Lesson 3 · Foundations · Both · 18 min
Robo-Advice Overview
What robo-advisors automate—risk profiling, allocation, rebalancing—and where human advice still matters.
Objectives
- ▸Describe the robo advice stack end-to-end
- ▸Identify suitability / risk-profile obligations
- ▸Spot limitations (tail events, behavioural overrides)
- ▸Decide build vs partner for allocation engines
Typical flow: risk questionnaire → model portfolio → automated investing → periodic rebalance → tax-aware features in some markets. The ‘robo’ is rules + portfolio theory wrapped in UX—not magic alpha.
Key terms
Robo-advisorSuitabilityRebalancingModel portfolioRisk profiling