Portfolio, and Aggressive Growth Portfolio.
Source: © Wutzkoh | Megapixl.com
Clover
Clover is another popular robo-advisory platform in Australia. You are not charged fees for opening an account, getting advice, or even rebalancing your portfolio.
READ MORE: A look at five diversified ASX-listed penny stocks for July
Quiet Growth
This platform is known to use Modern Portfolio Theory Investment methodology to determine the level of liquidity in retirement. Quiet Growth allows investors to choose between five portfolios.
Source: ©Shimanovichs | Megapixl.com
Things to consider before trading with the help of a robo-advisor:
Clarity about financial goals
There are many robo-advisors currently operating in Australia. Investors should be clear about their financial goals before taking up services of any robo-advisor. Based on your requirements, you can choose between a retirement account or a personal trust.
Fee structure
It is important to be familiar with the fee structures of different robo-advisors before going ahead. Investors must also properly investigate any hidden charges.
READ MORE: Can APEC meeting led by New Zealand lead to a meaningful outcome?
READ MORE: Oversupply fears drag Crude oil prices; 3 ASX oil stocks under lens
