#roboadvisoryplatform

Man versus Machine

What do you prefer?

Your answer might depend on the nature of work and anticipated action.

To chop a plank into 100 identical pieces, you might use machines.

But to share your worries, you would prefer to chat with a friend rather than a chatbot, right?

With developments in Artificial Intelligence taking over several industries, including banking, many of us are worried about the “so-called” encroachment of machines in human life.

Humans are perceived to be better than machines where cognitive response is expected.

But to drive in quick results as required and with needed precision, technology has proved to be an enabler. And when both human intervention and technology co-exists, it can do wonders.

Many engineering marvels seen across the world are an outcome of humans and machines working together. In the world of financial engineering and investing, too, today machines (backed by human intellect) are playing the role of an investment adviser.

Yes, you guessed it right; we are talking about robo-investing or robo-advisory platforms.

[Read here: All You Need To Know About Robo-Investing]

Many investors complain that human investment advisers often fail to pay us personal attention. For whatever reasons, human investment advisers take a longer time to respond to queries. And some even make blunders while advising, putting their interest instead of the investor’s at fore.

On the contrary, a robo-adviser backed by human intellect to select best mutual funds for your investment portfolio based on your risk profile, needs, financial goals, and investment time horizon, can do a better job. It is free of human errors and turnaround time to provide you pointed recommendations is far quicker.

But such fantastic robo advisers, too, have critics.

The general tone of resistance is: Personal finance and investing is such a crucial topic, that can’t be ‘outsourced’ to machines. I need someone responsible for handling my investment portfolio. One who can understand my expectations, worries and limitations as well.

But our question: Didn’t you express your unhappiness about human investment advisers as well?

A Robo-adviser is simply a financial adviser who provides automated investment solutions online. A robo-adviser crafts a portfolio and/or engage in financial planning sans human intervention. By determining your risk profile, your asset allocation is charted out and investment recommendations are provided.

[Read:  How a Smart Robo-Adviser can Help You Chart Your Asset Allocation]

Unlike human investment advisers, you do not need to fix an appointment. You can use the services of a robo-advisory platform anytime and from anywhere.

You just need to signup, log in to your account, submit the necessary information for risk profiling, and recommendations based on a suitable asset allocation will appear on your screen within a few seconds.

It is for this convenience that robo-advisory platforms are attracting investors across all age groups today. With robo- advisory, your mode of investing can shift from signing and submitting paper forms to merely entering a transaction password.

Moreover, robo-advisory platforms are devoid of behavioural bias and help you track your investment portfolio efficiently and generate automated rebalancing signals for you.

How dependable are Robo-advisory platforms?

Robo-advisory platforms have made sensational debuts and there are many today. But how many of these are rendering valuable advice and added sense in investing, is the core question.

So, here are few questions you must seek answers to:

(Image source: publicdomainpictures.net)

Who are the people (founders/promoters) behind the robo-advisory platform and what's their experience in the field of personal finance -- their investment ideologies?

What are the services they offer –– whether only mutual fund related or a full-line, viz. financial planning and investment planning among others?

What is the technical competence of the team?

What are the processes and systems the robo-advisory platform follows to recommend mutual fund schemes?

What are the qualitative parameters used, if any?

Are they unbiased and independent, or working for commissions?

How transparent are they while charging you?

What is their track record?

Remember, a robo-advisory platform should put your interest at the fore. After all, you want effective recommendations and efficient service and not just a stylishly designed robo-advisory platform.

In addition, consider this:

Without any doubt, a robo-advisory platform makes your life easy, but that does not mean they will be transparent and more competent than human investment advisers.

Don't forget, machines have no cognitive abilities. It's the human being who feeds them. And the quality of the output depends on the quality of inputs.

Therefore, it is important to judge if a robo-advisory platform offers research-backed recommendations. After all, it is the question of your hard-earned money.

