A Big Robo-advisor is a new concept that maximizes the practical use of Robo-advisors.
Robo-advisors are used by a very small segment of the clients of a financial institution while a Big Robo-advisors are used by 100% of the clients with savings-investment products (deposits, stocks, funds, plans, ... ), large or small, experienced or not.
The clients of a Robo-advisor need to complete a specific questionnaire of risk profile while the clients of a Big Robo-advisor do not have to fill in anything. It is enough to know the flow of profit and loss of your portfolio of, at least, the last 3 months.
There will always be periods with better or worse results than expected. Given this, there are two possibilities:
- Take a decission that is based on the expectations you have at each moment
- Do not use expectations and apply, monthly, the DoR model - "Dynamic optimal Risk" - which consists in dynamically re-weighting the weights between stocks and bonds, adjusting them to the level of risk that maximizes the final return
DoR is a mathematical model, well contrasted, that provides quantifiable benefits and is replicable - it does not depend on the good moment of some people-. A reliable, rational improvement.
At the end of the month, you will receive a personalized recommendation of your portfolio that increases or decreases the weights of the variable income over the fixed one (maximum 3%).
In the long term, you will get an additional annual return of between 0.25% and 1% This is passive management 2.0 A touch of financial sophistication!