Once upon a time, investing to beat inflation rates and grow money in a relatively risk-free manner usually meant putting money into fixed deposits (FDs) and insurance savings plans, which offered slightly higher returns per annum (p.a.) compared to regular bank savings accounts that were offering rates of around 0.05% p.a.
These investment products are still around, but today, there are more choices in the market — even for risk-averse investors.
This is where robo-advisors come in. And they are exactly what they are: robots that are programmed with specific algorithms to help provide advice on investment choices. At first, investors had their reservations on this new product in the market, but today, robo-advisors have proven themselves to be rather handy in growing investments. In fact, there are a growing number of users who have been putting a portion of their portfolio into cash deposit accounts run by robo advisors.