According to Statista, the value of assets under management in India in the Robo Advisors segment amounted to just $7 million in 2017. That results in a per capita investment of $406.73 this year. That’s a drop in the bucket compared to the assets under management that are expected in the Robo Advisors category in India between 2017 and 2021, with a compound annual growth rate of 97.4%. Experts readily agree that the total value of assets under management with Robo Advisors in India will be worth approximately $100 million by 2021. Additionally, some 200,000 traders and investors are expected to be using Robo Advisors by that time. Compared to the USA, where Robo Advisors are adopted across the board, the total value of assets under management is some $182.505 billion.
Why Are Robo Advisors So Popular in Canada, the US and Europe?
Part of the problem with investing is understanding the investment terms, investment phraseology, investment landscape, and investment dynamics. These complicate the process of making investments in stocks, commodities, indices, currency pairs and the like. Financial services have evolved – thanks to innovative financial technology (FinTech) – to allow regular investors to dabble in the markets. People have long been seeking do-it-yourself-style investments, and one of the simplest ways to do this is a Robo Advisor.
The technology is sufficiently advanced today to make it possible for individuals to successfully implement trading and investing activity via this high-tech platform. A Robo Advisor is not a robot; it is a financial advisor offering a full range of services to clients. They are not automatons – they simply exclude human beings from stock selection. The fact of the matter is that humans are not adept at choosing stocks for clients. If they were, we would all have a much higher success rate in the financial markets. Fortunately, Robo Advisors are managed and controlled by human beings, meaning that all customer service interactions will be conducted with real human beings.
Robo Advisors Dramatically Cutting Costs in India
Traders across India get to enjoy the same Robo Advisor benefits from these services, like in Canada. Today, Robo Advisors are used for managing increasing components of personal financial portfolios. There are many benefits to using Robo Advisors in your day-to-day operations. For starters, these resources can provide up to 98% of the data, knowledge and information-based resources that are needed to begin trading and building a financial portfolio.
There are many other benefits including Light Advice (information varies from one company to the next), improved investment options over mutual funds, an easy and effective way to invest your capital, easy to implement contribution methods, and the like. The websites that provide Robo Advisors are equally appealing to users, meaning that it’s click and pick functionality for the layman.
Some financial writers have likened Robo Advisors to set and forget ways of investing. It should be stressed that Robo Advisors are not an impersonal way of taking money from you through robotic mediums of exchange. The FinTech Enterprises offering Robo advisor services are geared towards making it easier for anyone to invest money through smart technology. It’s a DIY option for those who eschew big banks, financial corporations, and brokers in their ivory towers.
You can conduct purchases of exchange traded funds, stocks, bonds, Forex, indices and commodities at your leisure. Most importantly, Robo Advisors are cutting costs and saving investors a tonne of money over the long-term. This is true in Canada, and it is a new reality in India today too. Within 4 years India will be a power player with this FinTech technology, and the trends are already showing strong signs of growth in this arena.