Investment planning depends upon a lot of factors such as risk appetite, goals, diversification of portfolio, etc. With so many things to keep in mind, people often tend to postpone their investments. The role of experts and advisors becomes really important to help people navigate through the challenges faced during investment planning. Nowadays with modernised technology, artificial intelligence- ‘robo-advisory’ has taken upon the role of a financial advisor to spearhead financial inclusion.
Robo-advisory can solve the investment-related concerns of an individual. The computer prepares the profile of the investor. Based on the age, salary, investment horizon, and goal, a personalised plan is prepared and given to the investor. Many fintech companies have ventured into this field and are now providing robo-advisory through their app and website.
Gaurav Rastogi, founder, and CEO of Kuvera talks about robo-advisory and its pros and cons
The investor has to feed all the financial information into the system. The investor does not have to meet or talk to anyone. Based on all the data, investors are given an investment plan. Plans are customised according to the goal and age of each person. Investing in mutual funds or stocks can be done with the help of robo-advisory. Robo-advisory also helps in bringing discipline in investing. Re-balancing is also advised according to the circumstances in the investment.
Rastogi also said, that as there is no human intervention, a person need not worry that someone will sell the wrong product for personal gain.
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