Robo Advisor

• Optimization Engine
• Financial Content

The conventional investment methodology and overall goal followed by traditional brockareages and Wealth Management servieses is to orginate a well diversified portfolio with the greatest possible return for the smallest posible risk. For an individual investor, there are three ways to achieve this goal:

	The Do-It-Yourself way: You are responsible for your own decision.
	Hire an Investment Advisor: These people have been licensed to give investment advice through their extensive knowledge in the market. The downside is that their service is expensive.
	Use a Robo-Advisor: These are digital platforms that utilize artificial intelligence to make automated financial recommendations. A typical robo-advisor collects information about a client to know about their risk aversion level as well as financial goals in order to make the most appropriate recommendations

Why Investors Use a Robo-Advisor

If you want to take advantage of the power of artificial intelligence in financial planning or in other words, you want the benefits of having a financial advisor without having to pay the full price for a real one, robo-advisors are a solid option for you. They are basically complex algorithms that process a huge amount of financial data such as stock prices and volumes, news, and fundamental company data to arrive at the most appropriate decision. The first robo-advisor was launched in 2008. Named Betterment, it was in charge of rebalancing assets for buy-and-hold investors through a simple online interface. After many years of evolution, now these robo-advisors are capable of giving sophisticated investment advice for asset selection, tax-loss harvesting, or retirement planning. According to Charles Schwab, the number of Americans who use robo-advisory services will reach 17 million by 2025 and the number of assets managed by them will rise to 7 billion worldwide.

Most robo-advisors charge a flat fee from 0.2 to 0.5% annually compared to 1-2% charged by a typical financial advisor (not including other commissions). Moreover, if you have limited funds to start with, you may not be able to afford a financial advisor at all because most of them require their clients to put down at least $100,000 at the beginning. They are more suitable for high-net-worth individuals who need help with Wealth Management and have the means to pay for such services. On the contrary, most robo-advisory services have a very low initial investment requirement. Some even don't have a minimum at all.

Automated Portfolio Rebalancing

In the past, portfolio rebalancing was both a time-consuming and costly manual task. Thanks to the advent of robo-advisors, rebalancing a portfolio is now automated with little to no human supervision. All you need to do is specifying your investment horizon, objectives, and personal financial situation. If according to your investment objectives and risk aversion level, an allocation strategy of 30% blue chips, 50% growth stocks, and 20% fixed income is recommended, the robo-advisor will monitor your portfolio constantly to make sure it has the right balance. Since the prices of securities and bonds fluctuate on a daily basis, a price jump in one asset class or decrease in another may break the desired ratio. That's when the algorithm needs to step in and perform automatic rebalancing.

Macroaxis Modules

Macroaxis extends the capabilities of a typical robo-advisory service by giving more power and more control to investors. Our implementation of investment theory is based on simplicity, speed, accessibility, and enhanced user experience, making technology that was once accessible only to professional money managers, available to the entire investing community.

How Macroaxis Robo-Advisor Differs

We do not claim to run a typical robo-advisory service. Our goal is to enable investors to maximize return on their technology by comfortably using tools of professional money managers, but at the same time, utilize all the advanced features of investment automation introduced by robo-advisory platforms. From that perspective, the Macroaxis Wealth Optimization platform is not limited to a stockroom or inventory of robo-advising platforms. We don't sell anything and do not push any investment products. Rather, we use the power of mathematics to analyze your portfolio and offer various tweaks to increase the return on your investments with complete transparency but without fees or budget limitations. We help to diversify your portfolio and reduce risk using an unprecedented amount of functionality and easy-to-use modules to have all your portfolio optimized. If you want to see it in action, consider signing up for a free trial of our wealth optimization service.

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