RoboInvestors have become popular with access to increased raw computing power to harness large data sets coupled with intelligent algorithms and Artificial Intelligence.
They are revolutionising the industry and the investment process by offering easy-access to the mass market. What sets apart one RoboInvestor platform from another? Are they all alike? We cover the 3 major areas to consider when leveraging a RoboInvestor for your investment platform approach.
Author : Richard Goh, CFO Smarts
Active vs Passive approach
A passive investing approach typically targets low-fee funds and heavily utilises algorithms that invest on your behalf without human intervention. The active approach is to utilise the knowledge and experience of financial planners who understand the volatility of the market based on economy and market conditions that’s playing out in real time. The active approach also can provide specific tailored strategies and appetite for individual needs. There isn’t a right or wrong approach and both have a role to play a part by leveraging diversification and needs of the individual.
Level of Customisation
The level of customization plays an important factor. Investment managers that utilise the platforms bring their vast experience and the level of flexibility is what can provide a huge advantage in modelling and training for pattern recognition. These are the levers that can provide the predictions to complement and provide a competitive advantage to other platforms. Examples would be the flexibility to tune the traded volume of a stock, the 5-day moving average of the price, and even setting up proprietary market sentiment indicators.
Behind the tools and machine
There is a leap of faith to be taken when leaving decisions to programming codes that make up the illusion of Artificial Intelligence for a financial outcome. Having the transparency, visibility, thought processes and algorithms used can provide insights and the confidence to leverage the customisation concepts mentioned earlier. At the end of the day, a platform is still a tool and having a great tool without the knowledge to leverage how to isn’t going to provide the best outcome. Having expert advisory with the developers or creators on how to leverage the logic built, features and function in is an added advantage to accelerate the learning curve and exploit the platform further.
How we can help
At Smart Solutions, we take all of the above into consideration when providing our offer and services. Our platform leverages an active approach to achieve the best results and provide tailored customisation for individual investors. We leverage advisory services to fine tune and tweak needs to your own approach towards individual needs. Don’t take our word for it and see it for yourselves. We assure you that you won’t be disappointed with the 30 minutes that you spend with us and learning about our RoboInvestor platform. Give us a call or reach out to me at richard@smarts.sg and it would be my pleasure to host you.