Robo-advisors, also known as automated investing services, are digital platforms that provide automated, algorithm-driven financial planning and investment services with little to no human supervision. They use computer algorithms and software to build and manage investment portfolios, and can include automatic rebalancing and tax optimization. Robo-advisors are a class of financial advisor that provide financial advice and investment management online with moderate to minimal human intervention. They offer digital financial advice based on mathematical rules or algorithms.

Some key features of robo-advisors include:

• Low fees: Robo-advisors are often offered for a lower fee than traditional investment management.
• Low or no minimum requirement: Traditional portfolio management services often require high balances, but robo-advisors typically have low or no minimum requirement.
• Automated portfolio management: Robo-advisors automate investment management so it can be done by a computer at a lower cost.
• Easy access: Robo-advisors offer easy account setup, robust goal planning, account services, and portfolio management.

Robo-advisors are good entry-level options if you have a small account and limited investment experience. However, they may not be suitable if you need services like estate planning, complicated tax management, trust fund administration, and retirement planning. Robo-advisors operate on the assumption that you have defined goals and a clear understanding of your financial circumstances, investment concepts, and potential investment outcomes.

Robo-advisors are extending into different aspects of financial advice, such as advising retail customers on how much money to spend versus save, how to plan for retirement and decumulation (selling off securities over time), and tax loss harvesting. The portfolios that robo-advisors offer are typically exchange-traded funds, but some offer portfolios of individual stocks. They employ modern portfolio theory, which minimizes risk for a given expected return. Some are designed for use with socially responsible investing, Halal investing, or strategies similar to hedge funds.

In summary, robo-advisors are digital platforms that provide automated, algorithm-driven financial planning and investment services with little to no human supervision. They are a good entry-level option for those with a small account and limited investment experience, and offer low fees, low or no minimum requirement, and easy access. However, they may not be suitable for those who need more complex financial services.