[Read:  How To Judge If A Robo-Advisory Platform Is Competent To Offer Sound Advice]  

Note that the boom in robo-advisory is attracting many fin-tech startups and mutual fund distributors’ too are launch their robo-investing platforms. But, as a prudent investor, you ought to judge who is really working in your interest.

Apart from research-backed recommendations, if a robo-advisory platform is really looking at your interest first, it should offer only Direct Plan to invest in mutual funds and not Regular Plan.

[Read: Everything You Need To Know About Direct Plan of Mutual Funds]

‘Direct Plans’ facilitate you to invest directly in a mutual fund scheme without routing the transaction via a mutual fund distributor, and is open for all categories of investors. A distinguishing feature about Direct Plan is the lower expense ratio (compared to a Regular Plan).

Hence, the NAV of a Direct Plan is higher than a Regular Plan. And do note that the portfolio is the same for a Direct Plan and for a Regular Plan of a mutual fund scheme.

Some of the benefits of opting for Direct Plans are:

You avoid the rampant mis-selling that goes on in the greed to earn more commissions.

The cost of investing in a Direct Plan is inexpensive owing to the lower expense ratio.

The lower expense ratio facilitates you to earn extra returns over the long run (see chart below).

[Read: How Even 1% Difference In Expense Ratio Can Make A Huge Difference To Your Investments]

Hence, if you wish to reap the sweet fruits of healthier returns with power of compounding, Direct Plans are for you. Both lump sum and SIP (Systematic Investment Plan) investments can be done in a Direct Plan of mutual fund schemes.

Honestly, every investor should opt for a Direct Plan to invest in mutual funds. They are best suited in the journey of wealth creation.

[Read: How To Create A Portfolio Of The Best Mutual Funds With Robo-Investing]

A robo-advisory platforms that offers Direct Plans to invest in mutual funds, work on a fee-based model The recommendations provided are uninfluenced by commisions and, hence, are unbiased; they put your interest at fore.

Finally, PersonalFN’s Ultra-Reliable Robo-Adviser, ‘PersonalFN Direct’, which offers only Direct Plans, is here…

It is backed by PersonalFN’s honest & unbiased research that has outperformed the S&P BSE-200 index in last 15 years by over 80 percent!

We are launching PersonalFN Direct, our highly awaited Robo Adviser, on the July 02, 2018.

You can sign up right away as a Founding Member of PersonalFN Direct and get over 80% discount on the first year subscription fee.

Also, if you take us up on this Founder Member offer right now, we have a special surprise for you.

Click Here to Know The Surprise.

Note that this offer is available till the 14th June or 1,000 sign ups, whichever is earlier. So, hurry and sign up right away!

5 Reasons to opt for PersonalFN Direct:

Reason #1: It offers only DIRECT PLANS

Reason #2: Offers customizable investment solutions based on your risk profiling

Reason #3:It brings outstanding research experience of over 15 years.

Reason #4: Minimal paperwork and ease of transacting

Reason #5:It comes at a pocket-friendly price

PersonalFN has consciously tried to keep the whole process simple.  You just got to follow these simple steps:

✔ Complete the registration

✔ Submit the necessary documents to activate your investment account

✔ Assess your risk profile

✔ Get a recommended portfolio based on your inputs

✔ Invest with a single click

And if this isn’t simple enough, be rest assured that our dedicated representatives will handhold you through the process.

Your long wait for one of the best robo advisory platform will end soon.

So, seize this great opportunity to take your financial journey on a whole new level. Embrace the new financial technology in your life and start investing in an efficient manner.

Happy Investing!

A mobile application in hand where we have to press a key and your investment is done. Whether is to take an advice from mouth or from a mobile app having large amount of a suggestions and data through a pre-programmed personal financial advice both are the same things for an investor that to work with. A robo advisory platform is used that gives you advice as your trustable distributor gives you on managing investments. From registration to execution of a new investor, little human intervention is needed the significant part done online.The basic premise of this robo application is same as for your long-term goals, of more than, say, 10 years, it works best to allocate to equity, and into fixed income investments for near-term needs that acquire time to achieve as goal limit decide portfolio assets allocation.

