Which service is described as an app or website that automatically manages your investments using algorithms?

• A. Robo-Advisor
• B. Micro-Investing
• C. Market Index
• D. Discount Broker

Answer: (A)

Robo-advisors are apps or websites that automatically manage your investments using algorithms. They start by gauging your goals and risk tolerance, then the software builds a diversified portfolio—often using low-cost index funds or ETFs—and automatically rebalances it over time to stay aligned with your target allocation. Many also offer tax-efficient features to optimize after-tax returns. This automated, hands-off approach is what sets them apart from other options. Micro-investing focuses on investing small amounts, but not necessarily automatic portfolio management; a market index is just a benchmark, and a discount broker provides a low-cost trading platform without automatic management.