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"Starry Night 20:00" is the wealth of evidence on file with the launch of a large circle coffee face financial columns, for current events, the current economic situation and investment opportunities in the industry, invite big top coffee, providing asset allocation guidance for everyone.
Ninth, we invited a certificate of wealth through investment research group Meng Xuan, to share knowledge in the field of intelligent investment adviser.
Speech Record
1
Smart investment adviser Profile
1, intelligent investment Guding Yi
Mention intelligent investment adviser, we first need to define what the definition of a smart investment adviser. Smart investment adviser, investment adviser, also known as a robot (robo-advisor), its use of cloud computing, big data and artificial intelligence technology to other financial investment theory portfolio theory applied to the model, then the investor risk appetite, financial position and financial planning model input variables such as user-generated asset allocation recommendations automation, intelligent, personalized, and to achieve a combination of tracking and automatic adjustment.
Smart investment adviser as a substitute for artificial feeding care, to achieve the main by acquiring index user's risk appetite levels and roughly the expected rate of return, the use of intelligent algorithms and automated management of the combined investment to help users, passive investment strategy of combining custom of investment consulting services. Because the service process to achieve all or most of the automation management, it is called a smart investment adviser.
2, the development of intelligent investment adviser history
Throughout the history of the development of intelligent investment adviser can be roughly divided into three stages: stage traditional investment consulting, investment consulting online stage, intelligent investment consulting stage.
Traditional investment adviser stages / investment adviser 1.0 (20 century ago): mainly for high net worth clients one on one service manual for a full range of wealth management assets to earn consultancy fees, commissions and revenue sharing. The online investment adviser stages / investment adviser 2.0 (20 century --2015 years): artificial service-oriented, investment adviser to provide portfolio management and trading limited investment advice to middle-net-worth clients; Financial Times Internet, customers can according to their needs online platform for finance and investment.
We are talking about today is the third stage of intelligent investment adviser, investment adviser intelligent stage / investment adviser 3.0 (2015- present): limited or no manual service, using a computer program system according to its own financial needs of customers, through product build data models and algorithms, to provide customers with financial advice. Low-cost, non-emotional, scale and so on.
3, intelligent investment adviser target customers
Intelligent investment adviser's main target customers for production and long tail customers. Middle-income people and the huge, there is a strong fund management and investment needs. US annual income of $ 3 to $ 200,000 belonging to the middle class, accounting for about 80% of the population.
In China, by 2020, the middle class will reach 700 million people, nearly half of the total population. Large middle class population, in addition to the purchase of common financial products, there is also demand for asset allocation.
4, the difference between a smart investment adviser and investment adviser of the traditional
Traditional investment adviser, investment threshold is high, investment adviser expensive, the main customers for high net worth crowd. Traditional investment consulting one on one communication with high net worth clients by providing them increase the value, heritage, charity, etc., wealth management consulting services. The middle class and below the long tail crowd difficult to enjoy professional, customized investment advisory services.
Smart investment adviser reduced the threshold for investment services. Risk appetite discrimination based information service provided by the Internet based on customer feedback questionnaire and other forms, and then the computer back using the algorithm automatically calculated to meet the conditions of the investment portfolio to achieve asset allocation on a global scale, in essence, in terms of saving professional investment adviser labor costs, and more efficient, convenient and inexpensive to provide finance and investment for the C-terminal low-net-worth clients, asset allocation services and from investment threshold is significantly lower than traditional investment adviser.
5, intelligent investment adviser, investment targets and investment process
Smart investment adviser to the user is presented a portfolio investment targets for the common market investments. Behind the fact that stocks, bonds, funds, ETF and real estate, alternative investments worldwide investment targets. US investment adviser typical intelligent platform for the majority of ETF investment targets, the current domestic ETF products too little, too smart investment adviser at an early embryonic stage. The current stage of the country is only based on the risk level and investment horizon user of their choice, given the portfolio of a plurality of raised funds constituted, and FOF similar.
Smart investment adviser, investment process based on conventional investment theory and methods and strategies, in essence, the Internet application scenarios of traditional investment theory. Most smart investment adviser platform will help questionnaires and other means to determine the user's risk tolerance level, information requirements and benefits such as investment horizon, investment and intellectual part of the platform is to allow users to directly check the level of risk and has investment horizon.
