Roboråd

Ro-boråd is the Swedish term for automated investment advice delivered by robo-advisors. It refers to digital platforms that use algorithms to build and manage investment portfolios tailored to a user’s stated goals, risk tolerance and time horizon. Portfolios typically rely on low-cost index funds or exchange-traded funds and are designed to be diversified and easy to use. Ongoing management, including periodic rebalancing, is often automated.

In practice, a user completes an online questionnaire about risk preference, investment goals, and liquidity needs. Based on the responses, the platform proposes an asset allocation and, in many cases, automatically implements and adjusts the portfolio over time. Fees for robo-advisory services are usually lower than those for traditional financial advice, reflecting the automated approach. Some services provide only guidance and decision-support tools, while others offer a fully automated, hands-off management experience.

Regulation and safety: Robo-advisory services in Sweden and the European Union are subject to financial regulation, including MiFID II, and providers must operate within authorized frameworks. They are generally required to disclose risks, costs and the limits of automated advice, and to conduct suitability assessments for retail clients. In some cases, platforms function as execution-only tools without personalised advice; in others, they deliver personalised recommendations with associated fiduciary duties.

Adoption and criticism: Robo-råd expands access to investment management for small savers and those seeking low-cost solutions. Critics note potential limitations in addressing complex financial situations, the dependence on algorithmic models, and concerns about transparency and data privacy.

See also: robo-advisor, financial technology, investment management.