This is where the best robo advisors Australia help to lessen the gap between professional and novice investors.
Robo advisors use modern technology and algorithms to help traders make better decisions. In doing so, they make it easier for the average investor to make a profit.
Here are the top rated robo-advisors in Australia:
1. Quiet Growth
If you aren’t planning on investing too much money, then Quiet Growth can be an excellent option for maximizing your returns while minimizing your effort. With this robo advisor, you are expected to do the bare minimum. The algorithm is in charge of the automation of numerous trade decisions.
This robo advisor also uses Modern Portfolio Theory Investment methodology to determine your level of liquidity in retirement. This among other details makes it easier for the robot to calculate how much risk you can comfortably take on.
Quiet Growth lets you decide between five portfolios. Each of these allows you to invest in asset classes such as Australian shares, International Developed Markets, International Emerging Market Shares, Dividend Shares, Bonds, and Natural Resources.
The fee associated with this robo advisor is quite reasonable. To begin with, it doesn’t charge you any brokerage, advice, platform registration, or contract fees. You are simply charged the following based on your balance:
- $3,000 to $10,000: 0% per year
- $10,001 to $30,000: 0.6% per year
- $30,001 to $200,000: 0.5% per year
- $200,001+: 0.4% per year
2. Stockspot
The main concept behind Stockspot is to simplify investing for everyone. This advisor will help you to build a custom portfolio using ETFs. Therefore, regardless of your current situation, you can create a portfolio that is completely suited to your needs.
Stockspot offers four portfolios – Topaz, Emerald, Turquoise, Sapphire, and Amethyst. These coordinate to the level of risk – and growth – that you are willing to take on. There is something for everyone regardless of whether you want to be conservative or experience aggressive growth.
Using Stockpot, you can invest in Australian shares, global shares, emerging markets, bonds, and gold. To begin with, you have to invest a minimum of $2000. These are the tiers involved in the structure:
- Bronze: $2,000 – $10,000 with a monthly management fee of $5.5 after the first 6 months
- Silver: $10,001 – $50,000 with an annual management fee of 0.66%
- Gold: $ $50,001 – $200,000 with an annual management fee of 0.66%
- Platinum: $200,001 – $2,000,000 with an annual management fee of 0.528%
- Diamond: $2,00,0001+ with an annual management fee of 0.396%
What makes this option such a good robo advisor, though, is that it boasts personalized investment advice. In addition, the portfolios are constructed to help with stock and dividend growth. Furthermore, activities such as rebalancing and reinvesting can help to keep your portfolio as robust as possible.
3. InvestSMART
Are you trying to minimize your investing workload with a robo advisor? If so, InvestSMART is one of the best options for you. Getting started with this platform and advisor is incredibly simple. All you have to do is answer a series of questions. This will help the software determine what your investment goals are and just how much risk you are willing to incur.
InvestSMART gives you nine portfolios to select from:
- Diversified Income
- Core Growth
- Equity Income
- Interest Income
- Hybrid Income
- Equity Growth
- International Equities
- Properties and Infrastructure
- Small Companies Managed Fund
This immediately shows that this advisor has something for all kinds of investors. Furthermore, this advisor makes it easy for you to automate all of your decisions. This includes rebalancing your portfolio. There are also reminders whenever you meet a particular goal. Then, you are encouraged to alter your trading strategy accordingly.
You are charged fees on a tiered basis:
- $10,000 to $18,000: $99 per year
- $18,000 to $82,000: 0.55% per year
- $82,000+: $451 per year
You will also be expected to pay a brokerage fee of $5.50 per trade or 0.11%.
As an added bonus, this robo advisor also provides you with built-in tax effectiveness. Each of the portfolios is automatically set up for maximum tax efficiency. You are also provided with everyday tax-loss harvesting and tax-effective rebalancing.
4. Clover
If you want a robo advisor that can help you cut down on all the fees typically involved in investing, then Clover is a great choice for you. There is no need for you to pay any fees for opening an account, getting advice, or even rebalancing your portfolio.
The only fee that you are expected to pay is the Clover fee. This is dependent on your account balance like so:
- $2,500 – $10,000: $5.0 per month
- $10,001 – $50,000: 0.65% per year
- $50,001 – $100,000: 60% per year
- $100,001 – $500,000: 0.55% per year
- $500,001+: 0.45% per year
The Clover portfolios are based on ETFs that offer the greatest returns while minimizing your risk. There are four portfolios for you to select from Conservative, Moderate, Balanced, Growth, and Aggressive.
Regardless of which one you choose, you will be automatically investing in Enhanced Cash, Fixed Income, Global Developed Shares, Australian Shares, Australian Listed Property, and Emerging Market Shares. The portfolio that you select will determine just how much you invest in each asset class.
Clover will keep an eye on your portfolio for you. Whenever they feel that it is necessary, they will make the necessary adjustments. An interesting feature of this robo advisor is that it gives you the option to invest in socially responsible enterprises as well.
5. Six Park
Six Park offers a level of expertise that isn’t typically found with such services. This is because the algorithms are based on some of the top professionals in the investing world. As a result, there is a higher chance of your account showing a profit, even though you don’t have to make much of an effort.
There are four portfolios that you can select from – Conservative Portfolio, Conservative-balanced Portfolio, Balanced Portfolio, Balanced-Growth Portfolio, and Aggressive Growth Portfolio. Six Park has a history of showing good returns, regardless of the type of portfolio.
With this robo advisor, you have the option of investing in the following asset classes:
- Australian shares
- International shares
- Listed international properties
- Emerging market shares
- Global infrastructure
- Australian fixed income/bond
- High yield cash assets
There are a number of advantages offered when you sign up with Six Park. To begin with, there is a heavy focus on diversification. This is adjusted according to your perceived risk appetite. Furthermore, the advisor undertakes a lot of management on your behalf.
For instance, your portfolio is rebalanced without incurring any charge. This makes it easier for you to stay on top of your investment goals. What’s more, you are provided with regular reports so that you are aware of exactly what is going on with your portfolio at all times.
Considering that Six Park is such a renowned advisor, the fees are actually quite reasonable. For instance, if your account has only around $10,000, you will only be charged $50 a year. You get quite a set of features for this cost and so, it is a great option for most traders.
Robo Advisors in Australia
This concludes the list of some of the best robo advisors in Australia. There is a fair amount of variation between services, features, fees, and more. As such, it will be quite easy for you to find one that is well-suited for what you are looking for.
Irrespective of your choice, though, you can be certain that your investment will be made a great deal easier. As each of the above options offers up a refined service, you can expect great investments to be made on your behalf with minimal hassle. Thus, you will be able to enjoy quite a number of rewards without having to make much effort at all. This is an excellent choice for new traders or those who don’t have much time to devote to investment.
Good.