Whether in the form of a questionnaire or check directly brute risk tolerance levels and investment horizon, are the equivalent of investable assets and the expected return of risk analysis to customers, which is equivalent to building a portfolio platform set constraints. According to the customer's risk level and investment horizon, building a portfolio by means of computer methods of risk diversification and other traditional investment theory and quantitative investment strategies, and real-time tracking macro events after the administration process, market conditions and investor preferences change, automatic positions after the auto air control and authorization.
6, the development of intelligent investment adviser's profile
Well-known consulting firm AT Kearney predicts, 2016-- United States between 2020 smart investment consulting market CAGR of 68%; in 2020 the smart investment adviser asset management market total of $ 2.2 trillion, accounting for the time scale of global wealth management ratio of more than 2.2% market penetration will surge from 0.5 to 5.6 percent.
In the context of economic L-type operation, Chinese wealth management market continues to maintain high growth. By 2016, the overall size of investable assets held by individuals in China reached 165 trillion yuan, 2014--2016 average annual compound growth rate of 21%, following the 2008--2010 years after the station on the 20% mark again.
7, profit model
Consulting fees are the main source of income intelligent investment adviser. Smart investment adviser and profit model similar to the traditional investment banking institutions, earnings were charged intermediate costs. The difference is that a small number of intelligent investment adviser fees middle and low expense ratio. The main reason is a smart investment adviser platform is to rely on the advantages of the Internet, you can save on labor costs and the cost of branch offices. In addition, intelligent investment adviser has a scale, can attract large number of customers through lower rates, in order to win.
In the United States, the traditional investment consulting service charges range and very opaque, often receive consulting fees, transaction fees, prepaid expenses to cash, portfolio adjustment costs, hidden costs, costs nearly ten scattered like expenses, total rates of up to 1 %the above.
The intelligent investment adviser then take a single rate model is completely transparent, that only charges 0.15% -0.35% of management consulting fees, other costs no longer involved. But the deal generated in the process of transaction fees, holding fees intermediate costs borne by investors, due to the current smart investment adviser, investment targets to ETF products with very low rates characteristics of the total expense ratio of 0.03% in common -0.55% level.
8, overseas Overview
US smart investment consulting start-up companies in advance, traditional financial institutions come from behind. Since 2008, Betterment, Wealthfront ranking group of intelligent investment consulting companies have been established in the smart investment consulting market Plow has experienced slow but steady growth. Betterment obtained in March 2016 to $ 100 million E round of financing, $ 4.0 billion in assets under management, valuation of $ 700 million in the past 15 months, assets grew by nearly $ 3 billion.
Another Wealthfront behalf of the company in 2014 received $ 64 million in Series D financing, currently about $ 3 billion in assets under management. With the development of technology of artificial intelligence, big data analysis, intelligent investment adviser suddenly show explosive growth in 2015, traditional financial institutions aware of their threat to traditional investment consulting market, also have set up a smart investment consulting department, or by the acquisition of start-up companies involved in smart investment consulting field.
May 2015, after Charles Schwab online intelligence service portfolio, less than three months to attract investment of $ 2.4 billion, and more than 33,000 customers, the service assets under management currently exceed $ 4.0 billion; in August 2015, the world's largest asset management firm Blackrock acquired robot investment consulting startup FutureAdvisor, March the following year, Goldman Sachs acquired retirement accounts online financial platform HonestDollar.
9, the domestic profile
Compared to the United States, smart investment adviser in China started relatively late, it is still at an early stage start-up companies, brokerage agencies, banking institutions, BAT and other Internet giants one after another into the office, smart investment consulting market boom gradually expanded.
Since 2014, China's first smart investment adviser - a shoo on the line since the rapid development of intelligent investment adviser, Mi Choi, money King private wealth management, network and other platforms have been indifferent on the line, unique. In addition, Internet Banking platform and other Internet giants have gradually BAT cooperate with the new intelligent financial management function, with its own Internet supermarket of financial products, stepping up the layout in the smart investment consulting field.
According to incomplete statistics, China's current claims to have intelligent functions or investment adviser is developing a smart investment adviser Internet Banking platform over 20, review the domestic smart investment consulting market by 0-1, to complete the initial layout, in just two years time. ID Card Fortune singularity wisdom to vote early this year just on the line, on-line a month, the user has exceeded 1 million.
2
The main features of intelligent investment adviser
Traditional investment adviser, ask one of the investment banking services are high cost, low service targets, lack of knowledge acquired, less experienced, moral hazard and other shortcomings. Smart investment adviser artificial intelligence and big data technologies into the field of investment advisers that can handle vast amounts of information, rapid response to the current situation. It has low barriers to entry, low cost, wide investment, easy operation, high transparency and customization six advantages and characteristics.
