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DavidSvinson
Topic Author
Posts: 1
Joined: May 28th, 2018, 9:08 am

Automated investment advice (robo-advisors)

May 28th, 2018, 9:22 am

What is your opinion about robo-advisors? Is it a reliable way to invest your money? What are the advantages and disadvantages? Please let me know your opinion. 

I'm conducting an academic research about automated investment advice provided by robo-advisors. If you are also interested in this topic and would like to contribute further, it would be great if you could take the time to fill out my survey (anonymously), I promise it will take no more than 10 minutes. Please follow the link bellow. 
https://uvacommscience.eu.qualtrics.com ... 8f3lXcjzrn
 
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ppauper
Posts: 11729
Joined: November 15th, 2001, 1:29 pm

Re: Automated investment advice (robo-advisors)

May 28th, 2018, 4:10 pm

I have a comment on the questionnaire.
At the outset, you say "Your initial intention is to invest 10.000 € for five years and you would be willing to lose no more than 10% of your initial investment annually"
The portfolio you suggest gives a forecast performance in 5 years, saying there is a 90% chance will be between 9k and 18k.
You don't seem to have addressed the constraint, therefore the portfolio is unsuitable
 
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Cuchulainn
Posts: 20254
Joined: July 16th, 2004, 7:38 am
Location: 20, 000

Re: Automated investment advice (robo-advisors)

May 29th, 2018, 11:29 am

 I don't understand. You invest 10K and be prepared to lose 10% each year for 5 years. That's 5K after 5 years.

Of course, there are no fees!

What's the catch?
 
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ppauper
Posts: 11729
Joined: November 15th, 2001, 1:29 pm

Re: Automated investment advice (robo-advisors)

May 29th, 2018, 11:48 am

you are told there's a 90% chance it will be between 9k and 18k.
You need there to be a 0% chance it will be less than 5k.
 
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ISayMoo
Posts: 2332
Joined: September 30th, 2015, 8:30 pm

Re: Automated investment advice (robo-advisors)

September 15th, 2018, 2:34 pm

They say that the client doesn't want to lose more than X. They don't say that they guarantee that. The British phrase is "we aim to deliver your package within 1 next business day".