The Rise of Robo-Advisors is Changing the Way People Invest

The term “robo-advisors” refers to digital investment advisory services that provide customised investment advice or portfolios using algorithms and other software tools. A key advantage of robo-advisors is that customers receive independent investment advice and more choices at a fraction of the cost of traditional financial advisors. Fees are usually less than one percent, compared to the 2% to 3% that traditional advisors in Asia often charge. Along with giving customers high-quality advice round the clock and at low cost, robo-advisors can reduce the behavioural biases of traditional portfolio managers and provide customised investment tools.

Robo-advisory platforms are gradually gaining steam in Asia-Pacific, and might prove a disruptive force to the asset management industry in the region in the years to come.  Assets under management (AUM) managed by robo-advisors is expected to grow rapidly over the next half-decade, driven by consumers who are becoming more comfortable with robo-advisors and the higher quality of their services they are providing. In the United States alone, AUM managed by digital advice platforms will reach $2.2 trillion by 2020.

irobo pic 1                                                           Source: KPMG Report

iRoboInvest, a Hong Kong-based robo-advisory platform, is set to step their foot into the scene in Q4 of 2017. iRoboInvest is a goal-based Robo-Advisor that aims at hyper-connected Asian millennials. The easy-to-use platform enables clients to reach their financial goals. Their investments go to broad-based ETFs and the average portfolio fully replicates the global economy. The platform, expected to launch in beta in early November, will focus on allowing the average individual to build wealth starting with no minimum investment amount. Be the first one to try!

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