Do you trust AI to invest? According to a recent study by Fidelity, 1 in 10 investors do exactly that.
This consumer alert explores the growing trend of using artificial intelligence for investment management. According to research from Fidelity, 1 in 10 investors (ages 23-38) trust AI-powered “robo-advisors” to help millennials (ages 23-38) make investment decisions. ) She is twice as likely as an elderly person to use this technology.
Robo-advisors are digital platforms that use artificial intelligence and machine learning algorithms to automate investment decisions with little or no human oversight. Users typically answer online questions about their financial situation and goals, and the platform generates an automated investment strategy.
“If your situation is very simple, very easy to understand and navigate – if you have money that you want to invest or you’re just getting started in the investment game – then that might not be a bad place to start. ” said Jarrett Felton, Founder and Managing Director of Investsent. “It’s a step above DIY and DIY.”
When considering a robo-advisor, Felton recommends checking the agency offering the service, how long the service has been available, and checking ratings and reviews.
Robo-advisors can be a good option for younger investors or those with less complex financial situations, but as your financial situation changes, such as getting married, having children, or receiving an inheritance, the need for a human advisor becomes more likely. Felton warns.
News10NBC consumer research reporter Deanna Dewberry has compiled a list of links to top robo-advisors.
CNBC Selection: https://www.cnbc.com/select/best-robo-advisors/
Choose a bank rate: https://www.bankrate.com/investing/best-robo-advisors/
Nerdwallet’s selection: https://www.nerdwallet.com/best/investing/robo-advisors
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