Should I Invest in a Robo-Advisor?

Do you want to jump into the world of investing, but not sure about picking your own stocks and managing your own portfolio? A robo-advisor can do all that for you.

A robo-advisor is a digital platform that uses computer algorithms to build and manage a diversified portfolio based on your risk tolerance, financial goals and other personal factors. It also automatically rebalances your portfolio based on market conditions and your investment goals. While that sounds neat, a robo-advisor can pose some big risks. Before you invest, you need to weigh the pros and cons.

Robo-advisors continue to grow in popularity. According to a study by the international consulting firm Deloitte, assets managed with the support of robo-advisors may grow to more than $16 trillion by 2025 -- about three times that of BlackRock, the globe's largest asset manager. Indeed, robo-advisors may offer several features that would appeal to investors seeking a hands-off, no-hassle approach.

Source Fool.com