Robo advisors are the new thing when it comes to investing. Simply put, robo advisors are automated investment management software. Unlike actively managed funds, they are using algorithms to help you choose how to allocate your funds when you invest.
Robo advisors take away the emotional part of investing, so they can be better than fund managers, since they purely rely on numbers to make investing decisions.
Another advantage is robo advisors are cheaper than actively managed funds. Check out this robo advisor comparison table to find out the best robo advisor for you, depending on how much you are able to invest, and where you currently hold the funds. Some of them require a low initial deposit, or none at all.
This review of one of the most popular robo-advisors shows you can get started with as little as $500.
The annual fee is 0% if you invest less than $10,000. This is great news for newbie investors who just want to get started with an automated platform. Some of the robo advisor also offer human advisors if your portfolio is over a certain amount.
That low-cost, easy approach to investing has become very popular lately, because people like you and me can build a portfolio in just a few clicks. Remember the movies where people had to call their brokers during a crisis and yell “seeeelllll!!”. These times are over, now you can trade and invest from the comfort of your own home.
You set up your account, define the level of risk you are willing to take, buy stocks and shares according to your goals, and you’re all set.
The low fees can help you build wealth faster. Robo advisors are counting on the huge amount of business they are drawing to make a profit. Unlike a human portfolio manager who can only manage so many assets.
Robo advisors are a great way to complement your traditional investing strategies, or to get started as a newbie investor.
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