The robo advisory industry is revolutionizing the way investors do business, and certain bigwigs have stepped up to the plate to make it a seamless transition from their regular financial transactions. The industry is worth over $222 billion, and the forecast seems to be in favor of these newfound financial advisors. For investors, there are a number of considerations before they take up an investment product, and it’s about more than just the potential return.
Robo Advisory Bridges The Gap Between Newbie And Advanced Investors
One of the biggest advantages for investors who are new to the game is that robo advisors do predictive market analysis and adjust their spread accordingly. For clients, this means the opportunity to capitalize on market conditions whether they are good or bad. With the potential bear market looming on the horizon, investment powerhouses such as Betterment, LLC are gearing up to make the most of the potential downturn. By launching savings products that produce a slightly less risky environment for investors, these investment behemoths can challenge the banks for a slice of the pie.
Lower Fees For Investors
One of the benefits of opting for a robo advisory service, is that the automation doesn’t require much human intervention, which means lower costs for the financial institution. Wealthfront takes this a step further by offering their client base the robo advisor service at no cost. This means consumers have a greater portion of their investment working for them, whether they opt for an aggressive approach or an automated investment strategy with lower risk, such as those used to build education, long-term, or retirement funds.
Accessible Platforms For Investors On The Go
Part of the reason investors are amped to get onboard the robo advisor train, is that the service is simple and convenient. They no longer need to pop into an advisor’s office to discuss market conditions, instead, they can rely on robo advisors to make critical changes when they need to. What’s more, the entire process takes place online without any need to visit a brick and mortar institution. This type of investment ensures that investors who don’t have the knowledge or time to invest have access to the action.
Robo advisors bridge the gap in the market for entry-level investors who simply don’t have the money, time, or knowledge to do serious investments. It also creates a little bit of friendly competition for competent investors who want to test their mettle against a machine.