Robo-advisor vs Human Advisor - Which is better?
23 Mar 2017
Nutan Gupta
Robo-advisory as an investment method has gained momentum
in the last couple of years. While a lot of people these days are preferring robo-advisors
for financial advice, many are still comfortable with the traditional method for seeking
investment advice.
Here are the major differences between a robo-advisor and
human advisor:
Characteristics |
Robo-advisor |
Human Advisor |
Financial
Advice |
Fully
automated based on the answers you provide to their questionnaire |
Personal
advice which can be customised as per an individual’s situation |
Communication |
Human
contact is limited to skype and email |
An
individual is able to seek advice personally - face-to-face or on the telephone |
Services
|
Investment
services only |
Can
seek advice related to investment planning, insurance etc |
Asset
Management |
Provides
only passive management services |
Provides
both active and passive management |
Cost
|
Provides
low-cost advisory services |
As
human advisor provides personalised services, the cost is high |
Technology
|
Uses
advanced technology |
Technology
is not very advanced |
Choosing a robo-advisor or a human advisor depends on the choice and
convenience of an individual. If an individual is not comfortable investing in a portfolio
which is assessed online, and he prefers to have some control over his investment, human
advisor suits him the best. If an individual is looking for a low-cost investment advisory
platform, he can choose to invest through robo-advisory. It is always better to weigh both
your investment options depending on your investing style before investing.
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(Insurance Advisor) and mutual fund ( Auto Investor ) needs. Just answer a set of very simple questions, and our automated results will suggest the best portfolio that suits your needs.