Did the thought of someone being there to carry out your task ever cross your mind? That did not just end there. Carrying out your task meant someone wise, trustworthy, and experienced enough to work on all our necessary tasks. Read this blog – All about robo-stock advisory to know there is someone to even manage your portfolio!
For many in adulthood, this wish just got transformed to ‘someone able to manage their finances effectively’! Well, the good news is, it isn’t just a ‘wish’ anymore.
With the advent of technology and automated investing facilities available, you no longer need to worry about your money matters. Wondering how? Robo advisory is the ultimate solution!
What is a Robo stock advisory?
A financial advisor who provides automated investment solutions online is a robo-advisor. It means you no longer have to appoint a financial planner in person to design and monitor your investment plan. Best AI stocks in India is possible for ai trading under robo advisory – your portfolio is in auto-pilot mode.
Robo advisory platforms are digital advisors who provides portfolio management and financial planning services online, with constant improvising technology and enhancement techniques the human intervention in reducing considerably.
Do you remember the time when internet banking was introduced? It was completely unwelcome. But now, it is the most hassle-free and favored way of banking. Today, AI-based stock trading is like internet banking was viewed a decade back. In the coming days, your attitude toward robo-investing would be the same.
Robo Advisors Vs Human Advisors
You have a financial advisor, why should you choose a robo? Let us understand what robo-advisory brings to the table. Remember the good old days when you would receive a text message over your cell phone?
There was a time lag and high cost involved in this kind of communication. Similarly, the basic difference between a robo and a human advisor is their quick response, fee structure, etc.
Advisory Fees
If you are an investor who wants to save on the cost of investing, then you must invest via a robo advisor. For years, many have been saving and investing by following friends’ advice. Is it helpful? We all know the answer to it. If you genuinely want to save money, opt for AI-based stock trading in India.
Robo-advisors can lower costs, and therefore work out to be relatively cheaper than traditional financial planners. As you would know, financial planners usually charge hefty fees and deliver little results. Robo-advisors can save a huge amount of costs due to little or no human intervention.
Recommendations
Human financial advisors are human first and investment advisers later.
A variety of events and developments affect them. For example, if your advisor is risk averse, he/she will always discourage you from taking the risk, irrespective of your risk appetite.
Similarly, their response to your queries may differ depending on market conditions, business targets they may be working towards, and your rapport with them. Investment advisors may also give biased advice eyeing the high commissions.
Unlike this, robo-advisors offer you consistent and instant advice. They won’t be driven by any sales targets. Hence, they won’t alter their responses with some hidden motives.
Indiscriminately Provide Service
Robo advisors do not provide service according to the investor’s net worth. Investors with nominal capital often feel dejected. It has been observed in the past that very few advisors are keen to offer their services to investors with a small asset base as acquiring High-Net-worth Individual (HNI) clients is their primary objective.
Robos, on the other hand, do not discriminate against investors on their asset size. Many robo platforms let you even start a SIP of Rs 500.
Omnipresence
With robo advisors, you receive investment advice instantly and consistently. Because they are omnipresent- present everywhere at the same time. Human advisors, on the other hand, might be available only during their working hours. Like everyone else, they go on holiday and have their own calendar.
Hence your investment transactions are dependent on their availability. With AI stock portfolio management, your portfolio is under the supervision and tracking 24*7.
Better Record Keeping
At present, not all human advisors offer a digital record-keeping option to their clients. They follow maybe a spreadsheet or diary to keep a record. But these are not secure ways of record keeping. As a result, many a time, they may lose track of investments.
Robo-advisors make a significant difference here. They help you retrieve even the minutest detail of your investments on your dashboard. Once you have created your investment plan, your robo-advisor will keep it on track.
Suitable For All
Robo advisory platforms can be used by investors as well as financial advisors. As far as investment advisories are concerned, they can use robo-advisory platforms as an additional tool that helps blend their offerings.
They can automate the simpler processes and retain the human-advisory model for more personalized and sophisticated advice. It helps them add more value to their services and may lead to greater client satisfaction.
Conclusion
Robo advisory platforms are likely to change the dynamics of the financial services industry in future. Does this mean investor is to trust machines more than humans?
Not quite. Let’s not forget, behind any technology, there’s always a human brain at work. Undoubtedly, robo-investing is a significant development that’s likely to work positively for investors. Robo-advisors certainly may be a compelling alternative to much traditional advice.
And in many cases may be a step ahead of such sources of advice due to their lower costs, well-grounded investment methodology, and alignment with you financial interests. At the same time, you need to acknowledge that not all robo-advisors are perfect. Their advice may not be fully customizable. Hence, the robo-advisory service you choose needs to be well equipped to care for your investments and financial goals.