A robo-advisor is a digital platform that provides automated and algorithm-driven investment services to individuals. It offers a streamlined and cost-effective approach to managing investments without the need for human intervention. Using advanced algorithms, robo-advisors create and manage diversified investment portfolios based on an individual's financial goals, risk tolerance, and time horizon.

Clients typically start by answering a series of questions about their financial situation and objectives. The robo-advisor then uses this information to recommend a suitable portfolio allocation, often composed of exchange-traded funds (ETFs) or other low-cost index funds. The platform continually monitors the portfolio and automatically rebalances it to maintain the desired asset allocation.

Robo-advisors appeal to investors who are seeking a hands-off approach to investment management, especially those with limited investment knowledge or smaller account sizes. They offer several benefits, including lower fees compared to traditional human financial advisors, accessibility 24/7, and a systematic approach that aims to remove emotional bias from investment decisions.

However, robo-advisors may have limitations, such as a lack of personalized advice for complex financial situations and a potential disconnect in understanding unique investor preferences. While robo-advisors excel in automating routine investment tasks, some investors may still prefer the human touch and customized guidance offered by traditional financial advisors.

In summary, a robo-advisor is a technology-driven platform that automates investment management, providing a convenient and cost-effective solution for individuals seeking to grow their wealth with minimal hands-on involvement.