This is a common question asked by many young people who have just started their journey to save for their future. If you have this question, then I am glad that you intend to invest for the long term. I am also glad that you are open to seeking the help of an expert to help you make your investments.
However, if you are considering to take the help of a high-quality financial adviser providing you the service face-to-face, then, unfortunately, the amount of investible assets that you have is not sufficient.
Someone asked the question: “Do any robo-advisors focus on downside risk?”. Below is my answer to that person —
Factoring-in the downside risk is an essential part of portfolio construction and investment management, and I am sure that credible robo-advisors deal with this.
As a client, if you are worried about the downside risk of your portfolio, then may be that portfolio is too risky for you. May be, your risk tolerance level is much lower, and you would need to opt for a less risky portfolio.
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?
Someone asked the question: “Why do investments grow over time?”
It is a powerful question (if the question is being asked with a philosophical bent of mind) !!
In my opinion, investments, at an overall level, grow over time, due to increase in the productivity of mankind.
The growth of civilizations, advancements in technologies, improvements in our ways of living, improvements in the quality of our lives, are mostly due to the intelligence and enterprise of mankind. This has resulted in a progressive increase in our productivity over millennia.