How the portfolio personalization on the Roobee platform is performed?
We have previously stated that on the Roobee platform it will be possible to build an investment portfolio for different needs with the help of an automatic assistant.
For example, the user has a goal — to save money for the education of their children or a new car, house, etc.
For this purpose, the Roobee platform will offer to the user an investment portfolio, which will help to achieve the set goals with maximum efficiency.
This method is called robo-advising 🤖. Today we will tell you what it is and how the portfolio personalization on the Roobee platform is performed.
➖ What is robo-advising?
In simple words — robo-advisor is a robot-assistant, that builds an investment portfolio consisting of recommended assets, based on the user’s preferences and purpose. Further on it helps to manage this portfolio and achieve the established goals.
➖ How does it work?
The process of robo-advisor operation cannot be described in two words. But we will try to clarify and explain its working principle 🙌
Let’s have a look at the example of a user who wants to build a portfolio with the help of an automatic helper on the Roobee platform 👤
This user has a goal to save $5,000 over 6 months for a car. And he selects RoobeeFin mode.
Next, the robot offers to answer a few questions to determine the risk profile of the user and offer the best option.
For instance, the user needs to specify:
— Investment goal;
— Investment experience;
— Income and risk levels;
— etc.
After receiving all the answers 👆, the robo-advisor commences its work — it carefully inspects the companies, investigates the forecasts of the world’s leading companies, growth potentials, then calculates all this, diversifies, considers the industry risks, and finally generates a portfolio that consists of investment assets with different growth potential.
Then the user, on the basis of the received information, makes a decision — whether to invest in the proposed portfolio or not.
However, this is only the first part of the robot’s performance. Further it still has to be automatically engaged in personal finance and investment portfolio management, and also its rebalancing. We will cover this in the following publications. Dont miss it.
