Quite simply, a robo-advisor is an automated online investment advisory service. This type of wealth-management solution has been gaining a foothold in the asset management industry of late. Along with providing automated, algorithm-based portfolio management advice, some robo-advisors offer automatic portfolio rebalancing and tax-loss harvesting.
A robo-advisor provides investors with automated, algorithm-based portfolio management advice without the use of human financial planners. Robo-advisors use the same software as traditional advisors, but usually only offer portfolio management and do not get involved in more personal aspects of wealth management, such as taxes and retirement or estate planning.