Disruption of Robo Advisory
3 Things a Robo Advisor Does With Your Money
A deep dive into how it handles your cash
The Rise of The Robots
According to Kiplinger, Robo-adviser firms have seen 3 times the digit growth from 2012 to 2019 and Cerulli associated reported robo investment has $60 billion in assets and could quickly amass up to 385 billion in the next 5 years. This is truly outstanding.
During the 2008 financial crisis, investors were burnt by considerable losses in the stock market, pushing them to put their wealth into passive investment vehicles that generate returns with the least amount of work. The popularity of passively managed funds soared with the bull run in 2009, as cost-conscious investors sought cheaper fees and rode the growth of benchmark indices.
It was during this bull run that Jon Stein launched Betterment, the world’s first robo-advisory platform, in the US in 2010
Robo Advisor is essentially a digital service that uses highly specialized software to do the job of wealth managers or investment advisors. Those are the people who decide what type of investments you should be making and then tinker with those investments…
