1. Two companies have been investigated recently, and robo-advisors have returned to the field of vision
On April 13, a news from the Shanxi Securities Regulatory Bureau on the official website of the China Securities Regulatory Commission left a “king bomb” in the field of robo-advisors, and robo-advisors returned to people’s vision.
The Shanxi Securities Regulatory Bureau mentioned in the article[3.15 Investor Protection Sunshine Action Month]”Robo-advisors are suspected of violating regulations in sales of funds, and the China Securities Regulatory Commission will strictly investigate”: two robo-advisor companies, Rubik’s Cube and Latte Financial Management, failed to obtain funds. Sales qualifications were investigated and dealt with according to law.
But here comes the question, what is a robo-advisor? What is the pattern? What are the problems? Here, the questions from the judges will be answered one by one by the Haodai Gold Consultant.
2. What is robo-advisor, what are its advantages, and what is its structure?
Haodai Gold Consultant believes that robo-advisor is to use machines or certain technologies to help or guide investors to invest. At present, the distribution of robo-advisors in foreign countries is obvious, and the competition is fierce; while domestic robo-advisors are mixed and chaotic.
1.Let me first talk about what robo-advisors are and what are their advantages
Robo-Advisor usually refers to Robo-Advisor, which uses a series of intelligent algorithms and theoretical models such as investment portfolio optimization to provide users with the ultimate investment reference based on the risk tolerance level, income goals, and style preferences provided by individual investors. And provide advice on the dynamics of the market on the rebalancing of asset allocation.
As the name suggests, its advantages are also obvious:
(1) Popularization of investment
Even if an individual does not reach the million-level wealth management threshold of a private bank, it is possible to enjoy extremely professional and personalized wealth management plan services.
(2) Optimal asset allocation
According to different people’s attitudes towards risks and returns, different asset portfolios are established to optimize asset allocation.
(3) Overcoming human weakness
compared to real peoplerobotIt is calm, without emotional fluctuations, only rational judgment. Therefore, Robots can help users make objective judgments and overcome human weaknesses.
(4) Reduce transaction costs
The models and algorithms of the robo-advisory platform are applicable to every user. Therefore, as far as individual users are concerned, robo-advisory platforms usually only charge a small service fee. Domestic robo-advisory platforms charge service fees in different ways. Some charge service fees based on the total amount of investment, some charge service fees based on floating income, and some rich and powerful platforms do not charge service fees. Of course, transaction fees are inevitable for every platform. At the same time, robo-advisors break the rules of traditional investment advisors to make profits based on transaction commissions, save unnecessary transactions, and can also appropriately reduce transaction costs.
2.Robo-advisor global market structure
Foreign robo-advisors started very early. According to the data of the U.S. Financial Regulatory Authority, the initial prototype of robo-advisors was born in the investment research system—financial institutions used technological means to assist financial practitioners in user portraits and preparation of sales materials. Evolved to provide asset allocation and optimize investment portfolio.
In the late 1990s, intelligent investment tools directly oriented to individual investors began to appear. In 2005, the American Institute of Securities Firms issued a document allowing securities brokers to use investment analysis tools to help clients manage their finances, establishing a legal basis for robo-advisors.
After the 2008 financial crisis, some start-up companies, many of which came from the technology industry, such as Wealthfront, began to provide customers with a variety of investment service tools.
Around 2015, traditional financial institutions began to actively deploy and develop their own robo-advisory products. However, with rich customer re