Hey all Car Enthusiasts, this one is for you!
Automation is the buzzword in the 21st century. It is interesting to see companies delivering products and services for human consumption using the power of Automation. Look at the kind of cars that are being launched in the market today. Automatic transmission cars are a rage for the kind of convenience they offer over the regular manual transmission cars. Now there are reasons why Automatic Transmission cars are talk of the car manufacturing industry the same way Robo-Advisory is rage in the financial industry.
So for the car lovers particularly, we have listed a few features of the Automatic Transmission cars that are akin to the features of Robo-Advisory in Personal Finance. You’ll find it pretty compelling to get started with Robo-Advisory for these numerous benefits-
Easy to Operate
We all know that Automatic Cars are easier to drive as there is no clutch and we constantly need not change gears. The gearbox is intelligent enough to change the gears automatically. Simply put, this is a far advanced technology compared to a manual gearbox.
Similarly, with Robo-Advisory, we can take complete control over our personal finance. It gives us the power to assimilate our entire personal finance in one place. The best part of a full service Robo Advisor is that all aspects of our personal finance are connected and not treated in silos as in offline advisory model. Since all dots of our personal finance are connected and interlinked, we end up taking informed and intelligent financial decisions. This helps us to be prudent in our Personal Financial Management.
Gone are the days when Automatic Transmission cars were shunned by the mileage-conscious Indian car buyers. In fact, there are a few models where a CVT variant of the car returns more mileage than a manual variant. Also, in Automatic we have various options such as a purebred Automatic Transmission (AT), Automated Manual Transmission (AMT) and a far advanced CVT where gear ratios are split to increase efficiency and mileage. Since the advent of CVT technology, the historical problem of Automatics giving lesser mileage has been resolved to a large extent.
In Robo Advisory, the asset allocation is done by the algorithm which reads your risk profile before selecting specific asset class products for you. This means the portfolio given by the Robo Advisor is completely customized to your risk profile. Since the asset allocation is done in a scientific manner taking into account 15 factors in each of the MFs that is selected for you, the chances of your portfolio withstanding market slumps is very high. At the same time, the portfolios give handsome returns when the markets are on an upswing.
Beat the Traffic
Every car enthusiast knows that an Automatic Transmission Car is the best when it comes to choke-a-block city traffic. It is easier to put the car in Drive mode and just focus on the margins rather than changing gears every 2 minutes. Also imagine doing a 500 kms long drive, on an average you would change gears at least 150 times!
Being an algorithm, Robo Advisors can throw up millions of simulations to arrive at a customer’s portfolio which cannot be done in the offline advisory model. Hence the portfolios generated by Robo Advisors are more robust.
Why are you still in Manual mode?
We can clearly see signs of a morbid change in the Automobile industry that the future is in Automatic Transmission cars. Every manufacturer is vying with each other to have an automatic variant in each segment of the cars they operate in. The advanced CVT gearboxes are intelligent enough to reduce the lag factor and instant acceleration is also not a problem, historical reasons why car enthusiasts used to list as the reasons they prefer a Manual Transmission car. The future of automotive industry is definitely automatic, just as it is in any developed countries.
Similarly, in financial services, Robo Advisory is the disruption that has caught the eye of the Indian customer. At ArthaYantra, we see this leap of faith on a new form of disruption and it is manifested in more than 90,000 customers taking our services from 650+ cities and more than 30 countries. The future of Financial Services is Robo Advisory. Early adapters would gain immensely from pioneers like ArthaYantra.