What is robo advice
Robo advice are financial advice given to clients online with minimal human intervention. Clients are provided with the optimum investment portfolio generated using their answers to a series of questions posted to them by the robo advice software.
How robo advice is generated
Clients of robo advisors are required to answer a series of questions online, such as their income, expenses, assets and liabilities, investment goals and risk profile. The robo advisor software will then allocate, manage and come up with the optimum investment plan based on the answers that the client has provided. The client has the responsibility to update their information with the robo advice software when their circumstances change over time to ensure that the advice still fits the need of the client.
Fees required to obtain robo advice
Obtaining robo advice generally requires a lower fee than traditional financial advice as minimum human labor is required. Clients might be charged a subscription fee for ongoing service, such as regular newsletter or updates on their investment plans.
An example of a robo adviser is Six Park. For more information on Six Park, please see here.
For more information on what an SMSF can invest in, please see the page here.