Why Robo Advisory?

You may say it a pre-programmed personal financial advice as well? A robo advisor is an automated service that gives you advice on managing investments & even helps you in buying some financial products. With robo advisory, a very little human intervention is needed from registration to execution. Most of the robo advisors claim to use Machine Learning and Artificial Intelligence, the fact is that they are using rule based logic condition.

Though all robo advisory platforms give various choices for fast, clear & scientific investment advice, there is a difference in the final recommendation. However the basic premise remains the same. For e.g. for your long-term goals of more than 5 years, it works best to allocate to equity & into fixed income investments for short term needs.

Prior to the initiation of robo advisory platforms, investors were too lucky to receive professionally managed assistance of investments for less than 1.0% of AUM (Assets under management). The robo advisory firms have changed that paradigm.

It is a boon for investors with a very small net worth to get professional robo advisory management service. 0 minimum balance technology enhanced robo advisors. Personal Capital is totally free for those people who are interested in access to portfolio monitoring with the higher balance tiers reserved for exposure to a dedicated financial advise

As each & every investor knows that taxes can have a major impact on investment rate of return. This is specifically true for capital gains & specially of near term capital gains as they are taxed at regular income tax rates. Since they are fully automated, robo advisors are constructed in a way that they minimize capital gains taxation.

It is just a question of time before even a very well allocated portfolio gets out of balance sometimes. The changes in asset categories either higher or lower distort the allocation. For this reason, portfolio needs to be rebalanced. At minimum, it needs to be done at least once a year. But more frequently is even better. As markets may shift by double-digit % in a matter of weeks.


  • – 24/7 Accessibility- the Robo financial advisors can be helpful for any investor, no matter the amount of wealth. And being online has the greatest advantage of 24/7 accessibility.
  • – Low Costs- without any human interaction, the fees are drastically reduced & the robo advisors are much cheaper than the traditional advisors.
  • – Transparency- Robo investment advisors are transparent upon fees, trades & portfolios, etc.
  • – Efficiency- every change in the portfolio can be instructed efficiently & effectively
  • – User Experience – easy & intuitive features allows a comfortable user experience
  • – Targeting to Small Investors- there are some Robo Advisers who are are targeting small investors that are used to digital & are the potential wealthy clients of the future


All the companies operating in this space have easy & interactive platforms that catalogue not only the personal details in terms of profile, goals, income, aspirations etc. But also effectively maintains all the information related to each & every financial transaction already executed. At the time of opening an account, the full fledge risk profiling is done through a series of questions, which includes listing one’s assets, liabilities and investments.


RoboAdviso is an Online Portfolio Management application which provides recommendation based on algorithm to investors. The products recommended are of low cost and it is free from any human intervention. The Financial plans are generated dynamically by the algorithm.

RoboAdvisors tries to understands what are the requirements of the clients by asking few questions and they are as follows.

  • – Age
  • – Amount of Investment
  • – Time Horizon of the investment
  • – Risk Profile of the investors
 Once these Data’s are provided by investors, then Robo-Advisor dynamically creates Financial Plan based on the data provided by investors.

The Financial plan shows how much should be allocated to which asset class and among that asset class what should be allocation to various schemes. It also shows how has the fund has performed in the past and what are the future expectations from it.

RoboAdvisor creates financial plans or Portfolio’s based on asset allocation only. These asset allocations are designed by Industry experts who have won many accolades under their belts.

The asset allocation are designed by in such a way that it suits the risk profile, time horizon and age of the investors. Whenever roboadvisor feels that the investors can take higher risk then it gives it’s suggestion.

The basic idea of RoboAdvisor is that it will recommend low cost and simple products. Mutual funds are the best low cost products in the industry. Expensive products never gives higher returns as most of the gains are eaten up by the product manufacturers & advisors. In case of Mutual funds if you invest in Mutual funds then you are taking less risk and you will ultimately end up making higher returns.

Debt Funds solves two purpose in portfolio.

Firstly, It helps in Building a corpus which can be used to shift to volatile asset class when there is a sharp fall in the market. Secondly, It provides some stability in the portfolio by bringing down the volatility.

SIP is systematic investment plan which helps you to invest a fixed amount regularly in a mutual funds scheme every months.

Benefits of SIP

  • – Disciplined approach to investments. It helps you mandatorily save every month.
  • – No need to time the market
  • – SIPs help in achieving rupee cost averaging
  • – SIP investment helps in getting the benefit of compounding and help in creating a big corpus over a longer period.

You do not trust a person when you meet him first time for management of your hard earned wealth . It’s only after subsequent meetings which helps you build trust and then this trust continues for life long. We are not saying that you should Trust RoboAdvisor. But you should give it a try so that you can look at the benefit of it. In mean time we can share with you Some of our credentials which would help build trust.

Past performance is derived by calculating using the historical Portfolio NAV.

Yes, Every account will have an individual relationship manager.