Right Robot Advisor

Robo-advisors (robo-advisor) – these are programs based on special mathematical algorithms that evaluate the stock market and tell the investor how to build your portfolio and manage it in the future.

Large banks and brokers have robotic consultants. They are designed for customers with a small level of knowledge and experience. Services partially replace the expensive “live” financial advisor. They have a low entry threshold and low commissions..

Advisor robots work individually. First, they learn the characteristics of the investor:

• Amount of investments.
• Long-term investment.
• Risk Awareness.
• Desired yield.

The program analyzes the user input and selects the assets that correspond to them. Recommendations may include ETFs, mutual funds, stocks and bonds. Often portfolios are formed only from ETF funds. Commissions are lower than other financial instruments..
The first automatic advisors appeared in the USA in 2008-09. Investing became more accessible for people without expert knowledge, and the market began to grow rapidly. Cerulli Consulting Company assumes that by 2020 the volume of assets managed by robotic advisers will reach $ 500 billion.

Robo-advisers do not guarantee a profit and do not predict the future. These are assumptions about the most likely development of events. They are based on historical data, mathematical models and do not take into account non-technical issues. For example, if a company falls into a reputation scandal, sales will begin to fall. The program cannot see it in advance..

Sometimes the results exceed expectations, sometimes they do not reach them. But when investing in ETFs, everything is more stable. The index fund includes securities of many companies, therefore, excessive successes or failures of an individual enterprise almost do not affect the overall picture due to wide diversification.

Advisor Robots from Russia

Popular Russian services of robo-advising are served by banks and brokerage companies. They make it easy for beginners to get to know the investment world..

1. Robot Advisor Right

Right is a service that works with the Finam brokerage company. There is no need to pay for using an adviser – developers get profit from partnership with a broker.

Right helps you get a balanced portfolio of stocks and bonds. He analyzes companies fundamentally and distributes funds across different industries. This reduces the risk. Before starting, the user needs to specify the investment amount and risk level.

In addition to collecting a portfolio, the service manages it. He monitors the value and forecasts of securities, offers solutions: buy or sell. The customer only needs to confirm the operation.

• Minimum investment: 30,000 rubles
• Commission: no (only for broker services)
• Try the advisor robot from Right

2. Robo-Advisor from Finam

A well-known brokerage company has its own automatic adviser, made as a questionnaire page. It is necessary to consistently answer questions about the purpose of the investment, age, starting amount, the availability of other assets, the duration of the investment, experience and risk tolerance.

By specifying the risk profile, Robo-Advisor graphically shows and explains how much the value of securities can fall or rise during the year. He asks how an investor will behave in an unpleasant market situation..

As a result of the survey, an adaptive portfolio and investment strategy are proposed. The page immediately shows their composition and estimated annual yield. You can order an invoice with the proposed kit or ask for additional consultation.

• Minimum investment: 100,000 rubles
• Commission: no (only for broker services)
• Try Robo-Advisor from Finam

3. Robot Advisor from Tinkoff Investment

Tinkoff Robotic Advisor selects portfolios for investing in rubles or dollars. The service does not require an investor to have a deep understanding of the strategy. It is enough to indicate the currency, amount and additional criteria of the securities:

• Recommended by analysts (with a forecast of “buy” or “buy exactly”).
• With constant dividends.
• Only well-known companies (based on bank customer surveys and expert estimates).
• With growing revenue (over the past 3 years).
• With large capitalization.

The designer is on the Tinkoff Bank website and in the Tinkoff Investments app. Before buying a portfolio, you can find out its composition, distribution by industry, historical profitability.

The robot offers to invest from 2 thousand to 1 million rubles, or from $ 50 to $ 20 thousand. True, it is better to start with an amount of at least 10,000 rubles or $ 200. Otherwise, the potential profit will be reduced due to account maintenance costs..

• Minimum investment: 2,000 rubles or $ 50
• Commission: no (only for broker services)
• Website tinkoff.ru (section “investment”)

4. Yammi

Yammi is an automated Expert Advisor developed by Yandex.Money together with FinEx. He uses the mathematical model of the optimal portfolio from Nobel laureates – William Sharp and Harry Markowitz, tracks global dynamics, automatically controls risks. Money is stored on Yandex.Money wallet – replenishment or withdrawal is available at any time.

Portfolios in Yammi are formed by investing in ETF funds based on:

• Starting amount.
• Monthly replenishment.
• Investment period.
• Risk degree.

To manage the portfolio, the user has a personal account. In it, you can monitor progress, diversify assets, change risk profile, deposit and withdraw money. Investing with Yammi allows you to receive tax deductions from the state.

The first 4 months of service are free.

• Minimum investment: 5,000 rubles
• Commission: 1.5% per annum of the value of assets (but not less than 3.25 rubles per day).
• Try Yammi from Yandex

5. Simple investments from Sberbank

Sberbank’s robotic adviser also uses Markowitz and Sharp’s developments, analyzes the global market situation, but is also controlled by human experts. You can invest rubles and dollars, manage your portfolio from a computer or smartphone.

To select securities, you must specify the initial amount, monthly replenishment, term and level of risk. The rest has functionality similar to other robotic assistants from our review.

• Minimum investment: 100,000 rubles or $ 2,000
• Commission: 1.5% per year
• Try Simple Investment by Sberbank

6. Assistant from Alfa Capital

This consultant robot determines the profile of an investor through a survey. He asks about goals, priorities, deadline, principles of investment management. The structure of the selected portfolio is shown in a pie chart. The structure includes mutual investment funds of various sectors managed by Alfa Capital. A description of each of them can be opened by clicking on the name. You can add products to the package that are nominated not only in rubles.

• Try Assistant from Alpha Capital

7. Fins

Fins is an automatic investment assistant from the largest brokerage company in Russia – BCS. After registration, the service offers to pass a test for financial risk profiling. He clarifies the user’s income, investment experience, tools that he plans to use..

After passing the test, Fins shows a personal risk profile and offers to choose a portfolio that matches it – you need to specify the amount, currency and term.

The Fins account also has sections for managing personal accounts, analyzing bonds and structured products, deposits, and money transfers. You can add deposits, accounts and cards from different banks to the “My Assets” page in order to see how assets are distributed in one place and receive recommendations on the big picture.

• Minimum investment: 10,000 rubles or $ 150
• Commission: 0.3% (minimum 99 rubles)
• Try fins

Pros and Cons of Robo Advisors

Robotic assistants have low maintenance fees. This financial adviser will ask for his work a few percent of the investor’s annual turnover. And robots take no more than 1.5% per year or work for free.

Program decisions are not affected by emotions or personal gain. A person cannot be 100% protected from this. Even the strongest professional is aimed at the profit of two people: his own and the client. He also subconsciously finds himself under pressure from the market situation and the professional community..