Have you ever tried a robo advisor or artificial intelligence to invest?

Ricardo1980

Hello,

Seems these kind of services are very new. Basically, rather than having a fund managed by a human, there is a computer program or algorithm that does it, using AI and/or Big Data, and because of that fees are smaller.

At the moment I only know one that offers an ISA, this one (check the diagram and play with those values):
https://uk.scalable.capital/

Did you use it?
Do you know similar providers?
What do think about this new way of investing?

Thanks a lot.

dunstonh

Seems these kind of services are very new.

About 4-5 years now.

Basically, rather than having a fund managed by a human, there is a computer program or algorithm that does it, using AI and/or Big Data, and because of that fees are smaller.

No. That is what they like you to think. In reality, the fund is managed the same way as any other multi-asset passive fund. For example, our robo-advice offering uses L&G Multi-index funds C class. Some of the others use state street or vanguard etc.

At the moment I only know one that offers an ISA, this one (check the diagram and play with those values):

They virtually all offer an ISA.

Did you use it?

No. We offer it but don't use it personally.

What do think about this new way of investing?

It will be the future at some point in the future. For middle aged to older investors they will typically use IFAs or DIY using the conventional DIY options. For the younger generations that measure quality by facebook likes, online reviews (usually a good many fake) and if the app looks good, they will prefer robo-advice. It wont matter about quality of the investment or probably not even cost.

Ricardo1980

dunstonh wrote: »

About 4-5 years now.
They virtually all offer an ISA.

Thanks for reply!
I wanted to say similar services (robo advisors or automated portfolio managers), not the ones that offer ISAs. Thanks.