Robo-advisers can save you time and money. Look out for: 1. Its determination of your needs, risk capacity and tolerance. If the questions are superficial or you are unsure of how to answer them, you could be ill-advised. Your asset allocation should be determined by: The risk you must take to earn the return you need to meet your goals; The risk you can afford to take without potentially incurring an unrecoverable loss - your risk capacity; and Your ability to stomach market lows - you risk tolerance. Good robo-advisers look for inconsistencies in your answers and alert human advisers to contact you. They will also ask about your financial wellbeing so that they don't recommend an unsuitable investment. 2. Underlying investments, the investment mix and costs: good robo-advisers choose a suitable investment range, ensure a good mix of assets classes and negotiate the lowest fees for you. Robo-adviser fees are: Bizank: Between 1.14% and 1.71%, including VAT. Some funds also charge pe...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.