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Investing Money with Investify: Advantages of Managing an AI-Based ETF

Digital Asset Management: Investing Money with Investify: These Are the Advantages of Managing an AI-Based ETF

Friday, August 27, 2021 at 12:11 pm

With Investify’s Robo Advisor, you can enjoy all the benefits of managing an AI-based ETF. You set your risk tolerance and investment objective and receive investment recommendations that are constantly improved by algorithms to meet your preferences.

Artificial intelligence is generally used as a collective term for technologies that enable machines to understand, process, decide, act upon, and learn something. With the help of artificial intelligence, data can be evaluated in real time and processed in a useful way. Thus, on the basis of these data, it is possible to determine the possibility of improvement and make recommendations for action.

The areas in which AI is used are diverse and the methods are becoming more and more complex. Artificial intelligence is also increasingly used in digital asset management and aims to simplify and improve financial investments.

Benefits of managing an AI-based ETF

  1. act without emotions
    The financial markets and stock exchanges are often associated with a lot of emotions, because after all, it is not uncommon to share large amounts of money. Asset managers like to be guided by experiences and feelings, which can go well, but it doesn’t have to be. The use of AI in asset management has the advantage that large amounts of data can be systematically examined and decisions can be made on the basis of these assessments. Thus, the score is based on data only and is not subjectively determined.
  2. Better overview
    The amount of data and data sources have increased dramatically in recent years. People will need an indefinite amount of time to search and process the data. With the help of artificial intelligence, huge amounts of data, also known as big data, can be evaluated in real time and presented in a useful way. At Investify, you’ll get access to a range of BlackRock’s core ETF portfolios, which are individually tailored to your risk tolerance and personal preferences.
  3. Optimization through algorithms
    AI can teach machines to systematically examine data and improve processes. As a portfolio manager, Investify always uses certain algorithms to monitor risks at the overall portfolio level, and if investment limits are exceeded, it restores the client’s planned risk structure on the same trading day.
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What is called bot advisors?

Robo-advisors, that is, digital asset managers, are online applications based on artificial intelligence. You manage your assets largely independently. The investment strategy is tailored to the investment objective, risk appetite and time horizon. A digital asset manager – a promise – chooses the right strategy and the right asset classes. With constant monitoring, stocks, bonds, funds, ETFs and Co are automatically bought and sold in order to achieve the highest possible return in the long term and avoid traditional investment mistakes.

Portfolio rebalancing

in a invest The client benefits from daily monitoring of the portfolio structure within the specified investment limits. If these individual portfolio limits are exceeded and the portfolio risk deviates significantly from the client’s pre-determined risk, what is known as a rebalancing is performed. Thus, rebalancing is a risk management tool that restores the original portfolio structure with the specific preferences of the client.

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Excellent portfolio management in collaboration with BlackRock

Clients’ portfolios always consist of the primary investment and objective investments voluntarily chosen by the client. The invest The core investment is an enhanced portfolio consisting of ETF products that identify different indices. Derivation of core ETF portfolios invested globally, Invest is collaborating with BlackRock – the world’s largest independent asset manager. As part of the collaboration, Investive receives guidance and directional assistance from BlackRock for structuring its asset allocation. Choosing the best ETFs is entirely up to the investment. Depending on the client profile, the underlying investment varies with different weighting of asset classes and different weighting of regions and industries and risk factors within individual asset classes.

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