Many an advisor fears competition from Robo advisors. Will Robo advisors eat your lunch? Well, the answer is ‘yes’ if you just recommend a fund to a customer and help them do the paperwork. These days most forms can be filled online. Recommending a fund from a list or suggesting a group of funds is all too easy for AI.

Fund selection is in fact the easy part and no indicator of success. If markets go down, so do their corresponding funds. How the customer (and FA) react at such times will be the difference between success and failure. Different human beings respond differently to stress. Being the steady hand which guides your customer is something the robot cannot do. Convincing your customer to invest for longer periods of times when they would naturally prefer shorter holding periods is not yet within the capability of the Robo advisor.

As long as investing involves emotions you will have a role. This management of emotions has to be backed by a rigorous understanding of what you can do to ensure success. By what you can do, we mean the things which are in your control. If you want to learn about these controllable factors of investing through research driven, evidence backed process contact us on 92335481.

Oh, and yes, the robot can’t really eat your lunch. Yet!