Automated investing uses computer algorithms to tailor investment advice to specific individuals. Typically used by robo-advisors, it’s best suited for investors who prefer taking a hands-off approach to their investments.
Automated investing uses digital software and complex computer algorithms to generate tailored financial advice for investors. Many automated investing platforms offer rock-bottom fees, online support, and features like tax loss harvesting and automatic rebalancing.
Automated investing makes it easier for beginners to get their foot in the door – without the expense and hassle of a traditional financial advisor.
Most automated platforms begin with a short survey to assess a client’s age, goals, income, and risk tolerance. Some tailor their portfolios to a client’s investing preferences, such as by offering thematic investments or bond-heavy portfolios.
Then, the algorithm builds a portfolio from a preset mix of securities that meets your needs. Typically, this includes a mix of stock- and bond-based ETFs, or exchange-traded funds, for automatic diversification.
Automated investing services also remove some of the traditional barriers to entry for new or less-wealthy investors. For instance, many reduce or eliminate the costly trading commissions and investment fees. And most let you invest a lower amount upfront (typically $1 to $100) compared to the thousands often required by human advisors.
But one of the biggest benefits of automated investing is in its bones—or rather, its algorithms.
More and more, automated investing platforms rely on machine learning and artificial intelligence to match investors to investments. Because these algorithms not only take in and use data, but learn as they go, they continue to improve as more users adopt their services.
Automated investing is just one more way that the internet continues to disrupt the financial sector. Thanks to its lower costs, increased access, and ease of use, novice and experienced investors alike can participate in the stock market and grow their wealth in well-diversified portfolios.
If you’re ready to experience the benefits of automatic investing for yourself, Q.ai’s very own AI-powered investment app is one of the best.
Our machine learning algorithms use factor modeling to navigate the market for you, building one-of-a-kind Investment Kits that help you capitalize on current market trends. And with perks like a low initial investment, automatic diversification, and Portfolio Protection, you can rest assured that we’re working to help build your wealth—not pocket it ourselves.
Q.ai is the trade name of Quantalytics Holdings, LLC. Q.ai, LLC is a wholly-owned subsidiary of Quantalytics Holdings, LLC ("Quantalytics"). Quantalytics offers automated financial advice tools through Quantalytics Investment Advisors, LLC ("QAI"), an SEC-registered investment advisor. QIA’s investment advisory services are ONLY available only to residents of the United States. Disclosures concerning QIA’s investment advisory services are available on its Form ADV filed with the SEC. The content in this newsletter is for informational purposes only and does not constitute a comprehensive description of Q.ai's investment advisory services.