What do you get? The interactions are digital with your distributor as new cohort have goals decided and around financial goals such as retirement, saving, tax planning and regular investment. With this mobile app or we can say with this cost effective robo app you have access to investment management and financial planning. Most of the distributors are now on boarding their clients to robo app-as you and your distributor founds primarily mutual funds as the solution for financial objectives presently.

For using this robo app what an advisor needs to know- First of all to get started on a robo-advisory platform linked with wealth e office, you will have to create an account. It will ask you some details as, especially if allow transactions, will ask you to add bank details, Permanent Account Number (PAN) and on-boarding clients with online know-your-client (KYC) details, if buying a mutual fund simply.

Is it for you? If you are well-skilled with investment products, robo-advisors can help you make quick, easy and cost-effective transactions as a little human involvement needed in it no need to get a call of advice from a distributor physically during market volatility a perfect mobile app there to send you the reminders to take wise decision at a time.

Man versus Machine

What do you prefer?

Your answer might depend on the nature of work and anticipated action.

To chop a plank into 100 identical pieces, you might use machines.

But to share your worries, you would prefer to chat with a friend rather than a chatbot, right?

With developments in Artificial Intelligence taking over several industries, including banking, many of us are worried about the “so-called” encroachment of machines in human life.

Humans are perceived to be better than machines where cognitive response is expected.

But to drive in quick results as required and with needed precision, technology has proved to be an enabler. And when both human intervention and technology co-exists, it can do wonders.

Many engineering marvels seen across the world are an outcome of humans and machines working together. In the world of financial engineering and investing, too, today machines (backed by human intellect) are playing the role of an investment adviser.

Yes, you guessed it right; we are talking about robo-investing or robo-advisory platforms.

[Read here: All You Need To Know About Robo-Investing]

Many investors complain that human investment advisers often fail to pay us personal attention. For whatever reasons, human investment advisers take a longer time to respond to queries. And some even make blunders while advising, putting their interest instead of the investor’s at fore.

On the contrary, a robo-adviser backed by human intellect to select best mutual funds for your investment portfolio based on your risk profile, needs, financial goals, and investment time horizon, can do a better job. It is free of human errors and turnaround time to provide you pointed recommendations is far quicker.

But such fantastic robo advisers, too, have critics.

The general tone of resistance is: Personal finance and investing is such a crucial topic, that can’t be ‘outsourced’ to machines. I need someone responsible for handling my investment portfolio. One who can understand my expectations, worries and limitations as well.

But our question: Didn’t you express your unhappiness about human investment advisers as well?

A Robo-adviser is simply a financial adviser who provides automated investment solutions online. A robo-adviser crafts a portfolio and/or engage in financial planning sans human intervention. By determining your risk profile, your asset allocation is charted out and investment recommendations are provided.

[Read:  How a Smart Robo-Adviser can Help You Chart Your Asset Allocation]

Unlike human investment advisers, you do not need to fix an appointment. You can use the services of a robo-advisory platform anytime and from anywhere.

You just need to signup, log in to your account, submit the necessary information for risk profiling, and recommendations based on a suitable asset allocation will appear on your screen within a few seconds.

It is for this convenience that robo-advisory platforms are attracting investors across all age groups today. With robo- advisory, your mode of investing can shift from signing and submitting paper forms to merely entering a transaction password.

Moreover, robo-advisory platforms are devoid of behavioural bias and help you track your investment portfolio efficiently and generate automated rebalancing signals for you.

How dependable are Robo-advisory platforms?

Robo-advisory platforms have made sensational debuts and there are many today. But how many of these are rendering valuable advice and added sense in investing, is the core question.

So, here are few questions you must seek answers to:

(Image source: publicdomainpictures.net)

Who are the people (founders/promoters) behind the robo-advisory platform and what's their experience in the field of personal finance -- their investment ideologies?

What are the services they offer –– whether only mutual fund related or a full-line, viz. financial planning and investment planning among others?

