Anyone planning to invest money today in India can use the help of robo advisors in India. That being said, they are far more suitable for novice or new investors who have limited knowledge and experience about the financial market. Any experts should either rely on a tested traditional advisor approach, or simply do it yourself.
Robo advisors in India have been popular for the last 1–2 years and for 3–4 years in developed markets. As the name suggests, robo advisors are advisors that offer services automatically based on a specific set of rules and algorithms. They are extremely sophisticated, easy to use online tools and also product transaction enablers. They are programmed to take specific inputs and generate output. Indian robo-advisors have successfully raised huge funds from venture capitalists.
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During the use of robo advisor, you need to answer specific questions such as current situations, goal, risk profile, date of birth, a time period of investment etc. Based on data provided as inputs these advisors suggest investment portfolios. The advice given by robo advisors are divided into multiple parts such as tax planning advice, insurance advice, health insurance planning, investment advice etc. Their suggestions often differ from traditional financial advisors. As traditional advisors usually deep dive into providing complete financial planning advice, the cost associated with a traditional advisor is higher compared to robo advisor as it eliminates human error. But beware, robo advisors are not programmed for an extraordinary situation or financial crisis.
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These are the 10 best Robo Advisors in India:
Finpeg is first up on our list of robo advisors in India. It is an investment robo-advisory platform that deals exclusively with advisory and selling of mutual fund strategies and schemes. This advisor offers cutting-edge investment strategies with a proven track record of offering superior returns and phenomenal downside protection.
Finpeg is your one-stop solution for all mutual fund investment needs, be it a recurring monthly investment (NOT SIP!), a one-time investment (NOT LUMP-SUM!) or a regular monthly income from your mutual fund investments (NOT BALANCED FUNDS!).
Finpeg guarantees you that they are Robo Advisors not just some “Online Mutual Fund transaction Platform”. Instead of pushing you to buy Mutual Funds Online, Finpeg is a robo-advisory service in the truest sense. For starters, they do not sell plain vanilla SIP to everyone. They have customized investment strategies that are built to suit your every investment requirement.
Importantly, they build investment algorithms that are geared towards delivering stellar returns at phenomenally low risk. A lot of intelligence that can be applied to your investment approach and then get a machine to automate that approach. And that is precisely what they do at Finpeg.
Second on our list of robo advisors in India is 5nance. They are an integrated, one stop shop for all your financial needs. Consider it as your holistic financial partner. All your money management needs such as budgeting , expenses tracking and savings optimization. Do a comprehensive financial planning and get investment recommendations. Track your portfolio and optimise the returns. Invest at no extra cost. You don’t have to pay anything for thier services. There are no hidden charges too.
One of the best features of 5nance is that it gives you recommendations on where to invest. They provide prudent research on various asset classes that helps you take an informed decision for the correct investments. You have the option to compare products across asset classes to make smart investment choices.
Fisdom is an automated investment service provider. They manage a personalized online investment account for you that is accessible anytime and anywhere from your desktop, tablet or mobile, fisdom helps make your money work for you. They provide personalised investment recommendations without asking you long, intrusive questions. As they understand you better over time, their recommendations can get further tailored to your situation. They also provide a seamless interface on the app and the web to transact and consummate these recommendations.
FundsIndia is India’s friendliest online-only investment platform. Built on robust technology, FundsIndia gives users access to mutual funds from leading fund houses in India, stocks from the BSE, corporate fixed deposits and various other investment products, all in one convenient online location. In short, FundsIndia is your one stop shop to build wealth.
By creating a FREE-for-life investment account, customers can get access to a wide array of investment products like mutual funds from all Asset Management Companies (AMCs), stocks from the Bombay Stock Exchange (BSE), Fixed Deposits from companies, and more. The platform is successful for its unique value-added services such as Flexible Systematic Investment Plans (aka SIPs), Value-averaging Investment Plans (aka VIPs), award-winning expert investment advice, Money Mitr, and more that help investors get more out of their investments.
MoneyFrog is a popular Chinese term for Prosperity & Wealth. This mythical creature is said to appear during the full moon, offering houses or businesses a lot of good news. Almost always, the nature of this good news is understood to be wealth-related. The company has thus drawn inspiration from these Feng Shui beliefs, enabling MoneyFrog to attack and protect their wealth and guard themselves against bad luck.
