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About Robo-advisors

Very simply, robo-advisors automate standard processes that human advisors go through in advice, analysis, risk-profiling, asset allocation, order management and rebalancing. They do this under the philosophy of passive investing which accepts that risk-taking through buying a broad mixture of asset classes like developed market stocks, emerging market stocks and bonds will give you inflation-beating returns good enough to fulfil financial goals. Robo-advisors exploit the low-cost advantage of passive investing to give superior returns compared to high-cost active investing.

Expensive selling and management fees are major disadvantages of unit trusts and other sales-driven platforms. Akru has zero sales fee, absorbs many other fees and uses cheap but effective ETFs. We earn our revenue through very affordable pricing. Akru avoids the high costs that have been proven to take a big bite out of returns.

At a fee going into thousands of ringgit, financial advisors or planners provide comprehensive financial plans for investment, insurance, tax, wills and so on. Their face-to-face approach allows you to have a financial planning experience with a human touch. Akru is involved specifically in investment management using digital solutions. The ability to deploy small or big investments according to high investment standards efficiently, speedily and cheaply means that a digitally automated platform is able to make the valuable work of a traditional investment advisor 2-4x times more cost-efficient.

Bank savings accounts are almost risk-free and are government-insured to a certain limit but earn very low interest. Akru builds your personalised portfolios by considering your specific needs and preferences. Such portfolios help you optimise your risk-taking in a way that is more efficient than a bank account leading to faster wealth accumulation over time.

DIY investing has a cost advantage because you avoid expensive sales and management fees when you buy stocks or ETFs directly. However, DIY has many big disadvantages including the tedious research and analyses necessary for successful investing. The maths and discipline for matching small-sized savings across higher-priced ETFs/stocks, allocation, trading foreign markets, and rebalancing are also challenging. The highest cost of DIY has to be the behavioural drag of failing to invest because you’re too busy or if the complicated maths deter you or if you’re too emotional in making buy/sell decisions. Emotions and the lack of discipline which stop investing are the biggest negative impact on long term returns from DIY investing, making it better suited to professionals or serious hobbyists. (See also, Why shouldn't I just invest in the ETFs you have chosen on my own?)