Which service uses automated investment management via algorithms?

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

Answer: (C)

Automated investment management via algorithms is provided by robo-advisors. A robo-advisor uses computer algorithms to build and manage a diversified portfolio based on your goals, risk tolerance, and time horizon. It handles asset allocation, automated rebalancing to keep your investments aligned with the target mix, and often tax-efficient strategies like tax-loss harvesting. Because everything is run by software with minimal human intervention, you get ongoing portfolio oversight and adjustments without having to select or trade individual assets yourself.

This differs from passive investing, which is about simply tracking a market index rather than automating portfolio management. A market index is just a benchmark, not a service. And a discount broker is a trading platform that offers low commissions for buying and selling securities but does not automatically manage your investments for you.