How is the performance of automated investing by Robo-Advisors? Simple knowledge about Robo-Advisors that beginners want to know
Do you know investment through robo-advisors?
It is something that automatically manages your assets and is often explained as investment suitable for beginners.
This article will look at the advantages and disadvantages of robo-advisor investments.
【Details of performance here】
Evaluation and track record of FOLIO ROBO PRO (Robo Pro)! What’s the difference from WealthNavi?
A key advantage of robo-advisors is the ability to operate automatically.
This is the biggest benefit, and basically you can just leave the invested money as is.
Because it automatically invests based on algorithms, you don’t need to do anything in particular.
You just need to keep funding it steadily.
You might feel uneasy if you don’t do anything yourself, but as you can see from the performance, the results are good.
In my case, I kept the robo-advisor investments small and also engaged in more active trading, so the investment amount is modest, but the returns are quite good.
Of course, depending on stock market conditions there may be years with negative returns, but the goal is long-term positive performance (a 10-year investment horizon).
On the other hand, are there any drawbacks to robo-advisors? Yes, there are.
Slightly higher fees.
Robo-advisor fees are generally around 1%, but if you set up your own index fund installments, it can be below 1%.
- Robo-advisor: slightly higher fees, but supports automatic management
- Individual installment investing: fees are cheaper, but you need to set it up yourself
It's not possible to say which is better in all cases, but I initially chose a service that could manage automatically.
There were breakages in fees, but it sparked my investment journey, and eventually I was able to set things up manually.
Having invested since I was poor, the most important thing I feel is to become accustomed to investing.
There are fees and other difficult issues, butbecause I had positive experiences with robo-advisors, I continue investing today.
Robo-advisors help change the perception that investing is difficult.For those who are interested in investing but feel that setting things up yourself would be difficult, using a robo-advisor is a good option.
Conversely, if you want to study on your own and reduce fees, start with an investor other than robo-advisors.
Decide whether to prioritize fees or effort, and choose how to start!
【Details of performance here】
Evaluation and track record of FOLIO ROBO PRO (Robo Pro)! What’s the difference from WealthNavi?