What is the technical competence of the team?

What are the processes and systems the robo-advisory platform follows to recommend mutual fund schemes?

What are the qualitative parameters used, if any?

Are they unbiased and independent, or working for commissions?

How transparent are they while charging you?

What is their track record?

Remember, a robo-advisory platform should put your interest at the fore. After all, you want effective recommendations and efficient service and not just a stylishly designed robo-advisory platform.

In addition, consider this:

Without any doubt, a robo-advisory platform makes your life easy, but that does not mean they will be transparent and more competent than human investment advisers.

Don't forget, machines have no cognitive abilities. It's the human being who feeds them. And the quality of the output depends on the quality of inputs.

Therefore, it is important to judge if a robo-advisory platform offers research-backed recommendations. After all, it is the question of your hard-earned money.

[Read:  How To Judge If A Robo-Advisory Platform Is Competent To Offer Sound Advice]  

Note that the boom in robo-advisory is attracting many fin-tech startups and mutual fund distributors’ too are launch their robo-investing platforms. But, as a prudent investor, you ought to judge who is really working in your interest.

Apart from research-backed recommendations, if a robo-advisory platform is really looking at your interest first, it should offer only Direct Plan to invest in mutual funds and not Regular Plan.

[Read: Everything You Need To Know About Direct Plan of Mutual Funds]

‘Direct Plans’ facilitate you to invest directly in a mutual fund scheme without routing the transaction via a mutual fund distributor, and is open for all categories of investors. A distinguishing feature about Direct Plan is the lower expense ratio (compared to a Regular Plan).

Hence, the NAV of a Direct Plan is higher than a Regular Plan. And do note that the portfolio is the same for a Direct Plan and for a Regular Plan of a mutual fund scheme.

Some of the benefits of opting for Direct Plans are:

You avoid the rampant mis-selling that goes on in the greed to earn more commissions.

The cost of investing in a Direct Plan is inexpensive owing to the lower expense ratio.

The lower expense ratio facilitates you to earn extra returns over the long run (see chart below).

[Read: How Even 1% Difference In Expense Ratio Can Make A Huge Difference To Your Investments]

Hence, if you wish to reap the sweet fruits of healthier returns with power of compounding, Direct Plans are for you. Both lump sum and SIP (Systematic Investment Plan) investments can be done in a Direct Plan of mutual fund schemes.

Honestly, every investor should opt for a Direct Plan to invest in mutual funds. They are best suited in the journey of wealth creation.

[Read: How To Create A Portfolio Of The Best Mutual Funds With Robo-Investing]

A robo-advisory platforms that offers Direct Plans to invest in mutual funds, work on a fee-based model The recommendations provided are uninfluenced by commisions and, hence, are unbiased; they put your interest at fore.

Finally, PersonalFN’s Ultra-Reliable Robo-Adviser, ‘PersonalFN Direct’, which offers only Direct Plans, is here…

It is backed by PersonalFN’s honest & unbiased research that has outperformed the S&P BSE-200 index in last 15 years by over 80 percent!

We are launching PersonalFN Direct, our highly awaited Robo Adviser, on the July 02, 2018.

You can sign up right away as a Founding Member of PersonalFN Direct and get over 80% discount on the first year subscription fee.

Also, if you take us up on this Founder Member offer right now, we have a special surprise for you.

Click Here to Know The Surprise.

Note that this offer is available till the 14th June or 1,000 sign ups, whichever is earlier. So, hurry and sign up right away!

5 Reasons to opt for PersonalFN Direct:

Reason #1: It offers only DIRECT PLANS

Reason #2: Offers customizable investment solutions based on your risk profiling

Reason #3:It brings outstanding research experience of over 15 years.

Reason #4: Minimal paperwork and ease of transacting

Reason #5:It comes at a pocket-friendly price

PersonalFN has consciously tried to keep the whole process simple.  You just got to follow these simple steps:

✔ Complete the registration

✔ Submit the necessary documents to activate your investment account

✔ Assess your risk profile

✔ Get a recommended portfolio based on your inputs

✔ Invest with a single click

And if this isn’t simple enough, be rest assured that our dedicated representatives will handhold you through the process.

