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The Q.ai Team

How Q.ai Is Different from Traditional Robo-Investing

Money management is like laundry—you really should do it yourself, and you totally can do it, but it’s just easier to have someone else do it for you. After all, there aren’t enough hours in the day to bother tracking your portfolio performance or ransacking the hungry dryer for that matching sock. But isn’t it about time you really “adulted” for yourself—and invested the money spent on a financial advisor to your own investment portfolio?

Besides, gone are the days when you were relegated to hiring a financial advisor to handle your investments. You can still get the money-management support you need while keeping control of your own financial future.

Today, you’re spoiled for choice of financial apps that crunch the numbers for you, so you can start saving and growing your money from your fingertips. And most of ’em make structuring and maintaining a portfolio as easy as ordering takeout from the comfortable confines of your living room.

Robo-investing is the modern way to invest—without the stuffy, business-suit clad financial advisors who charge exorbitant management fees. If there’s one thing that’s for certain: They’re not your parents’ portfolio managers.

But what exactly are robo-advisors, and how specifically are they revolutionizing personal finance and portfolio management? More importantly, how is Q.ai even better than your average robo-advisor?

Let’s unpack it all.

What is a robo-advisor?

Robo-advisors are platforms that allow you to invest. They offer people access to investing knowledge and money-management tools at a fraction of the price that traditional human advisors cost. Therefore, they empower you to save money (the less fees, the more you save),  your returns compound over time and you grow your wealth to ultimately achieve financial freedom, whatever that looks like for you. 

Using a robo-advisor is ideal for investors of any level who want to “set it and forget it.” In fact, investing through a robo-advisor is a good idea for a few reasons:

  • Robo-advisors offer you 24/7 access to money-management, unlike traditional financial advisors who tend to keep specific business hours and may require appointments
  • To access your investments with a robo-advisor, all you need is an internet connection
  • Robo-advisors often also offer a host of other services, beyond money management. These may include investing resources, tips and access to human advice upon request.

While there are plenty of advantages to investing with a robo-advisor, there are also several noteworthy pitfalls.

Here are just a few of them:

  • Robo-advisors generally charge you a percentage of your assets under management. The industry standard is about 0.25 percent each year. However, this number can range higher for some robo-advisors.
  • Robo-advisors may charge a whole host of other hidden fees, including transfer fees and trade fees
  • Not all robo-advisors offer you access to human help if you need it
  • Few robo-advisors offer exhaustive services like investing resources
  • Some robo-advisors can be complicated to use, leaving you to stock pick on your own—rather than deploying smart strategies to invest your money

That’s why it’s important to do your research when hunting for robo-advisors. 

Q.ai is so much more than a basic robo-advisor

Traditional robo-advisors will point you towards one of three paths: conservative, moderate and aggressive investment profiles. Depending on which path you pursue, your portfolio will include basic assets—stocks, etfs, bonds, etc.—that match that level of risk. 

While practical, it’s important to note that, aside from these three risk profiles, the assets that make up the portfolio don’t vary from person to person. That means if you classified yourself as a moderate investor, you could have an identical investment portfolio as thousands of other moderate investors who park their money in that same robo. 

A traditional robo doesn’t effectively take into account individual circumstances, or interests such as wanting to invest in cryptocurrencies or tech companies. It’s truly the definition of vanilla.

Q.ai is powering a personal wealth movement by creating an investment experience that is not only easy to set up and manage, but also gives you total flexibility in the types of stocks and ETFs that make up your portfolio. We pull this off by leveraging advanced artificial intelligence and big data to deliver portfolio management and hedge fund strategies to all levels of investors.

AI-powered strategies that actively seek returns and work to minimize risk

Our smart investment strategies, which we call Investment Kits, are tailored to a variety of risk levels and investment themes. And each Kit automatically adapts to changes in the market to try to keep your total account value in the green. 

For users, it’s simple. We have four types of Kits: Foundation, Limited Edition, Specialty, and Community. All of our Kits started as an idea from our investment team, which is a combination of experienced quant engineers and Wall Street investors. They work with our chief investments officer to determine how to structure the Kit and which type of assets it will include. 

After it’s packaged together, our AI takes over to determine which specific assets will be allocated in the Investment Kit each week, and adjust its holdings by buying and selling assets on your behalf. While our investment team creates Kits, it is our AI that is trained to manage each Kit based on a unique set of factors and rules.

But our AI doesn’t stop there. Q.ai also uses AI to manage risk between Kits. So, if you’re invested in more than one Kit (ideal for diversification), our AI takes the wheel to balance out your entire portfolio.

Portfolio Protection that potentially protects your gains from expected risks

And, if you’re invested in a Foundation Kit, you have the option to activate Portfolio Protection, a feature which uses predictive AI to adjust the allocation of investments in a Kit to forecasted risks. Basically, it looks at factors like market risk, interest rate risk, oil price risk and volatility risk, and then hedges your investments to offset the potentially negative impacts of those factors.

In other words: Q.ai’s combination of highly sophisticated algorithms and our investment team’s quantitative analysis provides peace of mind without sacrificing control over your money. It’s not just a robo-advisor. It’s your very own pocket-sized hedge fund.

Disclosures
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.

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