# Robo-Advisor

*Saving & Investing — Finicade finance glossary*

A robo-advisor is software that builds and maintains a diversified portfolio for you, handling allocation, rebalancing and often tax-loss harvesting.

A robo-advisor is software that builds and maintains a diversified portfolio for you from a risk questionnaire, handling allocation, rebalancing and often tax-loss harvesting automatically. Fees run around 0.25% versus roughly 1% for a traditional advisor, on top of the underlying fund costs. What you're buying is discipline and automation, not stock selection — the portfolios are typically plain index funds, which you could hold directly for less if you'd actually rebalance.

**Also known as:** robo advisor, automated investing, digital wealth manager

**Related terms:** [Asset Allocation](https://finicade.com/glossary/asset-allocation), [Rebalancing](https://finicade.com/glossary/rebalancing), [Expense Ratio](https://finicade.com/glossary/expense-ratio), [Target-Date Fund](https://finicade.com/glossary/target-date-fund), [Financial Advisor](https://finicade.com/glossary/financial-advisor)

Source: https://finicade.com/glossary/robo-advisor