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What are the risks associated with robo-advisors?

Curious about robo-advisor

What are the risks associated with robo-advisors?

While roboadvisors offer several benefits, there are also some risks associated with using them. Some of the potential risks include:

1. Technical glitches: As with any technologybased service, there is always a chance of technical glitches or system errors, which could impact the accuracy of the advice provided.

2. Lack of human interaction: While some investors may prefer the convenience and efficiency of using a roboadvisor, others may miss the personal touch of working with a human financial advisor.

3. Limited customization: Roboadvisors typically offer predesigned portfolios, which may not be suitable for every investor's unique financial situation and goals.

4. Market volatility: Roboadvisors rely on algorithms to make investment decisions, which may not always account for sudden market changes or unforeseen events that could impact investments.

5. Cybersecurity risks: Any online platform can be vulnerable to cybersecurity threats, so investors must ensure that their personal and financial information is protected.

It's important to note that like any investment, there is no guarantee of returns and investors should always carefully consider the risks before investing.

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