They have more than 15 years of experience in the financial markets, the know-how and proficiency in most of the financial products and asset classes. Having worked with some of the leading financial firms, building their assets and protecting their securities, has given them the skill that is their bedrock today.
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Goalwise is a Mutual Fund investing service which helps you plan and invest for your financial goals, be it saving for your retirement, buying a house or just building your wealth. Although a lot of advisory platforms provide only commission-laden mutual funds, Goalwise lets you invest in zero-commission direct plans for free – no transaction charges, account fees or any other hidden charges.
They consider your age, your savings, a suitable risk profile, target amount and time horizon for the goal to generate a personalised goal plan for you. The plan consists of how much you need to invest every month, the Mutual Funds you should invest in and what the asset allocation (debt and equity) should be.
Their robo advisory engine (GoalSenseTM) continuously monitors your investments to ensure you are on track to achieve your goal making them one of the best robo advisors in India to consider.
This is an integrated platform for Stocks, Mutual Fund, Insurance & Advisory. For robo advisors, with just 3 steps you get a customized smart investment plan.
Arthayantra is the world’s only Full Service Robo Advisor providing comprehensive, affordable and customized financial planning in India. Equipped with a tax saving strategy, the right insurance advice, a platform to invest in mutual funds and tracking your goal of buying a house, ARTHOS has it all. ARTHOS is the robo advisor for money management.
Arthayantra also has a dedicated team of Certified Financial Advisors and servicing agents who will assist you at every step of your financial journey, making it one of the best robo advisors in India.
Angle Broking – ARQ
Rounding off the list of the best robo advisors in India is ARQ. It is a revolutionary automated investment engine that takes emotional bias out and let’s you harness the maximum performance of asset classes in your portfolio.
ARQ uses nobel-prize winning Modern Portfolio Theory, that gives you the best asset allocation advice across major asset classes like equity, gold & debt mutual funds after understanding your risk preferences.
ARQ uses advanced technology to process billions of combinations to create models that have superior predictive power, helping you invest in the stocks & mutual funds that have the highest future performance potential.
So, these are the best robo advisors in India, choose from this list according to your personal financial goals. And remember, what works for someone else might not for you, so do some thorough research before investing your money.
Robo advisors are a great tool for investment. The financial services provided by robo advisors are automated and algorithm driven. The human supervision element is minimal to none. Good robo-advisors will feature easy account setup, robust planning, supportive account services, efficient portfolio management, strong security features, attentive customer service, comprehensive investment based information, and low cost.
Here is a list of some of the best robo advisors available today:
Wealthface was founded in July 2018, with the aim to form the planet of finances accessible to everyone. After working for over a decade within the financial sectors of Dubai and Montreal, Bilal Majbour (founder & CEO) developed a priority about the way the investing was practiced by institutions.
Some of the main issues were that the majority of the prevailing companies require hefty minimum fees and there’s always a probability of human error, vested interests and therefore the lack of non-biased professional advisors who would put their clients’ interests before their own. He knew that the answer lies in offering efficient, cost-effective and customer-centric services. The real challenge was in overcoming the fear of adjusting how things are done, but Bilal was ready. He decided to make a replacement wealth management platform that mixes brain power and modern technology. A technology that supports innovative algorithms and user-friendly interfaces on a platform that provides clients unfettered, 24/7 access to their investments from the comfort of their homes.
Betterment is a web investment trust based out of New York City, New York, registered with the Securities and Exchange Commission and a member of the Financial Industry regulatory agency (FINRA). It is also known as Betterment.com. Betterment is also a registered investment adviser (RIA) and a broker-dealer.
The company is an automated, goal-based investing service (also referred to as a robo-advisor). Betterment makes its investments using a portfolio of passive index-tracking equity and glued income exchange-traded funds (ETFs) and offers both taxable and tax-advantaged investment accounts, including traditional and Roth individual retirement accounts (IRAs).
As of April 2019, Betterment had $16.4 billion of assets under management.
Wealthfront Inc. is an automated investment service agency located in Palo Alto , California. It was founded by Andy Rachleff and Dan Carroll in 2008. As of January 2019, Wealthfront had more than $11.4 billion of assets under management. Wealthfront is considered a “robo-advisor” investment service.
