Explanation

Let's analyze each option:

Option A: Robo-advisers charge higher fees than traditional investment advisers

• This is incorrect. Robo-advisers typically charge lower fees than traditional investment advisers due to their automated, technology-driven approach that reduces operational costs.

Option B: Robo-advisers mainly target investors with a high level of investable assets

• This is incorrect. Robo-advisers primarily target mass-market investors with lower investable assets who may not meet the minimum investment requirements of traditional advisers. They democratize access to investment advice.

Option C: Assets managed by robo-advisers are growing in part due to new entrants such as insurance companies

• This is correct. The robo-advisory industry has seen significant growth with new entrants from various sectors including:
  • Traditional financial institutions (banks, brokerages)
  • Insurance companies expanding into wealth management
  • Fintech startups
  • Asset management firms

Key Points:

1. Robo-advisers use algorithms and technology to provide automated investment advice and portfolio management.
2. They typically charge lower fees (often 0.25%-0.50% AUM) compared to traditional advisers (1-2% AUM).
3. They target a broader demographic, including younger investors and those with smaller portfolios.
4. Industry growth is driven by technological adoption, changing consumer preferences, and expansion into new market segments.

Therefore, option C is the most accurate statement about robo-advisers.