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Why robo-investing is not the way to go as yet

The article from Moneycontrol discusses the limitations of robo-investing, particularly in the Indian context. It highlights that while robo-advisors offer convenience, low costs, and accessibility, they fall short in several critical areas. Firstly, robo-advisors often lack the ability to provide personalized advice that takes into account an investor's unique financial situation, risk tolerance, and life goals beyond simple algorithms. They typically use generic models which might not adapt well to sudden market changes or individual investor needs. Additionally, the article points out the issue of limited investment options, where robo-advisors might not offer access to a broad range of investment products like mutual funds, stocks, or alternative investments. There's also a concern about the lack of human touch, which is crucial for complex financial planning, emotional support during market downturns, and nuanced decision-making. The piece concludes by suggesting that while robo-investing can be a starting point for new investors or for managing small portfolios, for comprehensive financial planning, human advisors still hold a significant edge due to their ability to understand and adapt to the complexities of individual financial lives.

Read the Full Moneycontrol Article at:
[ https://www.moneycontrol.com/news/business/personal-finance/why-robo-investing-is-not-the-way-to-go-as-yet-12975640.html ]