How Is Automated Investment Advice Different From Traditional Financial Advisor

Whenever you are looking for some piece of advice in your financial business or related to the investment in any business there are two ways through which you can get these. One of the way is the traditional financial advisor that is a person who is there to suggest you or provide you guidance with your investments and financial planning. He keeps in consideration all your profile, keeps track of market shifts and make sure that your portfolio is balanced which means that your investments should be balanced in all sectors.

You should not invest too much in one sector whereas your investment is nothing in the second sector. The traditional financial advisor earns through charging fee for his services from the client. In many cases his earning is based on the investment of the client, for clients who invest less than one million, the financial advisor charge approximately 1 %. Along with this fee, they buy mutual funds with you that makes the total of 2 % of the investment and they charge this fee annually. Obviously, this fee is quite heavy but for some person giving you his full potential so that you could reap considerable profit out of your investment it may be not as heavy as it seems for you.

The second method through which you can get the financial advice does not involve the intervention of human and involves the digital assistance through the automated computer program that gives you the financial advice. In this program the client has to give input at the front end of the program through which the program will start its processing. Unlike the traditional financial planner these programs or commonly known as financial advice superannuation software charge a very less fee. These programs just charge you a fraction of the management services that these provide. Once you are done with the inputs and selection of your investment than the next procedures are automated and you are free from the stress of balancing your portfolio and all of these tasks are handled by the automated investment advisor.  The best thing about the automated advisor is that these will follow the principles that are calculated and are proven to be efficient and accurate but a traditional advisor will not follow that. His measures will most likely be based on the experience and estimations. But the very reason that people are more likely to choose the automated investment is because of the fee structure that these offer. These genuinely charged half than the traditional investment advisors.