How does Selma differ from a classical robo-advisor? 🤖💸
What is a Robo-advisor? And how does Selma differ from one?
Robo-advisors are slowly becoming more and more popular around the world. What started as a small hype in America is step by step reaching Switzerland. But what is a robo-advisor exactly? And how does Selma Finance differ from one?
🤖... stands for an online investment service that uses algorithms to pick and trade your investments. Robo-Advisors usually offer low-cost 5–20 standard portfolios and little personal support.
🙎🏽... describes the job of a person who delivers personal service for the wealthy clients (1 Mio+ CHF). In short, Private Bankers pick and take care of your investments in a way that fits with your finances.
🤓 Selma combines both worlds. Selma creates individualized investment strategies and uses algorithms to pick and trade your investments.
A detailed comparison
|Service fee (p.a)||~0,5–1,0%||expensive||0,72%|
|Product costs||vary||vary||av. 0,22%|
|Investment adjustments to market||✅||✅||✅|
|Investment adjustments to life||❌||✅||✅|
|Measuring under- and overvaluations||❌||?||✅|
|Human support 👋||❌||✅||✅|
|Step-by-step buying strategy||?||✅||✅|
|Developed with clients||❌||❌||✅|
How are my investments picked?
... have standard basic investment ETF portfolios. In most cases, you'll either choose one of these portfolios yourself, or the robo-advisor assign you a risk category based on a few financial questions.
With robo-advisors, it's up to you to understand how the suggested investments work with your other financial situation – e.g. loans, savings, other investments... 🤔
Your financial situation and reasons to invests are unique to you. Selma takes a good look at each client's finances, so that everyone gets a unique mix of ETF investments.
Instead of making you guesstimate, Selma suggests you a mix of investments that match with your financial life, goals and the risk you want and can afford to take. 👋🤓
What happens with my investments?
Most robo-advisors monitor the financial market automatically.
Robo-Advisors trade and tweak your investment plan (your strategy) with algorithms and little human involvement.
Robo-advisors don't look at your financial picture. It's up to you to make sure that the things you invest in make sense for you and the changes of your money situation. 🙄
Selma keeps your investments balanced with the financial market and your financial life. Like a Robo-Advisor we keep an eye 24/7 on the market, like a Private Banker we keep an eye on your financial life.
Whenever you update Selma about changes concerning your money (new job, mortgage...), we'll check your investments for you, so that you don't take unnecessary risks. 👍