Automated portfolio management will soon become the norm in investment management industry. This is because it is a low-cost unbiased tool for investors, and can be used as a resource for traditional wealth managers to provide a broader range of financial solutions while mitigating limited servicing capacity and costs.
By using algorithms based on modern portfolio theory or the variance of it to produce the most viable and profitable investment strategy and portfolio for investors, robo-advisors are the second wave in the financial technology (fintech) space.
