Why Are Investors Shifting to Automated Investment Solutions?

Investing can be complex. It requires time, effort, a detailed strategy and a whole lot of research (and all that doesn’t even guarantee success!). So, it’s no surprise that many investors, given a chance, would prefer to engage a third party to manage their investment portfolio. Traditionally, this would be a financial advisor. However, thanks to technological advancements in recent years, automated investment solutions are also gaining popularity among investors looking for a hands-off investment that can deliver excellent returns. In this article, we’ll explore what automated investment solutions are, why they’re gaining in popularity and how you can utilise them for your investment portfolio. Let’s get into it!

What is an Automated Investment Solution?

Automated investment solutions leverage artificial intelligence and algorithms to automate investment decisions based on investors’ risk parameters and long-term goals. These solutions can often be applied to various markets, including FX, Stocks, Cryptos, Metals, Indices and Commodities.

Letting technology handle your investments means you can potentially achieve positive market returns regardless of your level of expertise or finances. Automated investment solutions represent a profound shift in the wealth management landscape, as they’re helping to remove the conventional barriers of needing a lot of money to invest or an in-depth understanding of the markets and how they work.

Three Reasons Why They’re Growing in Popularity

  1. They Don’t Require a Deep Knowledge of the Financial Markets

Investors don’t need to worry about having a detailed understanding of market fundamentals or technicals when using automated investment solutions, as they can analyse and execute trading decisions on their behalf. This makes them a perfect solution for investors who feel they’re not entirely clued up on the financial markets.

But they’re also an excellent solution for professional or institutional investors. This is because there’s an opportunity cost to manually trading the markets as you have to spend a lot of time analysing data and making informed decisions. Letting AI handle your decision-making helps you free up time and money.

Whether you’re just starting to invest or have been investing for years, automated investment solutions can help you. You don’t need to understand the market or even choose your investments. The only thing required from your side is to set up your account and answer some questions about your investment timeframe and goals. The platform handles the rest!

  1. Eliminates Emotional Decision-Making 

On average, 80% of manual traders lose money. A significant factor behind this loss percentage is not effectively managing emotional biases. Some of the most common biases that can distort our decision-making include loss aversion and overconfidence. These types of emotional biases often cloud traders’ judgement and decision-making, leading them to deviate from trading strategies and take on more risk based on greed.

AI is not subject to emotional biases, as it just follows pre-programmed algorithms. The system relies on data – the data you input as well as data extracted from the market. It looks at patterns, compares them to your overall goals, risk tolerance, and timeline, and creates the perfect portfolio. This means it can work more efficiently, make more complex decisions, and execute trades faster than any human can.

  1. AI Can Process a Vast Amount of Data

Manual trading involves spending time analysing historical data and statistical trends to try and successfully predict future price movements. Not only is this incredibly time-consuming, but it’s also extremely challenging to master. 

Whereas a powerful AI trading solution, on the other hand, can analyse, handle and process a huge volume of data, more than any human could possibly ever match. This enables it to comprehend the current market direction and accurately anticipate behaviour.

How You Can Use an Automated Investing Solution

If you’re now considering an automated investment solution, then look no further than Aiternativ. We leverage artificial intelligence and a total return approach to ensure reliable returns in the forex markets with a moderate risk profile. It’s a great solution for both retail and institutional investors that are looking to further diversify their portfolios outside traditional investment vehicles like shares and bonds. 

And with no lock-in periods or high initial investment, Aiternativ is one of the most flexible investment choices on the market. Interested in trying out our automated investing solution? Learn how you can invest in three simple steps here