Like other financial management, robo adviser is online financial management software that provides digital business advice regarding your investment including automated, algorithm-driven financial planning services without involving human assistance.
Functions of Robo Advisor
You can avoid expensive financial service by using this one. Investor make wrong emotional decisions depending on high market ups and down and gut feelings and get poor results but by investing in this financial advisor software, you get good outcomes because it does not do such kind of mistakes.They automatically select investments and automate a portfolio for you and move it to target allocation and make trades when your funds are invested.These advisors has the reasonable service fee, and you pay used investments charges it may depend upon fixed monthly fee or percentage of assets
Some Robo advisors help you grow your accounts with their additional software tools. But they have no planning advice on saving and how to allot investments in other accounts. If you are near retirement the allocation tools of it may not support your finances for the withdrawal phase, for this purpose you may expect some professional retirement income planner.
You can get popular robo advisors, and they offer more human assistance like Asset Builder, Betterment, Personal Capital, Market(Riders, Rebalance IRA, Schwab Intelligent portfolios,sigfig, and wealthFront, etc. These advisors offer Assets allotment of your stock, bond and other investments, automated rebalancing, tax loss service for taxable accounts and educational investment tools including retirement and educational planning.
Advantages of Robo Advisor
Betterment and many such advisors’ services work on the base of Nobel Prize-winning investment theory to drive their models. By using this theory, this advisor gives the great return to clients with an investment portfolio on smallest risk. Those consumers who are younger investors and have lower net worth and cannot have professional advice, these advisors help them by their easy access, by expanding the market and smaller fee models for professional financial management and DIY model. Different types of low fee robo advisors have low fee ETF portfolio and many paths to professional asset management for different types of clients.if you are interested in other investment theme, then Motif 151 give idea base portfolios
So by small balance you can get professional robo advice and by using zero balance technology Folio investing and Wisebanyan, Betterment get progressing in the market. You can get access to Some robo advisors with $1000 to $5000 balance.
So to get investment guidance of your choice selects the robo advisor.