Your long wait for one of the best robo advisory platform will end soon.

So, seize this great opportunity to take your financial journey on a whole new level. Embrace the new financial technology in your life and start investing in an efficient manner.

Happy Investing!

Author: PersonalFN Content & Research Team

Tea tastes like tea whether you buy it online or from a store near you.

And selling it online or offline, through a distributor/dealer, doesn’t change the process of cultivation either.

Yet buying and selling tea online can be beneficial to all — customers, tea growers, and tea manufacturers.

Why?

It gives sellers a larger scale of operations and buyers, the convenience.

Tea growers also benefit indirectly as they stand to gain from the improved business of a manufacturer.

Who’s affected negatively then?

The middleman facilitating offline trades.

Imagine, every tea manufacturer selling tea online one day.

Wouldn’t this become counterproductive?

Buyers would be confused which ones to buy.

Connoisseurs could see this as a business opportunity and start offering buyers advice on the variety of  teas. Since their passion for quality and love for taste is eternal, they start charging a small fee for their advice. For them, receiving money from the tea manufacturer or seller is simply compromising on taste and quality.

Sensing online sales as a significant opportunity, some middlemen shut their offline business and open online shops. They have no qualms in receiving commissions from tea manufacturers.

Some of them are intelligent. Since they have been selling tea for years, they know a thing or two about taste as well. They too start offering advice on which teas to buy.

But they have no ‘passion’ for taste, just money. So they write a positive review about a tea if the manufacturer compensates them for this ‘favour’.

Guess what?

Companies facilitating online trades—mainly tech firms—too get excited about this ‘mouth-watering’ business opportunity. They have no sense of taste nor do they have any passion for teas.

But one thing they know is which tea sells more!

And they also draw conclusions on what is each tea connoisseurs’ favourite tea.

Using advanced analytics, they are trying to overcome the difficulty they face — the lack of knowledge about teas.        

And when it comes to facilitating transactions using technology, nobody can really beat them.

Similarly, connoisseurs try to up their game by upgrading their online presence.  

Now as a buyer, whom would you approach first:A middleman who newly started an online store?

A tech platform that believes tech is the answer to taste?

A connoisseur whose passion is tea?

If you decided to go with the option 3, you’ve most likely made the right choice.

What you just read about tea, is actually right about mutual funds as well.

Mutual funds always lacked the reach. And online platforms are helping them overcome this difficulty.

But you know who made the real difference to increasing the popularity of mutual funds?

Unbiased investor education campaigns by increasing the awareness of options and instruments.

Unbiased research-oriented companies like PersonalFN made incessant efforts to dispersing information about mutual funds, creating awareness among masses and guiding them on making the right choices. They are the real ‘connoisseurs.’

Distributors are slowly losing their market share. But there’s a brand new business mushrooming.

Robo Advisory!

If you ‘Google’ the word ‘Robo Advisor’ you will get some 37.7 lakh results.

Robo advisors are certainly in vogue.

What’s robo advisory all about?

Robo-advisory platforms enable you to save and invest in mutual funds in an automated manner. What’s more, there is no need to visit a branch or send physical documents to enact transactions. Everything can be done online through the internet.

Robo advisory business can offer scale, comfort, and economies of scale to all parties involved — mutual funds, investors, and the robo-advisors themselves.

Here are four criteria that make a good robo-advisory platform:

Service

Some robo-platforms may offer you only transactional services, while others may provide you with a host of offline and online personal finance offerings.

But in addition, a good robo-advisory platform should also have advanced tracking and portfolio rebalancing services. Those that offer a mix of services should be worthy of your long-term financial commitment.

Also, the platform should be backed by a team of experienced customer service associates.

If you have any query related to the investments you make or if you are facing issues when transacting, it should be resolved quickly and professionally.