1, the threshold is low
It features one: a low threshold so that middle and long tail customers full coverage to achieve universal financial management.
The traditional threshold of professional investment advisers in more than one million yuan, while private bank financing the starting point of more than 600 million yuan, and even some private banks will set the threshold to 1,000 yuan, mainly for high net worth clients. Most of the production and the long-tailed crowd difficult to enjoy professional, customized investment advisory services, and such a large population base not only in the financial assets have always been a hedge against inflation, strong demand for value-added.
Smart investment adviser platform for customers minimum investment requirements are low, minimum requirements common in 1 million -10 million, evidence of wealth through the singularity Chilean investment amount is also set to vote since 5,000, this set all levels of investors opened the door to private wealth management, financial management to achieve a true sense of the people, so that the C-terminal exponentially expand the number of customers.
2, low cost
Features 2: Compared artificial investment adviser, charge a lower fee.
Traditional investment advisers held by professionals, mainly for high net worth population, due to high labor costs, management fees of traditional investment advisers generally higher than 1%, and no significant decline in the marginal cost. But based on a computer algorithm-assisted intelligent investment consulting, management fees generally between 0.25-0.5%, the marginal cost decreases with the increase in customers, the marginal effect is obvious.
3, wide investment
Three characteristics: a broad range of investment targets, may seek optimal asset allocation on a global scale.
Smart investment adviser platform often through cooperation with third-party ETF fund companies or foreign financial institutions, to provide users with a portfolio on a global scale, if it comes to tax issues can also automatically select the best option. For example Wealthfront involving as many as 11 asset classes, including stocks, foreign stocks, bonds, natural resources, real estate, etc., the carrier portfolio of index funds ETF; we permit through the wealth of Singularity Chi cast also covers the Global Thirteenth Class assets, including cash domestic class, the domestic market, medium plate, small cap, domestic credit debt, domestic debt interest rates, foreign bonds, stocks, Hong Kong stocks, emerging markets, even including gold and crude oil markets.
4, easy to operate
Features four: simplifying service processes and enhance the user experience.
Smart investment consulting services to the process is simple. The whole process can be implemented on the Internet, standard and relatively fixed, greatly simplifying the process of user operations, usually just a few steps can be completed investment, eliminating the process of analyzing and selecting investment targets.
Smart investment adviser platform is generally in the form of a web page or APP, investors only need to be answered on the platform corresponding investment survey, investment adviser intelligent systems will be able to assess the level of risk appetite of investors to determine the financial plan, automatically generate the appropriate investment allocation portfolio. The whole process down the time it takes just a few minutes, to achieve efficient, precise matching user asset management objectives. Smart investment adviser is like a butler, 7 * 24 hours a response to customer demand, uninterrupted intelligent management of customer proprietary investment accounts.
5, high transparency
Five characteristics: portfolio, investment information, and cost information is completely transparent, the investment process is done automatically, objective and fair.
Traditional investment advisory services to disclose obscure, there is a problem of financial products suppliers and customers conflicting interests, and smart investment adviser, investment philosophy, the choice of financial products, such as disclosure of the full charge, and customers anywhere, anytime to view investment information.
Smart asset allocation investment adviser given mostly based on classical theory of asset allocation, with strong professionalism and objectivity. Smart investment adviser recommended strict implementation of asset allocation program or model given adopt automation strategy to provide customers with services portfolio, not to mislead customers operating performance and achieve higher commission income, compared to the traditional investment adviser, the smart investment Gu reduce moral hazard, more objective and fair.
6, customization
Feature 6: provide rich customization scenario is based on diverse financial goals for its customization optimal portfolio for the client's risk appetite and investment horizon.
For the customer's risk appetite and investment horizon optimal portfolio for customization. After a smart investment adviser in user unsolicited or appetite for risk assessment and get the investment period for its customization optimal portfolio, and a detailed plan clearly presented. To singularity Chi cast as an example: If the evaluation is aggressive, it will give you configure global thirteen categories of assets, the user can see each class each containing a variety of public fund and the corresponding matching funds.
3
Drivers of smart investment adviser
Smart investment adviser in financial and technological innovation, changes in the securities industry, driven largely by changes in social structure and huge market space, will open next blue ocean trillion wealth management market.
