(Learn bonds) - With assets under management of more than $980 billion, Robo Advisors protect investor’s returns during panic situations and higher market uncertainties.
Beginners and even advanced investors fear when markets decline; this situation forces them to sell their assets at discount – this situation is known as panic selling.
Along with lower fee and several other benefits, Robo advisors instantly respond to market uncertainty. The computerized advisors use its algorithms and investors risk tolerance potential to make changes in the asset portfolio.
These Robo-advisors oversee investor’s portfolio according to risk tolerance levels.
Typically, when you register with robo’s, they will ask you to fill a form composed of several questions – which will help robo advisors to create an asset portfolio or to make changes during bullish and bearish trends. However, if you’re still not satisfied with the asset allocation, the majority of platforms let to reach human advisor and permit you to adjust portfolio.
Below are the two best robo advisors that have significant experience and recognition in the computerized form of investing:
With the low annual fee of 0.25% and 0.40% for premium accounts, Betterment is one of the pioneers in this industry. The online financial advisor focuses on ETF-based portfolios combined with tax-efficient strategies.
It has more than $15 billion of assets under management.
They also help in creating the best retirement portfolio for investors who are seeking better than average returns with low risk. The broker claims to offer 1.6% higher returns than the market average on retirement portfolios.
Personal Capital creates automated asset portfolio and it open and close trades when given markets conditions exist that investor has described in investment preference form. It has $9 billion of assets under management. The platform offers several other benefits to investors such as tax harvesting, portfolio rebalancing and access to a human advisor.