For some time now, robo-advisors have been touted as disruptors to the multi-billion-dollar wealth management industry. These platforms that employ algorithms to manage your money are said to be cheaper, faster, and less prone to mistakes. Taking into consideration your financial goals, risk appetite, and how much you’re investing – they can prescribe an asset allocation that suits your profile.
However, robo-advisors are not without weaknesses – naysayers often criticise these platforms for lacking the human touch that is the bedrock of the wealth management industry. Even then, robo-advisors are forecast to take up about 10% of assets under management (AUM) globally by 2020.
But before you jump on the bandwagon, consider the following pros and cons.