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Biz News Korea(Eng)
Robo-advisor almost free to be available in Korea next mo
- Collected
- 2016.07.26
- Distributed
- 2016.07.27
- Source
- Go Direct
According to an unnamed official at the Financial Supervisory Service (FSS) on Monday, the financial regulator is contemplating business plan by a company called AIM to service robo-advisor and could approve business within this month.
The startup proposes to provide automated investment guidance by charging service fee of 0.5 percent in partnership with Korea Investment & Securities Co. Typical robo-advisory services in Korea charge 2 percent. The online service is able to provide cheaper rate by saving marketing cost.
Robo-advisory investment services have become available in Korea since last December, but they drew lackluster response because of relatively costly service charge. In the United States, leading robo-advisors Wealthfront Inc. (0.25 percent) and Betterment LLC (0.15-0.35 percent) are available at fees under 0.5 percent range.
To use the new robo-advisory investment tool, users should download the AIM app to smartphones to sign a contract to receive automated online wealth management services and choose whether they prefer aggressive or conservative investment strategies. Then the robo-advisor will provide tailored investment portfolio encompassing a wide range of domestic and overseas exchange-trade funds based on its sophisticated algorithms. Users can opt to make an investment by placing an order based on the advice, or replace the advice with another if necessary.
By Choi Jae-won
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]