• Asset Allocation : These services use advanced algorithms to determine optimal asset allocation based on an investor ’ s risk profile and investment horizon , ensuring a diversified portfolio that aligns with the client ’ s objectives without requiring manual intervention .
• Portfolio Rebalancing : Robo-advisors automatically monitor and rebalance portfolios to maintain the desired asset allocation , adjusting for market fluctuations and changes in the client ’ s circumstances , thereby ensuring that the portfolio remains aligned with investment goals .
• Tax Strategies : Robo-advisory platforms can implement tax-efficient strategies such as tax-loss harvesting and asset location optimisation , helping to minimise tax liabilities and improve after-tax returns for investors , which investment managers can integrate into their service offerings to enhance client outcomes .
122 August 2024