Robo advisors: Affordable, professional investment management

As more investors enlist the help of robo advisors to automate day-to-day investing, it's important to understand how they work and what they offer before choosing one for your finances.

  • By Fidelity Learning Center
  • Facebook.
  • Twitter.
  • LinkedIn.
  • Print

In today's fast-paced world, many people don't have time to research investments, constantly monitor or analyze the markets, and manage their portfolios each day. Others may want to pay a professional to handle some financial decisions for them, but still want to be able to monitor their accounts online 24/7 without having to sit down in person with a traditional advisor. This is where robo advisors can help.

What's a robo advisor?

How do robo advisors work?

What's a hybrid robo advisor?

Can a robo advisor help manage some of the risk that comes with investing?

All investing involves risk and the potential to lose money, due to inevitable fluctuations in the markets that happen over time. Robo advisors can help manage some of that risk by helping you build a diversified investment portfolio, monitor the markets, and rebalance your investments. Using their technology, robo advisors can manage and make adjustments to your account to help your portfolio and investing goals stay on track.

That being said, not all robo advisory services are alike and some may not be the right fit for every investor. When choosing a robo advisor for your investments, it’s important to research and compare options to find a service that’s a good match for your financial goals and preferences. Something to also consider is if you’re comfortable relying on a digital investment advisory service to help manage your investments.

How do I know if a robo advisor or hybrid robo advisor is right for me?

If you agree with the statements below, a robo advisor might be right for your current situation:
  • I'm looking for an affordable, professionally managed account so that my money is invested instead of just in a savings account.
  • I'm willing to pay a fee for someone to make investment decisions for me.
  • I want to be able to access and interact with my account online, so I can track the progress of my investments whenever I want.
  • I'm comfortable having someone else automatically rebalance my portfolio (when needed) so that it stays in line with my investment goals.
  • I don't need direct access to a dedicated professional financial advisor to ask questions, discuss my investments, or plan for the future.

If you think you’d benefit from having access to a professional financial advisor through phone or video calls, you may want to consider a hybrid robo advisor for help with investing and basic financial planning.

Next steps

Fidelity Go® offers low-cost professional money management.

Fidelity® Personalized Planning & Advice combines an affordable managed account with financial advice.

Learn how diverse portfolios can help manage risk over time.

  • Facebook.
  • Twitter.
  • LinkedIn.
  • Print
close
Please enter a valid e-mail address
Please enter a valid e-mail address
Important legal information about the e-mail you will be sending. By using this service, you agree to input your real e-mail address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an e-mail. All information you provide will be used by Fidelity solely for the purpose of sending the e-mail on your behalf.The subject line of the e-mail you send will be "Fidelity.com: "

Your e-mail has been sent.
close

Your e-mail has been sent.