Robo Advisors have been one of the most important agenda items of financial technologies recently. They are growing rapidly today. It is expected that 10% of the world's total assets will be managed by them in the following 3 years. In a nutshell, they are generally defined as “digital platform and applications offering investment advices”. However, it is necessary to elaborate on this definition a little more.
Robo Advisors have 2 important features. The first is the lack of human intervention on advices, and the second is the technological infrastructure they have. Although there are hybrid versions with human intervention and rule-based versions based on known financial models, new generation Robo Advisors are based on artificial intelligence. There is no human intervention in these. Thus, there are no emotional and irrational investment decisions. Thanks to its technology, it makes billions of calculations for millions of customers and follows everyone's advice separately. The system architecture has an infrastructure that can perform all operations in milliseconds.
Robo Advisors aims to provide investment advices which are easily accessible to customers from anywhere and digital investment consultancy services to everyone. Another important feature is that they give their investment advices regularly and continuously, not once. Advices should change over time and new ones should be offered. They aim to reach a large customer segment. Therefore, they take charge lower costs and the investment amount limit is also low. They provide significant advantages in terms of transaction costs and time.
Robo Advisors have the potential to provide better returns compared to active portfolio management as they are based on AI that runs a unique financial model. The Artificial Intelligence (AI) prevents human errors and irrational financial decisions. It reviews large volumes of data and discover specific trends and patterns that would not be apparent to humans.
Developing profitable investment strategies is getting harder day by day. Many investors have had bad experiences due to financial crises. Even if the financial markets are recovering, there has been a serious decrease in the number of investors in almost all age groups. On the other hand, many investment alternatives and new products have emerged and it has become difficult to choose among them.
Customers do not feel safe and comfortable during investment decision-making process. In this complicated process, they expect their banks, brokerage houses, portfolio management and pension companies to understand the financial needs and to provide appropriate solutions. They need help to choose the right investment products, create strategies, and make portfolio changes.
Selecting right investment products, making portfolio diversification among hundreds of mutual funds and stocks, giving buying and selling decisions, following up portfolio performances and providing better returns are the important issues in investment decision-making process.
At this point, Robo Advisors are the solution.
More Wealth helps investors, market professionals and customers who want to manage their savings and investments. It empowers them with regular tailor-made investment advices. It doesn't provide investment advices once. The process is dynamic and follows up the market continuously. Because of them, advices changes by time and they are regular. It doesn't evaulate customers with only risk profiles analysis. Besides, investor behaviour and psychology tests are conducted which makes more objective analysis. It helps them to create diversified and optimized portfolios.
The Global Robo Advisor, More Wealth, is based on artificial intelligence which runs a special financial algorithm. It keeps improving in accuracy and efficiency. It makes all transactions and operations ultra-fast. As a result, it generates significant better returns.
Now, wealth management and investment decision-making process are super easy. Be ready for the top quality investment service with full confidence.