Founded in 2007, SigFig Financial Management LLC is a wholly-owned subsidiary of Nvest, Inc., providing algorithmic advisory services for new accounts opened at TD Ameritrade Institutional and pre-existing funds held at TD Ameritrade, Charles Schwab, and Fidelity Investments. SigFig is a great tool to manage your long-term portfolio if you’re a current or prospective client of those three brokerages. It is perhaps best thought of as a bolt-on robo-advisor that you simply can access through your broker, in contrast to the stand-alone offerings to individual investors. SigFig also comes equipped with a free portfolio tracker and contracts with other financial institutions. These contracts can be used for co-branding its advisory and management software.
The Charles Schwab Corporation was founded in San Francisco, California. It is a multinational company which provides financial services. Headquartered in the Financial District, San Francisco, Charles Schwab is the 14th largest banking institution in the United States with over US$3.3 trillion in client assets (as of 2019). It is the third largest asset manager within the country, behind BlackRock and Vanguard. The firm is known for its electronic trading platforms, investor education, and discount brokerage services, particularly reduced and free trading commission charges.
Ellevest is a robo-advisor that is specifically meant to fulfill the needs of female investors with the goal of closing gender money gaps. The driving force behind the firm, Sallie Krawcheck, felt that most investing firms design portfolios primarily for men, ignoring the special needs of women.
Ally Invest is part of a diversified financial services company that includes banking, lending, and an options-centric brokerage formerly known as TradeKing. Ally Invest has made large strides towards becoming a better broker for newer investors, but this comes at the detriment to the options-focused customer base it inherited in the TradeKing acquisition. Ally Invest has continued to evolve to serve a larger base of retail investors.
TD Ameritrade is a broker that provides an electronic trading platform which allows for the trade of monetary assets such as common stocks, preferred stocks, futures contracts, exchange-traded funds, options, cryptocurrency, mutual funds, and fixed income investments. TD Ameritrade also provides cash management and margin lending services.
The firm was founded in the town of Omaha, Nebraska. It also has important trading centres at St. Louis, Missouri and Southlake Texas.
On November 25, 2019, it had been announced that Charles Schwab Corporation would acquire TD Ameritrade for $26 billion in an all-stock deal.
SoFi helps people achieve financial independence and fulfil their ambitions. Its products for borrowing, saving, spending, investing, and protecting give its members fast access to tools to invest their money correctly. Getting a membership with SoFi comes with benefits such as career advisors and access to a community of like-minded and ambitious people. Whether they’re looking to shop for a home, economize on student loans, grow in their careers, or invest within the future, the SoFi community will work towards empowering its members to achieve their financial goals and reach financial independence eventually.
Wealthsimple Inc. is a Canada based investment management service which was founded with the main goal of fulfilling millennial investment needs. The firm was founded in September 2014 by Michael Katchen and is located in Toronto. As of August 2019, the firm holds over C$5 billion in assets under management. Power Corporation is the primary owner of Wealthsimple as 83.2% of the investments are made through the holdings in Power Financial, IGM Financial and Portag3.
Merrill Edge Guided Investing fills a spot on the investing continuum between self-directed and completely managed accounts. Customers can also qualify for rewards through their assets held in Merrill Edge Guided Investing accounts. The rewards include free trades and discounts on the management fee.
Merrill says that about three in four of their Guided Investing clients are saving for retirement, therefore the process of defining a goal can include assets held in other financial accounts as well as as an estimate of Social Security income. Guided investing clients can also use the incredible life stage planning tools available on the Merrill Edge website. Portfolios include non-proprietary ETFs selected by the firm’s chief investment officer.
Wells Fargo and Company operates the Intuitive Investor program as a part of Wells Fargo Advisors, the brand name for Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network, registered broker-dealers and non-bank affiliates. Wells Fargo Intuitive Investor provides automated management of professionally curated portfolios that lean heavily on Modern Portfolio Theory (MPT) principles, but you’ll also get to speak with a financial advisor at any time.
Blackrock is the biggest financial management service in the world, with nearly $6 trillion in assets managed. This has led some people to call Blackrock the world’s largest “shadow bank”.
