AN ERA OF AUTOMATED INVESTMENT

A new breakthrough has been made that focuses on individual investment strategies and benefit goals. Technology has infiltrated finance management, as it has in any other area, and they have set up an autopilot for investors who work on a pre-programmed algorithm and conduct financial planning for their clients. SigFig, SoFi, TIAA, and a number of other Robo advisors are among those who have contributed to this project.

IDEA OF THE PROGRAMMED SOFTWARE IN INVESTMENT WORLD

"Where there is a will, there is a way" or "invention is the mother of necessity," then there could be a need for a robotic perspective over financial or investment managers, or it may simply be a new technological experiment with conventional finance management methods. Comparison is needed to draw a conclusion:

Why use a Robo Advisor instead of a human financial advisor?

CHEAP: Robo advisors are a boon for low-cost investors who do not want to pay the high fees charged by conventional human advisors. Index funds have lower costs and lower expense ratios, which seem to benefit investors. They only take 0.25 percent to 0.50 percent of the total volume handled on a yearly basis.

STRUGGLES WITHOUT AN APPOINTMENT:

This automated investment service is available at all times, while seeking advice from investing managers requires scheduling an appointment on weekdays during working hours.

THE BRAIN SUCCESSES OVER THE EMOTIONS:

Machines, as we all know, do not deal with emotions, but simply human nature or self-instincts with over-excitement or nervousness when investing do not disrupt the investing criterion. The automated systems' mathematical logic makes the investments here.

The definition of the traditional over the technological

MEN ARE GOING TO BE MEN:

Robo advisors, as we all know, work with algorithms created by data scientists, financial advisors, or investment managers, and they require human involvement. Since artificial intelligence will remain artificial, timely human monitoring and oversight is still needed to keep a check on its functions.

BRAIN WITHOUT CUSTOMIZATION:

These computer-based investors follow pre-determined mathematical plans and do not need face-to-face assistance. Investment plans, customized portfolios, and tax and real estate planning are not possible to change with Robo Advisor.

Lack of Personalization:

One thing that almost all Robo-Advisors lack is a personal touch. A human advisor, on the other hand, will consult with you, talk with you, assuage your fears, and assist you in gaining a better understanding of how financial markets operate.

Lack of Judgement:

Asset managers will also have an advantage over their rule-based peers who fail to evaluate the whole business model due to their sense of judgment and the value investing that comes with their expertise and insight into portfolio management strategies.

Low Profits:

Rebalancing that is automated and based on rules is less complex than it seems, but it provides little benefit to clients. Rather than the market or Robo-Advisors, buying the right equities at a reasonable price would provide you with better long-term returns.

The area of Robo-Advisory is still in its infancy. It has proved to be a good low-cost alternative to traditional wealth management, but it falls short in certain areas, making it a secondary choice for complex investments. Human advisors, on the other hand, carry to the board knowledge and skills that are still more important than automated software.

Conclusion:

While technology has proven to be effective in the investment sector with ROBO ADVISOR, we prefer to rely on our traditional human experience, which works in conjunction with their expertise. Human efficient efforts are still needed for return strategies based on market conditions. With the combined expertise of the two, it can be inferred that the investment industry has come a long way with automated investments, but we are willing to see more advancements in this field in order to generate more money and get the most out of it.