By Henrike Hein, Feb. 11, 2023
What is a Robo-advisor, what are the pros and cons?
Are robo-advisors dull robots and can they be trusted to invest money?
Robo-advisors are actually automated asset managers. They work according to
standardized procedures and predefined algorithms, they make automatic
recommendations for investments and can also implement them. They thus offer
the possibility of managing portfolios cheaply and effectively and
conveniently from home without having to go to the bank.
Automated and still individual …
Robo-advisors offer several advantages:
Personal investment strategy: The investor's investment objectives,
sustainability preferences, risk appetite, wealth of experience and
financial situation are all taken into account. On this basis, an
appropriate portfolio is proposed. If the customer agrees with the
investment proposal, a securities account is opened and the investment
strategy is implemented.
Algorithm-based portfolio management: In the investment period, the
robo-advisor (in most cases) acts without prior coordination based on
Data-based: The robo-advisor acts rationally based on data and
calculations and human errors of judgment are thus minimized.
Reasonable price: Due to the automated process, the investments are
usually cheaper than funds put together manually by portfolio managers
Digital: Most offers are provided online and can be accessed without
If you invest in ETFs, you don't need a robo-advisor.
When choosing a robo-advisor, it's worth taking a closer look and paying
attention to the following:
However, of the 30 or so robo-advisors in Germany, only three invest in
individual shares. The rest, in turn, invest in ETFs, funds and bonds that
are not consistently sustainable. The robo-advisor thus forms mixtures of
mixtures. However, these cannot be optimally combined as a result. In
addition, most funds and ETFs are already highly diversified individually
– so you don't necessarily need a robo-advisor to put them
Minimum deposits: Many providers require sometimes very high minimum
Sustainability: Robo-advisors that invest in ETFs, for example, are
not consistently sustainable because ETFs are usually not consistently
sustainable, as we have highlighted elsewhere. The robo-advisors that invest
in individual stocks hardly offer any sustainable investment options.
Shares for all!
Robo advisors are digitizing asset management and lowering the entry barrier
for private investors to their own individual portfolios. The broader
accessibility thus democratizes the stock market. Our goal is to make the
financial market greener and more diverse. That is why we have developed our
own Robo-Advisor, which develops risk-return optimized portfolios of
individual stocks with a consistent sustainability claim.
Only sustainable stocks are included in Goldmarie Finanzen's portfolios in
order to create an optimized portfolio. Investors thus benefit from the
advantages of individual shares, i.e. high returns, transparency and
participation, and from the advantages of funds in terms of diversification
and risk minimization.