They are multiplying!
It seems like 2016 is the year of the robo-advisor in Japan. I am aware of three services operating right now, with more on the way.
Robo-advisors are financial services that use software to replace humans for portfolio management. This should result in more consistent results and lower fees.
I am very excited about the rise of robo-advisors in Japan. I think this development has a huge potential to help a lot of people get started investing.
The benefits of robo-advisors are that they will provide you with a diversified portfolio and rebalance it for you. All you have to do is put money in.
The current disadvantages are that you can't use tax-advantaged accounts like NISA or J401k, and the fees are too high at the moment.
The three services I am looking at are:
This service requires an $88 minimum deposit and charges 0.88% a year.
This service requires a 100,000 yen minimum deposit and charges 1% a year.
This service requires a 1,000,000 yen minimum deposit and charges 1% a year.
Right now I think the annual charges are too high for all of these, but with increased competition they should come down in the future. It seems like they all provide basically the same service.
I have a THEO account that I am quite happy with, and am currently opening an account with 8 Now! for comparison purposes.
I was planning to open a WealthNavi account as well, but a million yen is a bit too much for me just to be able to write about it on this blog ;)
Any other robo-advisor services I should know about? Any good or bad experiences?