Can Robots Grow Your Money?

Efficient, low cost and easy to access, these high- tech financial advisors may perform better than their human counterparts
 

- Teena Jain Kaushal

Amit Kumar, 36, is a salaried professional working in Bengaluru. He wants to open a fixed deposit (FD) to save for his child’s education but keeps delaying it. The reason: Last time he was at his bank to seek advice on saving/investment options to buy a house, he was sold a high cost insurance policy. “I was told it works just like an FD. But when I wanted to withdraw the money, I came to know there was a lock-in period and I could not draw it immediately. I do not trust them with my finances now.”

Much like Kumar, most of us made have made at least one investment that we regret later. It is especially true if you are young and uninitiated – without much knowledge of the increasingly complex world of savings and investment and without access to top-grade financial advice, which comes at a premium. Be it your neighbourhood broker or the corner bank, portfolio managers or sales folks, not many in India do a need based analysis before offering a financial product. And questions are rarely asked about risk profile, the purpose of the investment, time horizon, ongoing schemes or future goals. Usually, products that earn maximum commission are pushed.