Answer to “What is the ultimate goal of a Robo Advisor?”

Answer to “What is the ultimate goal of a Robo Advisor?”Someone asked the question: “What is the ultimate goal of a Robo Advisor?”

The ultimate goal of an automated investing service should be what is also the actual expectation of a typical customer.

The ultimate goal of an automated investment management service is to provide the best long-term, risk-optimized returns to the client net-of-fees. This is what a typical client wants — What is the return that I am going to enjoy in the long term for a specific portfolio risk that I am willing to take?

Every thing else, such as an intuitive user interface, great customer support, informative marketing material, sleek mobile app, etc., is secondary.

Our firm QuietGrowth believes that investing in a highly diversified, low-cost portfolio for the long term in most suitable financial instruments, (typically, index or smart-beta funds unless there is a specific case that a particular individual stock is mis-priced over an extended period of time) gives superlative returns, almost always in the top 10% of the risk-optimized portfolio performers in the investing universe. This tenet drives our portfolio construction and this is our main value proposition.

This post was originally published at the QuietGrowth Australia blog at this link.

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