Unbiased and research-backed advice

A robo-advisory platform backed by astute and comprehensive research processes help you select the right mutual fund schemes. Research plays a vital role; the fund’s performance should not be the only criteria.

Established and reputed company

As mentioned before, there is no dearth of robo-advisory platforms as the barriers to entre the market is low. While the competition is immense, you need to choose wisely and entrust your money to the best robo-advisor.

Opt for a robo-advisory platform backed by established companies in the financial services space, who have been unbiased in their approach and serving investors diligently for decades.

Robo advisory platform should be fee-based to ensure that the commissions do not influence their advice. And sound and ethical research-backed investment recommendations are imperative.

Costs

Costs play a crucial role when you are planning your investments. Different robo-advisory platforms may charge you through one of the methods below:

An advisory or subscription fee (monthly, quarterly or yearly)

A transaction fee (each time you execute a transaction through them, they charge you a fee)

A percentage of the amount invested. (Popular in the US)

Commissions earned from fund houses of recommended funds

But like in case of teas, the only problem here is when a distributor-turned robo-advisor or a tech-platform starts advising you on mutual fund investing.

Tech-firms will keep talking data, data, more data, and only data.

Analytics can also throw deceptive conclusions if parameters applied for the purpose of analysis are inaccurate or unsound.

So are tech-startups perhaps misguiding when it comes to mutual fund advisory?

A blunt answer is yes!

For tech firms, robo-advisory is just another ‘use-case’ in their lingo.

Distributors are experienced and some of them understand even the nitty-gritties of mutual funds. But then, being biased has always been a part-and-parcel of their business. “You give me commissions and I will do you a favour”, “You stop my commissions and the favours I do for you will stop. “

What’s a connoisseur real asset…

Trueness of advice and passion for taste.

That’s the bread-butter of a connoisseur.

Therefore, robo advisory platform of PersonalFN which is soon to be launched, can survive only if investors benefit from its advice.

It works ONLY in the interest of its investors.

Like any other tech-startup promoted robo-advisory platform, PersonalFN’s robo advisory platform too offers you ease and convenience of investing.

But its real strength, as highlighted earlier, is its unmatched competence in choosing the best mutual funds for your portfolio. Read about its research methodology here.

PersonalFN‘s robo advisory platform isn’t focused on aesthetics.

It concentrates rather more on functionality and ease of use.

It believes a Robo Advisor is not expected to be aesthetically pleasing.

It is simply expected to do the job intended.

A Robo Advisor’s job is to make technology work for an investor.

Robo advisory platform of PersonalFN will help you;

Save for your child’s educational expenses

Save for your international vacation

Save for future wedding expenses

Save for anything you like

Investing on PersonalFN’s robo advisory platform will be  an easy 5-step process…

Complete the registration

Submit necessary documents to activate your investment account

Assess your risk profile

Get a recommended portfolio based on your inputs

Invest with a single click

More reasons why you should invest through PersonalFN’s robo advisory platform

It can help you reap you extra returns of as much as Rs 30 lakhs in 30 years. It recommends direct plans only.

It brings outstanding research experience of over 15 years. (Outperforming the BSE-200 index by 80 percent!).

It comes at a pocket-friendly price.

So do not miss out on the opportunity to grow wealth.

Start investing!

Stay tuned!

It’s happened all across the globe, not just in India… Financial planners charged hefty fees and delivered little results. Investment advisers gave biased advice eyeing the high commissions. … Investors with nominal capital face another difficulty. As you would know, only a handful of advisers and financial planners are keen to offer them services. Otherwise, acquiring “High-Net-worth Individual (HNI) clients” is the primary objective for advisers. Would you like to know what their rationale behind this is? “All clients irrespective whether they are HNIs or small investors, want top-quality services. As a result, servicing small investors becomes a loss-making proposition.” There might be some merit in this argument, but only to a certain extent. It’s often said that retail investors in India don’t want to pay for service. This is a partial truth. If somebody ever wondered why the average retail Indian investor has been depending on friends and relatives for investment advice, it’s because professional advisers avoided him/her. Does that mean low-net investors should be left out and HNIs are undeserving? Certainly not. Technological innovations are helping address issues that concern both kind of investors . Robo-advisory platforms are likely to change the dynamics of the financial services industry in future. Does this mean investors are to trust machines more than humans? Not quite. Let’s not forget, behind any technology, there’s always a human brain at work. As it is in the case with robo-advisory platforms. In simple words, robo-advisory is the investment advisory service managed by software-based platforms that use human-made algorithms. Undoubtedly, robo-investing is a significant development that’s likely to work positively for investors. Here’s how…

