What Makes Up a Robo-Advisor?
This is a key chapter, as we will define all the basic concepts and terminology needed to build a Robo-advisor. As you delve into specific implementation details in later chapters, this will be worth bookmarking as a general reference.
In this chapter, we will begin with learning about the elements that make up a Robo-advisor and how they fit together in a workflow. We will understand the impact of Goal-based investing on building a Robo-advisor. Going further, we will go through the basic concepts and purpose of risk profiling, portfolios, and projections, account opening, funding, order management, and execution. Finally, we will go through some basic concepts that are required to operate a Robo-advisor.
We will cover the following main topics in this chapter:
- Understanding the workflow of a standard Robo-advisor
- Introducing financial planning and Goal-based investing
- Defining risk profiling, portfolios, and projections
- Account...
