Robo-advisor
Automated platform offering algorithm-driven investment management services.
Detailed Description
Robo-advisor
What is a robo-advisor?
A robo-advisor is an automated platform that provides financial planning services using algorithms with minimal human intervention.
How do robo-advisors determine investment portfolios?
They gather client information through online questionnaires to assess financial situations and risk tolerance, then create tailored portfolios using algorithms.
What are the primary benefits of using robo-advisors?
Robo-advisors are cost-effective, provide 24/7 access to investment management, and can execute trades quickly and efficiently.
What limitations do robo-advisors have compared to traditional advisors?
Robo-advisors may lack personalized service and nuanced advice for complex situations and may not adapt as effectively to sudden market changes.
Who is the target audience for robo-advisors?
They primarily target younger, tech-savvy investors seeking low-cost solutions and those with straightforward financial needs.