Blackrock’s FutureAdvisor competes with the pre-established robo advisors. Unlike most competitors, FutureAdvisor isn’t a simple rehash of the service and interface of Betterment. The FutureAdvisor app is quite intuitive and all of its portfolios are created while maintaining consistency with the Modern PortfolioTheory. The free services and personalized advice option really pushes FutureAdvisor ahead of the competition.
Launched in December 2017, Morgan Stanley Access Investing mainly serves as a robo-advisor aimed toward younger investors, particularly millennials. Access Investing provides automated investment advice that leans heavily on Modern Portfolio Theory (MPT) principles. Morgan Stanley describes the program as an entry tool, allowing financial advisors to “grow their book of business by making connections with prospects earlier and eventually establishing full service relationships when clients are ready.”
New clients can designate narrow portfolio themes, adding socially conscious or emerging tech exposure that will appeal to many younger investors. Account diversity includes 401(k) rollover, individual taxable, traditional IRA, and Roth IRA account types. There are no joint accounts for spouses or partners, no college savings accounts, and no trust accounts.
Fidelity Go has been built with the young investor in mind and features a very simple interface. The all-digital service allows you to manage one goal and that’s the introductory level for Fidelity’s various managed products. As the product has evolved since its launch in 2016, the main target has been on helping young and emerging investors overcome hesitations around investing. With that in mind, a brand new client can open an account without making a deposit, but you’ll need a minimum of $10 to form any investments. Fidelity dropped the investment minimum from $5,000 in spring 2018 to draw in more investors who are just getting started.
Vanguard is definitely a behemoth within the investment management business. With over $51 billion in assets under management, they revolutionised the investment business by offering low cost index funds that took a passive approach to growing wealth. One of their newest service offerings is the Vanguard Personal Advisor. They do not offer a pure robo advisor service, but provide clients with a hybrid human-robo platform that gives personalised advice to create a portfolio that’s then managed by Vanguard using their technology platform.
Wahed Invest may be a recent entrant into the targeted robo-advisor field, but this unique robo-advisor claims to be the world’s first automated Islamic investment platform governed by Sharia, a religious law that governs not only religious rituals, but day-to-day aspects in Islam. Wahed qualifies as a wealth advisor that is ethically compliant. Islamic scholars scrutinize all the investments made through Wahed. And the platform is meant to appeal to the two billion Muslims across the world.
Tally is easy and simple to use. It was founded by Jason Brown and Jasper Platz in 2015. The service was built from the ground up by a team of experts from the banking, credit, and lending industry. The top reasons for credit card complaints are exorbitant late payment fees, misleading reward programs, billing disputes, account closings, and identity theft. Tally will address all those issues by automatically consolidating all of your card accounts into an easy and straightforward format.
Sarwa is among a new wave of low-cost digital investment platforms for young professionals that gauge an investor’s risk tolerance and assign them a tailored investment portfolio of exchange traded funds (ETFs) while charging lower fees than traditional financial advisors and wealth managers.
Founded in December of 2017 by co-founders Mark Chahwan, Jad Sayegh and Nadine Mezher, Sarwa was one of the first players to enter the UAE market and now has 10,000 registered users, following a monthly growth of over 20 per cent since the firm was launched. It received a full operating licence in November 2018 with the help of the DIFC’s Fintech Hive accelerator programme.
Robo advisors offer incredible financial advice at low costs that meet the needs of many investors (especially ones who don’t have complex portfolios or lack the time to invest the money themselves). With advancements in technology, robo advisors have become extremely popular over the years and they are expected to become even more popular in the future, especially with the tech savvy millennials. In this post, we will take a look at the best robo advisors to choose from.
Here are the best robo advisors available today:
Wealthface was founded in July 2018, with the aim to form the planet of finances accessible to everyone. After working for over a decade within the financial sectors of Dubai and Montreal, Bilal Majbour (founder & CEO) developed a priority about the way the investing was practiced by institutions.
Wealthface Robo Advisor Reveiw
Wealthface robo advisor also comes with no minimum deposit, zero maintenance portfolio, and zero trading fees. The fractional shares solution at Wealthface helps investors purchase high value shares and ETFs at low cost. All Wealthface accounts are regularly re-balanced and optimized for no extra cost. A team of experts is also at the investors service 24/7.