1, a driving factor: financial technology innovation.
Big data and artificial intelligence technology core technology to promote smart financial investment adviser on the stage, and continuous product and service innovation.
Massive data era, + large multi-dimensional data of high frequency smart investment adviser has laid the foundation. With the Internet, the popularity of mobile terminals, and the rise of things, the world ushered in the era of huge amounts of data, the data will show the size of geometric growth. At the same time, more and more rich data source, data acquisition mode will be more diverse, data processing costs will continue to decrease. Booming big data will reshape the area of investment pattern. In addition to the data size, the data also includes the development of large dimensions, the frequency of two ways:
1) increasing data dimensions: the type of user-generated data, hierarchical, more and more rich scenes, such as transaction data, social data, behavioral data, credit data, and other data after another;
2) data of the frequency of rapid promotion: the recorded data and Frequency continued to improve, transformed by the low frequency data to the high-frequency data, for example, the Internet platform traffic, while browsing the effective length, real-time monitoring data user transactions and other periodic financial opposed to the traditional data reported higher frequency, more accurately reflect the user's situation and forward-looking.
"Research - deal" is a key step in the investment adviser, artificial intelligence technology (including indexing technology, knowledge maps, image recognition, machine learning, intelligent decision-making, etc.) to build a smart investment adviser, has penetrated in - all aspects of "research deal". Smart investment adviser of complexity that many complex factors that affect the market, and therefore developed AI technology will need to combine financial theory at every step of the link, we now believe that smart investment adviser is still early days. But as the search data analysis, report generation, quantitative trading every step to get "meticulous" intelligent, smart investment adviser outstanding products will be just around the corner.
2, two driving factors: changes in the securities industry.
Brokerage commission rates continued to decline, a person a policy of full liberalization, as well as change the competitive landscape of the industry, opportunities for the development of intelligent investment adviser.
Brokerage commission rates continued to decline, Forced brokerage explore new profit point. In recent years, Internet Securities flourish, Internet accounts, trading, asset management and other services continue to make breakthroughs. Fierce competition led to the Securities Brokerage commission rates continued downward in recent years, in 2016 a quarter of the overall industry commission rate fell to 0.042 percent, a record low. Commission rates continued to decline far-reaching impact on performance, looking for new profit growth point is imminent. Smart investment adviser, represented the effective value-added services to enhance the customer experience, to meet individual needs, while exploiting the brokerage investment research, product design and other professional advantage, contributing to brokerage upgrade and open up new market space.
A person a policy of full liberalization to stimulate diverse needs of customers. April 2015, the China Securities issued a notice board, clear the A-share market will be fully liberalized "one person, a" limitation that natural persons and institutional investors can according to their actual need to open multiple A-share accounts and closed-end fund account, the upper limit is 20, indicating that investors can open an account at the same time the number of brokers.
Under the new policy environment, the number of investors, the rapid growth of the number of stock accounts and securities accounts of customers to replace barriers are eliminated, the potential demand is effectively stimulate price competition in brokerage business to explode, industry commission rates continued to decline, down forcing the Securities Brokerage accelerate business transformation, improve service quality. Lower commission rates and has various characteristics of brokerage services will become more significant competitive advantage, and the difference of the investment adviser, product development is the focus of many brokerage firms, according to incomplete statistics, there are more than 30 brokerages launched based on intelligent investment adviser the APP products, not only expanded the coverage of investment consulting business, but also to provide customers with personalized service.
Rise of the Internet to promote the securities industry, the competitive landscape changes, smart investment consulting business is contested. The rise of Internet Securities, the securities industry is to break the existing competitive landscape, the traditional large brokerage firms, small and medium sized brokerage and securities industry market segmentation is committed to Internet companies, have a strong desire to obtain first-mover advantage in the field of intelligent investment adviser.
3, driving three factors: changes in social structure.
Millennials Rising, the increase in household wealth, financial management concepts and objectives of diversification of maturity, tremendous demand for the development of intelligent investment adviser.
Millennials Rising, more receptive to Internet-based smart investment adviser. Chinese born in the eighties and nineties the younger generation (80, 90 after as Millennials) are becoming the backbone of society. Habits and ways of thinking of their financial investment by the impact of the Internet, the Internet is more receptive to new things and new products, in investment, lending, banking and other financial activities, more dependent on science and technology-driven tools and methods, most of them positive in economic capacity increase or stabilization phase, the next period of time they will be a smart investment adviser demand has skyrocketed.
