Is robo-investing good?
Robo-investing has grown in popularity over the past few years. In 2020, it was estimated that robo-funds were used to manage a hefty $460 billion, and this figure is almost certain to grow in the future. Compare stocks and shares ISAs If youre planning to open a stocks and shares ISA, choosing the right platform is important. To help you narrow down the choices, weve created a list of some of the top stocks and shares ISAs. Lets take a closer look. Robo-investors automatically invest your money, for a fee. They work by allocating you a personal portfolio, likely composed of a mix of shares and bonds, based on your attitude to risk. Your risk attitude is determined by the answers you give to questions posed when you first sign up for an account. Robo-investors are straightforward to use and are available from a number of providers, including Nutmeg, Wealthify and Moneyfarm. See our investing solutions page for more options. Before the introduction of robo-advisors a decade ago, if you wanted to invest, you had to bury your head in company reports to choose stocks and shares yourself. Otherwise, you had to go to a financial professional who could manage a fund for you. A robo-investor simplifies both of these options in that you dont have to choose stocks yourself and you also dont need to meet with a human advisor. See our article on whether robo-advisors can replace financial advisors. However, it is worth knowing that some traditional investing giants, such as Hargreaves Lansdown, now give the option of investing into ready-made portfolios via their own platforms. These services are often low-cost and cheaper to use, so dont automatically assume that a robo-advisor is the best way to automatically invest. See our list of the best share dealing accounts for more options. While robo-investing may not be the absolute cheapest way to invest, it has a number of plus points. These all-too-common investing errors can cause you to miss out on the long-term wealth-building power that shares can hold. To help you side-step these pitfalls, and move forward on your path to wealth-building, weve created a free report, The 3 Worst Mistakes New Investors Make. Just enter you best email below for instant access to your free copy. Click here! 1. Fees are transparent  Perhaps the most obvious draw of robo-investing is the fact that the fees are clear. Usually, youll pay a percentage of what you invest and thats it.