Betterment, an extremely popular online investing company has grown its product suite a lot since its launch in 2008. Betterment launched its cash management suite, Betterment Everyday in 2019. It comes with checking and savings account options.
Betterment comes without any account minimum and a very nominal annual fee of just 0.25%. It’s definitely one of the best robo-advisors out there.
Wealthfront is an automated investment service that competes with Betterment for the top spot in the robo advising market. As of 2018, Wealthfront became the first robo advisor to offer free financial planning that is personalized for its clients.
Wealthfront offers a fairly low account minimum of $500 – though higher than Betterment’s $0 – and an equally low 0.25% annual advisory fee.
SigFig is a robo investing platform that combines money management technology with financial advisors. SigFig’s product features various tiers – perfect for a first-time investor. It’s free portfolio tracker collects customers’ entire investment portfolio in one place and has no minimum investment.
Sigfig Robo Advisor Review
Comparatively, its managed account requires a minimum investment of $2,000 – a large jump from both Betterment and Wealthfront’s requirements – and has a 0.25% annual fee with the first $10,000 managed for free. SigFig also provides the option of tax loss harvesting, portfolio rebalancing and a feature that helps you chat with human advisors.
The robo advisor service of Charles Schwab Corporation, Schwab Intelligent Portfolios is one of the best robo advisors available today and its best feature is its ability to offer customized financial plans for its investors.
Investors are prompted to fill a questionnaire where they establish their own goals and risk tolerance.
With a $5,000 minimum balance, Schwab Intelligent Portfolios has no management or account fees; however, customers pay expense ratios based on investments – which in most cases are still favorable to the fees of other robo advisors.
As the name suggests, Ellevest is a robo advisor which is specifically designed to fulfil the needs of female investors. Ellevest is a robo advising service designed for female investors – but welcomes clients of all gender identities. Having only launched in 2017, Ellevest finds success by looking to close gender money gaps. It uses a proprietary algorithm to calculate financial goal targets to meet gender-specific needs of each client.
Ellevest Robo Advisor Review
Ellevest does not require a minimum balance, and has a competitive 0.25% annual fee for assets under management.
As far as costs go, Ally Invest Managed Portfolios is one of the most economical robo advisors available today. To avail the services Ally Invest Managed Portfolios, investors need a minimum balance of $100. The average portfolio expense ratio is 0.07%. The service has no advisory fees, annual charges, or rebalancing fees but requires investors to hold a minimum of 30% of the portfolio as interest-earning cash.
Ranging from its Web Platform for all investing levels, to its think-or-swim platform for serious traders, TD Ameritrade offers a wide range of options through its robo advisor, making it an attractive option for both investing professionals and novices.
TD Ameritrade has a $0 account minimum, and as of October 2019 it offers free stock, ETF, and per-leg options trading commissions in the U.S. For options trades there is a $0.65 per contract fee.
SoFi gears its services toward younger, fee conscious, clients.
After initially launching in 2011 as a student lending platform, SoFi has expanded well beyond the realm of student loans to personal loans, home loans, and wealth and personal finance management – while still targeting younger investors.
Sofi Robo Advisor Review
Gearing its services toward younger, fee conscious, clients enables SoFi to charge $0 in fees and require an account minimum of $1.
Fidelity offers clients services ranging from financial planning and advice, to strong investing tools. Fidelity is one of the largest financial service providers in the world with over $7.6 trillion in client assets and over 30 million customers. Fidelity’s robo advisor service charges $0 in commission trade and fees, and has a $0 account minimum.
A relatively new player to the robo advising market is Wealthsimple, which first launched in Canada in 2014, followed by the US in 2017.
When it comes to socially responsible investing, Wealthsimple is one of the best robo advisors out there. With the backing of financial experts, it’s loved by millennials.
With an account minimum of $0 and fees of 0.5% for balances up to $99,999, Welathsimple is gaining steam among values-based investors.
There are a bunch of mystery key players that work behind the scenes in the investment world and enhance financial portfolios. These mystery key players are not a group of underground finance wizards, they are in fact, robo advisors. Robo advisors are automated financial management platforms that are supposed to perform the tasks of traditional human financial advisors faster, more efficiently and economically.