Robo-advisory platforms offer more options to investors as well as to advisers. If it was uneconomical to serve the retail investor with the human-advisory model, robo-advisory platforms offer an extremely economical alternative to retail investors. Although robo advisers provide you with “programmed” advice, it’s customised to an extent, based on the response of the investors to an online questionnaire that tries to assess investment objectives and the risk profile of the client. In other words, the quality of the output (advice/recommendations) depends on the quality of inputs (investors’ question/enquiries). Therefore, if you are going to use the robo-advisory platform, you need to be careful while filling up the input sheets. The approach you follow while filling up the feedback form at a restaurant isn’t the same as filling up this form—you simply can’t be casual. As far as the investment advisories are concerned, they use robo-advisory platforms as an additional tool that helps blend their offerings. They automate the simpler processes and retain the human-advisory model for more personalised and sophisticated advice. This helps them add more value to their services and may lead to greater client satisfaction.

Robo advisers offer consistent and instant advice . Human financial advisers are human first and investment advisers later. A variety of events and developments affect them. For example, if your advisor is generally averse to risk, he/she will always discourage you from taking the risk, even if your risk appetite is high and your financial circumstances allow you to take the risk. Conversely, if your investment advisor is aggressive, he/she may sometimes encourage risks, although your risk appetite is low. Similarly, his/her response to your queries may differ depending on market conditions, business targets they may be working towards and your rapport with him/her. Unlike this, robo advisers offer you consistent and instant advice. Sure, they are developed by humans, these aren’t altered frequently. Their response is purely based on the quality of question/query you feed in. Robo-advisers won’t look at the market indices and advise you on your investments. The inherent quality of robo-advisers is that these discourage the speculative approach to investing. Similarly, they won’t be driven by any sales targets, and so won’t alter their responses with some hidden motives. And these days, instant advice is becoming popular. Whatever be the approach of investors, smart investors understand the nuances of investing and they know that it’s better to be patient rather than take any decision in haste.

Better record keeping At present, not all human-advisers offer a digital record keeping option to their clients. As a result, many a time, they as well as their clients lose the sight soon after investments are made. Timely evaluation of the portfolio is necessary. Robo-advisers make a significant difference here. They not only help you retrieve even the minutest detail of your investments they offer you a safe alternative to transact.

Things to remember before you use the robo-advisory platforms...

They are built as a standard response tool to the standard personal finance needs. If your situation is unique, you may still need one-to-one advice.

The quality of a robo advisory platform entirely depends on the understanding of the person/company developing it. If the developer or its associates are well-versed with the personal finance domain, the platform would be more effective and vice-a-versa. Therefore, before, you get hooked onto a robo-advisory platform, you must check who’s developed it and who’s going to run it.

Don’t forget to know, how the robo-advisory platform will earn for itself. If it offers you everything for free and earns through commissions generated on your investments that would be just a digital variation of existing flesh-and-blood advisers who are driven by high commissions. On the contrary, if it encourages you to invest in direct plans offered by mutual funds, and charges you a small fee for its advice, that might work as a real fee-only trustworthy advisor. If you need handholding or high level of customisations while preparing your financial plan, don’t hesitate to seek services of a Certified Financial Guardian, who is mark of trust and respect.

Last but not the least, please ensure, the robo advisory platform has invested enough time and resources in securing your data and privacy to avoid being into unpleasant situations.