Goal: Learn how to use robo-advisors to build, manage, and optimize your portfolio with minimal effort.

1. What Are Robo-Advisors?
Definition: Digital platforms that use algorithms to create and manage portfolios based on your goals, risk tolerance, and timeline.
– Key Features:
– Automated rebalancing.
– Low fees (0.2–0.5% vs. 1–2% for human advisors).
– Goal-based investing (retirement, travel, home purchase).

How They Work:
1. Quiz: Assess your risk profile and goals.
2. Portfolio Creation: Allocate funds across asset classes (equity, debt, gold).
3. Auto-Invest: SIP or lump-sum investments.
4. Rebalance: Adjust holdings to maintain target allocation.

2. Top Robo-Advisors in India (2023)

3. How Robo-Advisors Build Portfolios
Example: Retirement Planning
– Input: Age 30, moderate risk tolerance, ₹10,000/month SIP.
– Output:
– 70% Equity (Nifty 50 Index Fund + Mid-cap Fund).
– 20% Debt (Corporate Bond Fund + PPF).
– 10% Gold (Sovereign Gold Bonds).
– Rebalancing: Quarterly adjustments to maintain ratios.

Tax-Saving Example:
– Input: Save ₹1.5L under Section 80C.
– Output: Mix of ELSS, PPF, and NPS.

4. AI Tools for Advanced Investors

5. Benefits vs. Limitations

Tasks for you.
1. Try a Robo-Advisor:
– Sign up for ET Money or Kuvera, take their risk assessment quiz, and review the suggested portfolio.
– Example: Kuvera’s Free Financial Plan.

2. Compare Platforms:
– Input the same goals (e.g., ₹50L in 10 years) into Groww and Scripbox to see portfolio differences.

3. Experiment with AI Tools:
– Use Trendlyne to screen for “high ROE + low debt” stocks (e.g., Asian Paints, Pidilite).
– Explore a Smallcase thematic portfolio (e.g., Digital India with Infosys, Zomato).

Key Takeaways
1. Start Small: Use robo-advisors for core holdings (70% portfolio) and self-manage satellite bets (30%).
2. Hybrid Approach: Pair robo-tools with human advice for complex goals (e.g., estate planning).
3. Track Performance: Most platforms provide dashboards to monitor returns vs. benchmarks (e.g., Nifty 50)

Common Indian Investor Questions
– “Are robo-advisors safe?”
Yes! They’re SEBI-registered and use secure APIs (e.g., Groww uses BSE’s infrastructure).
– “Can I switch platforms later?”
Yes—transfer holdings via CAS (Consolidated Account Statement).
– “Taxation on robo-portfolios?”
Same as mutual funds/ETFs (LTCG: 10% on equity after ₹1L profit, 20% with indexation on debt).

Sample Robo Portfolio (Moderate Risk)