Back in time, reviewing a financial situation and building a portfolio based on that was not possible without the help of a real life financial advisor. However, with the help of the advanced software of a robo-advisor, you can have a portfolio that suits your needs. What’s more, the robo advisor will do all the work for you. So you can be busy with your work and indulge in your hobbies while the robo advisor works in the background.
Robo-advisors choose investment opportunities for you based on computer algorithms programmed with your specific financial portfolio preferences, such as risk tolerance and capability, along with your goals and timeline.
Although the concept of allowing a “robot” to manage your finances might sound a little Orwellian, robo advisors can benefit many types of consumers. Robo-advisors can manage basic portfolios at a lot lower costs than human financial advisers — and may even pick up on investment trends faster, thanks to specialized technology that works for you.
Robo Advisor vs Human :Things to Know Before Using One
Who are robo-advisors best for?
Robo advisors work best for the portfolios which are more basic rather than complex. Since they cost much less than traditional financial advisors, they are also extremely helpful if you have budget constraints. However, if your portfolio is made up of many different parts or you have a significantly large investment corpus or you are looking for extremely customized and individualized options, going with a traditional human financial advisor is better suited for you.
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What are the pros and cons of a robo-advisor?
Pros of a robo-advisor:
Many people value the ease of a robo-advisor’s automation when it comes to managing and growing their investments, among other benefits that include:
- Minimal human error. Initially, you might be a little uncomfortable with the idea of letting a “robot” handle all your money. However, since a robo-advisor is a software, it can avoid all types of unintended human errors. It eliminates the possibility of emotional buying and selling which can hamper your long term financial growth.
- Lower fees. A robo advisor costs a lot less than a human financial advisor.
- No awkwardness. If you’ve ever been in the uncomfortable situation of not getting along with your financial adviser, you’ll appreciate this benefit. Turns out, robots don’t get their feelings hurt if they are fired when it’s not a suitable match.
Cons of a robo-advisor?
Because there are two sides to every story, there are also potential drawbacks to consider to using a robo-advisor. For example:
- Automated advisors can’t get to know you. Even the most sophisticated computer algorithm is still an algorithm. It can’t sit down with you, it can’t explain things to you and it certainly can’t listen to your dreams about the future.
- Robo-advisors can’t handle complex portfolios. These advisers aren’t best for overly complicated portfolios. The rule of thumb is that assets of six figures or more need the human touch.
- Questions may cost you. While working with human financial advisors, asking a few extra questions to satisfy your curiosity won’t cost you extra. However, if you have a basic robo-advisor handling your portfolio, you will need to pay extra to converse with a real person.
- You might find it difficult to lose control. Technically, you are always in control of your finances, but you might find it a little bit unsettling to hand over the keys to your wealth to a “robot”. If you want a more hands-on approach, you should consider skipping on the robo advisor.
- You can’t auto manage employer retirement plans. This software can’t do much with retirement plans like 401(k)s, so putting any money in a robo-advisor for a plan like that won’t do you much good.
Who offers lower fees?
The fees for both robo advisors and traditional human financial advisors tend to vary based on the company that you choose. Top-level private advisors, for example, tend to charge a lot more than beginner or standard firm advisors. Some companies charge a fee that reflects a percentage of your assets, while others may impose an annual or initial investment fee.
However, in most cases, robo advisors tend to be significantly more affordable than traditional human financial advisors.
If your goal is to manage a simple and basic financial portfolio, a robo advisor can do that by providing automated management at a much lower fee. Robo advisors are also great at eliminating the chances of human errors which can hamper long term financial gains.
However, if having customized and individualized options is your main goal, you are better off with a traditional human financial advisor. Only another human being can truly get to know you, pay heed to your gut feelings associated with investments and properly understand your island retirement dreams.
A lot of the world’s most popular robo-advisor platforms offer the option to combine human and robo advisors to give customers the best of both worlds. However, when it comes to it, choosing one over another completely depends on your goals, investment corpus and personal preferences.
You can also use this approach towards robo advisors, if you are just starting out with your investments, you can enjoy the economical portfolio management of robo advisors. The low fees will ensure that you get to keep a larger chunk of your profit. You can see this as an opportunity to learn and understand how the investment world works. However, if you are closer to retirement and you have a large sum to invest, you are better off with a traditional human financial advisor.