Ever since robo-advisors have burst on the investment space, they have completely transformed the way people make their investments. Robo-advisors have emerged as a go-to tool for mass affluent/retail investors who do not have in-depth investment knowledge as well as hold a smaller portfolio with minimal time to manage it.
As per authentic data from PwC, the total assets managed by robo-advisors include approx $300 billion till 2019, and will easily touch the $1 trillion mark by 2020.
In many ways, robo-advisors are threatening the traditional wealth advisory businesses in this modern age as millennial & HNWI investors are looking for more intuitive & personalized investment solutions that offers them full control over their investment portfolio with minimal human intervention. So, let’s get an idea about:
What is a Robo-advisor exactly?
A robo-advisor in its simplest form is an online wealth management service/platform/business that provides automated, algorithm-based investment advice for complete portfolio management with minimal human intervention.
In other words, robo-advisors basically uses computer algorithms to handle the client’s investment portfolio where investors are initially required to fill an online questionnaire.
This helps robo-advisors to get an idea about investor’s risk appetite, time horizon, and investment goals, and drive their investment portfolio, e,g., conservative, risk-taking, etc.
Benefits of Robo-advisors
- Lower asset management fee (up to 0.50%)
- Cost-efficient advisory services
- Highly transparent services
- Investors require minimum financial experience/background
Fintech Businesses & Robo-advisors
Seeing the disruptive capabilities of the robo-advisors, a lot of fintech startups are developing innovative investment solutions that come with AI/robo-advisory support for portfolio management.
DCI is one such unique blockchain project of this year that has created an open, transparent, and regulated investment ecosystem where everyone. Including investors, businesses, and third parties (e.g. accountants, lawyers, AI/robo-advisory service providers, etc.) can find limitless investment opportunities by interacting with each other.
The investors registering on DCI can create a hybrid portfolio of ‘real and digital assets’ with a complete 360-degree view, and further enhanced by advanced technology services like AI/robo-advisory, risk rating, and in conjunction with a human advisor too.
Robo-advisory/AI services in the DCI Ecosystem
DCI will integrate AI/robo-advisory services everywhere in the Ecosystem, which will assist investors at every step, right from the start of portfolio creation, optimization, to rebalancing it.
The investors registering on DCI will have the option to choose and add/activate the preferred robo-advisory service to their investment portfolio for getting smart investment advice, market insights, portfolio rebalancing tips and much more instantly.
DCI, right now, is in the product development stage, and looking to partner with a list of third-party software vendors/service providers who can offer AI/robo-advisory services to DCI clients within the Ecosystem itself.
No additional fees will be charged from third-party AI/robo-advisory firms for registering/partnering with DCI.
Apart from personalized wealth management advice, the robo-advisory functionality integrated into DCI ecosystem will also assist investors in:
- Portfolio creation, optimization, and rebalancing
- Strategic Asset Allocation
- Getting market insights
- Stock picking (AI)
- ETF building
- and much more.
We are also well aware of the fact that large institutional investors have complex investment requirements; hence, the risk profiling and asset allocation done by a robo-advisor might not suit them. Robo-advisors also does not offer them a full range of investment options that they can consider.
DCI understands this very well and allows its clients/investors to have access to “RFA-Registered Financial Advisors” in the Ecosystem to support the Robo-Advisor so that they are better protected on the behavior of their portfolio.
RFA will be an independent advisor operating in the DCI Ecosystem who will provide his/her service directly to the DCI clients.
The investors will have the option of choosing among the multiple RFAs depending upon their past work, experience, rating, service charge, etc.
To unlock more secrets about DCI, please visit the DCI Ecosystem and register on the website: