By collecting information about clients’ financial positions and future goals, Robo-advisors can advise on the right investments and automatically allocate funds in line with investment goals.
Simon Lister, IFA and Contributing Author of Investing Reviews, an independent comparison review site, commented on the next generation of financial planning technology.
Lister believes that one of the easiest ways to get passive income from investing is to use robo-consultants, whose popularity has risen significantly over the past few years.
“First, you fill out a small survey to determine your investment strategy and risk profile, and then the robot advisor will start investing on your behalf while you are resting,” he said.
However, the lack of empathy and “human involvement” that many believe is key to making the right investment decisions is the criticism of this technology. On the other hand, the low cost and ease of use, coupled with the current availability of Robo consultants, and their continuous improvement means that the next generation of investors is likely to opt for this particular technology.
While AI is incredibly market-tuned and capable of analyzing customer data, we cannot ignore the fact that some are not yet personalized enough. Therefore, Robo advice is ideal for smaller, unbiased long term investments.
Investing with arty:
arty’s portfolio advice is an extension of passive investing. The cost is low and fixed (EUR 25 – 50 / month) and the portfolio is always 100% invested, long-only. However, the secret ingredient is targeted allocations i.e., actively changing the weights of the constituents in the portfolio to control volatility and maximize returns. These weights are selected via an advanced Machine Learning algorithm and have been shown to deliver better risk-adjusted returns than the equivalent index (see homepage).
With arty, you can benefit from the application of the latest financial technology without worrying about missing an opportunity or paying excessive fees.
- arty uses AI and big data to generate profit in any market situation,
- arty helps you to earn up to 25% annual returns,
- arty offers a selection of professional portfolios depending on your risk profile,
- arty helps you combine ETFs, which are great for reducing risk and creating stable, reliable returns.