Robo Advisor
A Robo Advisor is an automated online platform that provides financial planning and investment management services with minimal human intervention. These services typically involve algorithms that assess an individual’s financial situation, risk tolerance, and investment goals to create and manage a personalized investment portfolio.
Examples of Robo Advisors include:
- Betterment: Offers personalized financial advice and portfolio management, focusing on long-term growth through diversified investments.
- Wealthfront: Provides automated investment management with features like tax-loss harvesting and financial planning tools.
- Fidelity Go: Allows users to open an account with no minimum balance and offers automated investment strategies based on the user’s goals.
Use cases for Robo Advisors include:
- Individuals seeking a low-cost investment solution without the need for traditional Financial Advisors.
- New investors wanting to enter the market with limited knowledge of investment strategies.
- Those looking for automated portfolio rebalancing and tax optimization strategies.