Performance and Reliability of Robo-Advisors
The performance of robo-advisors, or digital asset managers, varied greatly over the past year and showed significant volatility. This reflects the challenges and opportunities in an increasingly competitive market. For private investors and savers, this development is particularly relevant as it provides insights into which providers may reliably deliver returns.
- The performance of various strategies at digital asset managers was influenced by a negative market environment last year. Some investment strategies recorded losses between approximately -1% to -2.7% within a year. Despite these short-term setbacks, long-term assessments (over six years) show an overall positive trend, recommending a longer investment horizon.
- The fluctuations in performance also reflect the increasing competition among robo-advisors. Providers are attempting to attract customers through innovative products such as sustainable investment strategies or favorable conditions.
Growing Importance for Private Investors
- The competition is particularly rising in light of political developments: The federal government plans to reform private pension provisions by introducing a pension savings account, which could give millions of people access to the capital market for the first time. Large brokers like Trade Republic are already benefiting significantly from the growing interest in digital investments and could further expand their market share.
- For investors, this means more options among digital asset managers with different risk-return profiles and lower fee structures compared to traditional banks or fund providers.
Recommendations for Private Investors
- Those investing with robo-advisors should pay attention to a longer investment horizon and not be disheartened by short-term fluctuations.
- It is also advisable to compare various providers in terms of costs, offered investment strategies (e.g., sustainability), user-friendliness, and historical performance.
In summary, despite the fact that the returns of individual robo-advisors varied widely last year and were sometimes negative, they offer attractive long-term opportunities for private investors – especially in light of increasing competitive pressure and political initiatives to promote digital pension products. However, careful comparison is essential to identify trustworthy digital asset managers.