An automated investing service (or Robo advisor) is an alternative to traditional financial advisory services. These services use software to invest and manage a globally diversified portfolio accounts automatically.
With these services, you will be asked series of financial risk-assessment questions to to build a portfolio that meets your risk tolerance and saving goals. Based upon your risk tolerance, computer software algorithm takes care of your portfolio management and allocation (choosing the funds, re-balancing and dividend reinvestment) automatically.
Main goal of these service is to reduce the investment fee compared to a human financial adviser.
Here is the list of online financial advisers.
- Betterment – www.betterment.com
- Wealthfront – www.wealthfront.com
- FutureAdvisor – www.futureadvisor.com
- Personal Capital – www.personalcapital.com
- SigFig – www.sigfig.com
- JemStep – www.jemstep.com
- MarketRiders – www.marketriders.com
Compare the differences and it’s investment strategy before choosing a robo adviser for your investment needs.