Podcast 23 – Robo-Advisors, A Snapshot

Wealth Management, Digital Revolution, Technology

Qiuyan and Michael talked a lot about Robo-Advisory and based a lot of their discussion on an article written in Wealth In Asia…

In general terms, the robo-advisory model offers investors automated investment strategies that factor in one’s risk tolerance and time horizon. Algorithm-driven processes then invest and manage your portfolio.

Robo-advisors have gained in popularity since they first launched a decade ago, with more platforms and Fintech companies arriving on the scene to take a slice of the pie away from traditional wealth managers

As the involvement of expensive human financial advisors and portfolio managers is reduced, costs can be a fraction of the amount charged by traditional wealth managers. Betterment, a top robo-advisor based in the U.S. that has US$11 billion in assets under management (AUM), says that its investment model can increase returns by 2.66% a year.

Fintech, Podcast, Robo Advisor

Another major advantage of robo-advisors is a lower minimum investment requirement. Investors can make a start with as little as a few thousand dollars. This has provided younger, tech savvy retail clients with access to wealth management services traditionally reserved for the more affluent.

Written by

Sha Osman

Last updated on

June 11th 2019, 10:52 am

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