Steady growth in household wealth, a growing middle class, lack of investment channels lead to huge financial needs. Benefit from the rapid development of the national economy, China's sustained and rapid household financial assets accumulated in 2016, the overall size of China investable assets held by individuals reached 165 trillion yuan. In addition, a considerable number of middle-income groups, China's middle class along with the rapid expansion of private wealth and rapidly expanding, after the United States and Japan, is expected to number 2030, the middle class will account for 70% of the population. However, China is still lack of wealth management investment channels, most of the investment assets concentrated in the banking, trust funds and other institutions issued financial products. The accumulation of wealth and the number of middle-class residents of the expansion will give rise to a large number of financial needs, but also on the type and quality asset management services put forward higher requirements, the huge Chinese market overall wealth management prospects.
Residents maturing financial concepts, financial goals tend to diversify and customization. Financial awareness is gradually awakening, the financial needs of the vast room for growth. Due to increased investment income and the proportion of household savings in the revenue structure gradually increase the degree of awareness of the residents of financial investment and financial investment in the enhanced deposit to move constant speed, the new savings accounts for the past three years the proportion of GDP declined steadily, family property forms are also involved in a variety of financial assets from a single bank deposits and real estate into. With the real estate market continues to adjust, financial products are increasingly rich, mature residents financial management concepts, Chinese residents necessity and feasibility of asset allocation and wealth management are improved, inject more vitality into the wealth management industry.
4, drivers of four: a huge market space.
Configuring wealth and investment targets have become more diversified, long-tailed customers achieve inclusive financial services.
Gudingzichan investment gradually shift to investment in financial assets, asset allocation and investment target increasingly diversified. Investment characteristics of our residents is "re-saving, light investment." Unlike the US diversified wealth configuration, the overall asset allocation China is still far too simple, categories of assets as well as cash ratio is too high, however, because since the last few years, low interest rates and the market environment increasingly popular concept of investment banking, wealth configure our residents have gradually showing a trend of diversification. Which plays an increasingly heavy financial assets invested in the status of the residents. With residents to invest in the transfer from the original estate, fixed income investments to financial assets, financial planning, asset allocation and investment consulting needs of the population will grow significantly, and smart investment adviser as a tool to diversify investment risks, can effectively meet residents diversified investment demand and help residents achieve certain investment income, will be favored by the trend.
Wealth management industry to fill the gaps in the market, serving customers achieve long tail inclusive finance. In wealth management, the current mass affluent and relatively limited investment channels more centralized, traditional secondary market investments such as stocks and bonds, generally requires a lot of time and energy for research, need to bear stock market volatility could potentially investment gains and losses; even fund products, still need to spend more energy to tracking and screening, and risk concentration of ownership also did not result in decentralization; real estate investment you need to pre large sums of money, but also to face the corresponding regulatory risk policy fluctuations in the market value of the rent and the risk of instability; for other financial products, trust products high investment threshold, while the expected rate of return financial products continued to decline, these are hard for users to worry and effort, investment income relatively reasonable financial products and services.
The emergence of smart investment consulting, and venture capitalists will be in accordance with the capacity of groups of different ages and different income status, investment objectives given to configure different asset classes and investment advice. In addition, because the smart investment adviser with a high degree of specialization and strategy execution, asset allocation is given mostly based on classical theory of asset allocation, and a fixed threshold setting, to stop loss, profit margins will automatically operation, can effectively overcome the weaknesses of human nature and without user operation, in order to achieve effective risk diversification done with minimal risk to maximize return on investment. Therefore, we believe that smart investment adviser by the algorithm customized personalized financial solutions to realize the risk / benefit rationalization, Pratt & Whitney to provide investment advisory services for the type of long-tailed customers, will effectively make wealth management the territory in which blank areas to achieve the true meaning of inclusive finance.
4
Constraints of intelligent investment adviser
Has developed a smart investment adviser currently in full swing in the United States, many domestic brokers and Internet companies are also eager to, but smart investment adviser to migrate to domestic development, still constrained by some practical factors: the industry as companies face the passive acceptance of long-term investment not high, the separate supervision is limited, ETF market immaturity lack of investment targets, so that the tax revenue loss can not be classified credits each, risk control system is still not perfect and so on.
1, acceptance is not high
A constraint: passive investors to accept long-term investment models is not high, the pension can not enter the market.
