Rise of robo-advisors in mortgage business could have an impact

Boston-based FMR LLC (a.k.a. Fidelity Investments) officially entered the U.S. robo-advisor market on Wednesday with the launch of its Fidelity Go platform.

Investors with a minimum of US$5,000 can open an account with Fidelity Go. To get started, investors answer a minimum of seven questions based on their goals, current financial situation and risk tolerance. Fidelity then suggests an investment strategy based on their answers.

Portfolios held in retirement and taxable accounts consist of Fidelity index funds, although taxable accounts may also include BlackRock iShares exchange-traded funds and tax-advantaged municipal bond funds.

Fees for using the new platform range from 0.35% to 0.4%, which includes both the advisory and underlying fund fees. Boston-based Geode Capital Management manages all Fidelity Go portfolios.

“Fidelity Go makes professionally managed portfolios broadly accessible by helping people move from saving to investing quickly and efficiently, with costs starting at approximately US$20 a year,” says Rich Compson, head of managed accounts with Fidelity, in a statement.

Investors can access Fidelity Go across several devices, ranging from smartphones, to tablets and desktops. Fidelity Go customer service representatives will be available via online chat or telephone to assist clients.

Fidelity’s Toronto-based subsidiary, Fidelity Investments Canada ULC, has confirmed that the robo-advisor platform is currently available only to U.S. clients.

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