From the course: AI in Fintech Essential Training

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AI and its coming role in robo investing

AI and its coming role in robo investing

From the course: AI in Fintech Essential Training

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AI and its coming role in robo investing

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- [Instructor] One thing that a basic robo-advisor needs to be able to do is not only recommend a portfolio to investors upfront, but also be able to tell them how to adjust their portfolio over time. I'm in the 03_04_Begin Excel file. Now, this is our recommended portfolio for our hypothetical investor. As the investor ages, that portfolio will change. So later on when that investor gets to be say, 50, perhaps they become more risk-averse, as an example, their portfolio should shift based on that. And that's exactly what we see in this particular basic robo-advisor. But not only do investors' needs change as they age, but they're also going to change based on what's happening in the overall market. For instance, maybe we've seen a deterioration in U.S. stocks as an example. So we want to tilt away from U.S. stocks and towards bonds based on that, or rebalance our portfolio to maintain our asset allocation. Well, the basic Excel sheet that we have here can't easily do that because…

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