What Are The Advantages of Using A Robo-Advisory App?

Robo-advisory apps are automatic investment apps, that use an algorithm and investment managers. Some apps are completely automated and others may have human assistance. They also provide customer service on these apps. 

Robo-advisory apps are a modern way for people to invest their money. That requires less research than what an investor would have. Investing is something that takes a lot of time but with a robo-advisory app, it helps reduce your research time. Let's take a look at the advantages of a robo-advisory app. 

Lower Fees Compared To Financial Advisors

If people wanted to manage their finances and invest money, they would have to speak with a financial advisor. However, when using a robo-advisory app, you don’t need to pay extortionate fees. 

They Use The Best Investment Methods 

Another advantage to using these apps is that they use the best investment strategies. That means there is very little chance of human error. The algorithm on these apps ensures that very little is at risk but can return the most amount of money possible. Some robo-advisory apps will also use portfolio research which has been applied to modern theories to drive a higher return. 

Creating An Account Is Simple

Another positive with robo-advisory apps is that they are easy to open an account with. With robo-advisory being able to invest your money, a financial advisor could focus on the rest of your money elsewhere. It could be money for a mortgage or dealing with your taxes. However, robo-advisory apps can also do this for you. 

Many young investors have started using these robo-advisory apps because they don’t have the money to pay for a financial advisor. it is because lower fees are provided and they are simple to use. 

They Can Also Have Lower Account Minimums

Many people don’t invest in the stock market because they think they require a large amount of money to invest. However, that is not the case with a robo-advisory app. Minimum fees are required meaning you can invest with as little as you want. Plum is one common robo-advisory app which is used in the UK and you can begin investing with as little as £1. For those who don’t have a lot of money to invest, using these apps opens the door for many more investors. 

Final Opinions

Investing is now becoming more common among the younger generation and it is a good thing. People are noticing that putting money into a savings account isn’t the best method for house deposits and putting money into a retirement fund. 

Although robo-advisory apps help people invest their money, not all apps help with managing finances. This is why many people will use this debt payoff planner to help pay the finances which they owe. Some people will also use Google Sheets or Microsoft Excel to help manage their expenses each month. Nevertheless, there are some robo-advisory apps which also help with managing expenses. All you need to do is connect your app to your bank account and it will work out which are your constant bills as well as how much you earn each month.