At MD Financial Management, we believe in providing physicians and their families with a choice of quality investment services with competitive fees, allowing you to invest towards your goals, your way.
MD ExO® Direct is a digital investing service that’s popularly known as a robo advisor. Robo advisors are a relatively recent development, and with that newness comes some myths. Here are the five biggest ones and the truth about them:
Myth 1: I’m getting advice from a robot
The “robo” part of this advisory service is the use of technology to simplify the investment process. For example, the automated, step-by-step, online investment questionnaire and technology is used to recommend a portfolio based on your investment goals, timeline and risk tolerance.
From there, a very human advisory team is available to support you, answer questions and go over your portfolio allocation, before or after you make an investment. You can talk by phone or have an online chat.
Myth 2: I have to choose between a robo advisor and a real-life person
Feel free to have both. While a core of investors may opt to keep their primary account with a traditional advisor, others may direct some savings to a robo advisor to try it out.
Financial services is now a hybrid world that pairs smart people with powerful technology. It means you can choose from personalized services based on your needs, your financial goals and how involved you want to be in the decision-making process..
Myth 3: It’s only for newbies with small accounts
It’s no surprise new investors or millennials who grew up connecting with people online find it natural to work with a robo advisor. But this type of service serves people of all ages looking for a comfortable middle ground between do-it-yourself investing and a full-service approach.
Integrating technology keeps costs down to lower fees, which can lead to savings compounded over time.
Myth 4: There is less security
Not true. Digital investing is subject to the same strict regulations and oversight as every other part of the Canadian financial services industry. Portfolio managers have a legal responsibility to put your best interests first.
Maintaining your confidentiality and protecting your personal information are fundamental to the way MD Financial Management (MD) does business with you, and it is no different with MD ExO Direct.
Myth 5: This is a passing fad
Much like online shopping and car sharing, robo advisors are here to stay.
According to Statista, assets under management for Canadian robo advisory firms are predicted to rise to US$25.8 billion by 2025, for a 20.3% compound annual growth rate from 2021. Digital wealth management uses software to help build and manage customized portfolios, teamed up with trained professionals who can provide advice when a human touch is needed.
Embrace a robo… if it’s right for you
At MD, we know that everyone’s circumstances are different. We provide a range of investment services, while maintaining the standard of excellence you’ve come to expect.
Ultimately, the service you go with should be dictated by your level of interest, how involved you want to be in the investment process and your personal situation.
MD ExO Direct offers simplified investing that is entirely automated and online, while still providing access to an MD ExO Direct advisory team when you need it.
If you prefer to work face-to-face with an MD Advisor* or to trade online on your own — we’ve got you covered too.
* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec).
The above information should not be construed as offering specific financial, investment, foreign or domestic taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals.
