How ‘robo-investing’ is managing money for the masses ► ©[bbc.com]
“Robo-investing” – using computer algorithms rather than humans to manage your investments – is a white-hot sector attracting lots of start-up cash.
There are now several companies here in the US promising that their algorithms can get more bang for your investment buck at a fraction of the price charged by traditional investment managers.
Managing your portfolio, diversifying your investments and handling your tax liabilities can all be done automatically 24/7.
And machines aren’t swayed by fear and greed, the primary emotions that often drive very poor investment decisions. They can crunch terabytes of data and take a global, long-term view, spreading your investments across geographies and asset classes, from bonds to equities, index funds to property.