Disruption of AI in Wealth Management:
Robo-advisory has greatly changed the framework and method of research in traditional wealth management services by using customized algorithms to analyze investment data and create customized investment portfolios for individuals. This technology-based approach offers a more affordable and efficient alternative to traditional wealth management services, making it more accessible to a wider range of investors.
Robo-advisory is a revolutionary technology that has revolutionized the way wealth management services are delivered. It uses algorithms and artificial intelligence to provide automated financial advice, portfolio management and other asset allocation strategies tailored to individual investor needs.
Benefits of AI penetration:
Robo-advisory, in contrast to traditional Wealth Managers, produces quality advice at lower fees and minimum investment requirements, making it a more accessible option for investors.
It also offers greater transparency and control, as investors can monitor their portfolios in real-time, providing them with a more comprehensive understanding of how their money is being managed. The raised transparency provided by the algorithms helps to build trust in the robo-advisory model, which is critical for successful long-term investments.
AI penetration in Portfolio Management:
Robo-advisory can offer personalized investment advice, leveraging algorithms to tailor investment portfolios to individual investors’ needs, considering their risk tolerance, financial situation and investment goals. This customized approach optimizes the investment strategy and enhances the investment experience for investors.
Additionally, robo-advisory platforms provide automated portfolio management services, which are efficient and reduce the risk of human error. These platforms automatically monitor and rebalance the investment portfolio to ensure it remains aligned with the investor’s goals and risk tolerance, providing a hassle-free and cost-effective investment solution.
Finally, robo-advisory solutions also allow clients greater control over their finances since they can customize certain parameters according to their preferences & requirements like setting up periodic deposits/withdrawals & rebalance accounts regularly based on changing personal circumstances. Plus, its low-cost nature means anyone regardless of income level can now afford to invest money wisely instead of relying solely upon luck or intuition when comes to decision-making!
Credits:
Jothy Sudharsana Guptha
Financial Planning Team
