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Robo Advisors Guide: Automated Investing for Everyone
Automated Management• 8 min read
Automated wealth managers or Robo Advisors have democratized high-quality investing, allowing anyone to access low-cost balanced portfolios previously reserved for high-net-worth individuals.
1. What Exactly Does a Robo Advisor Do For You?
After you complete a suitability questionnaire, the automated platform takes care of all the technical heavy lifting for you so you don't have to worry about a thing:
- Buy assets proportionally whenever you make monthly deposits.
- Automated rebalancing: Sells assets that have grown too much to buy those that have dropped, maintaining your target risk profile.
- Internal and efficient dividend reinvestment.
- Automatic tax optimization of your portfolios.
SafeInvest Professional Tip
A Robo Advisor is the best medicine against analysis paralysis. If you do not want to spend time analyzing fund ISINs or manually executing rebalances, it is the perfect choice.