Retail-based investors are more concerned about short-term returns, investment adviser smart long-term investment in passive mode-based acceptance is not high. US investors are mostly institutional investors are more inclined to pursue deep value and long-term investment returns through stable investment style. The investment in the domestic retail market of many, and can invest a relatively low yield levels. Retail accounted for more speculative strong, bet large, they tend to be more market-oriented direction, accustomed to short-term operation, and therefore are more concerned about short-term fluctuations in the market price adjustments brought about by intelligent investment adviser with the emphasis on long-term return on the pace of policy inconsistent. A-share turnover is much higher than the rest of the world stock markets.
Although the fit pensions long-term investment needs, but there is no domestic market conditions. US special pension system enables individuals to participate in the payment of 401K and IRA retirement plan account accounting income continued to increase, such accounts need to take care of themselves, but can not withdraw cash, can not be transferred, are long-term investment, a smart investment adviser good fit investment demand for such accounts. The Chinese form of social security pension places full care by the government, there is no such rigid requirements.
US smart investment consulting companies subject to SEC regulation, once an investment adviser license, can provide investment advice services, can also directly manage clients' assets. In China, investment advisory and asset management businesses belong to two different laws and regulations, which makes it the only investment adviser, qualified companies can not on behalf of our customer transactions.
US smart investment consulting business is the platform of a large number of individual pension accounts investment by customers, the customer once it is connected to a personal account investment adviser platform, after the managed funds, investment adviser platform can be easily replaced by the customer to operate, and also cross-platform operation very smooth. While domestic individual clients' funds scattered, usually hold multiple accounts in the domestic sub-sector regulation, this stage can not achieve imputation manage multiple accounts, operating a single individual investment accounts are free and easy cross-platform almost not feasible .
2, can not spread the risk portfolio.
Constraints II: the limited ETF products, financial products and lack of hedging instruments, can not spread the risk portfolio.
ETF is the current US market in the fastest-growing investment products, the US ETF assets under management have accounted for 73% of the world, ETF wide range of products, covering more than one type of the domestic market, foreign markets, stock, bonds, commodities and so on. A large number of standardized assets as investment adviser to build a smart combination provides nourishment. The Chinese ETFs body mass and number of products are very small, according to Wind statistics, as of the end of May 2016, a total of 131 Chinese market ETF, asset size of only 472.9 billion yuan, and the main stock index ETF, ETF and which type interests currency ETF total of 114, less bond ETF, commodity-based ETF varieties, lack of financial products and hedging instruments, can not spread the risk portfolio. In addition, China's stock market fluctuations, T + 1 system, the absence of short selling restrictions etc innovation and development of capital markets. If the extension investment targets to non-standard field, it is difficult to assess the risk of facing the problem.
3, tax losses can not be harvested.
Constraints III: under tax classification is difficult to tax planning and co-ordination, not for tax loss harvesting.
US personal account a wide range of tax rules vary, for example, tax relief retirement accounts, taxable brokerage account, joint account and so on, thanks to the comprehensive income tax system, tax planning large space. China's current tax collection system to implement tax classification, in accordance with wage and salary income, individual business production and business income, income from taxation and other remuneration 11 projects, each take a different taxable way to apply different tax rates, the lack of different treatment of different transactions related provisions, and thus the lack of foundation based on tax avoidance and capital markets, therefore, domestic products are difficult to intelligent investment adviser by helping investors to reduce tax avoidance or tax costs of harvesting and other means of tax planning.
4, the degree of sound risk control system to keep up with the degree of automation of intelligent investment adviser
Constraints four: the degree of automation and improve risk control system can not keep up the smart investment adviser, investment patterns suited to the trend of the domestic retail market and the policy of the city.
Whether categories of asset allocation or investment strategy smart investment adviser must set strict stop-loss condition. Smart investment adviser properties have automated operation, when the market has undergone emergency situations, the system may not work properly, establish reasonable contingency plans and manual processes is essential.
In addition, intelligent investment adviser relies on models and algorithms, and any built a model is based on long-term exploration of the law, which determines the algorithm set thus more suitable for long-term investment, such as the trend of law. To the Chinese market, for example, due to the impact of policy factors, some more, resulting in short-term model parameters are constantly changing, it is difficult to make long-term forecasts. In addition, the Chinese market is a market dominated by retail investors, there are usually more obvious short-term chase sell and so on, while index funds can not choose, to risk difficult to control in the event of a bear market, it will face a severe test.