Robo-Advice has become a buzzword in the financial and technology industries. Ro

Robo-Advice has become a buzzword in the financial and technology
industries. Robo-advisors are digital wealth management platforms that offer automated
financial planning and investment solutions, as well as a rebalancing method
for efficiently maintaining asset allocations.
Robo-Advisory has seen a huge increase in market volume. The
Robo-Advisors segment’s asset under management (AUM) is estimated to reach
around $1.4 trillion in 2021, with a compound annual growth rate (CAGR
2021-2025) of 18.78 percent, resulting in a projected total amount of
approximately $2.8 trillion in 2025. In 2021, the AUM in the United States
alone will have surpassed $1 trillion (source: Statista).
In this study, we examine the performance of Traditional Investment
Advice and Robo-Advice solutions in different market cycles, such as the Bull
and Bear market cycles. We would like to analyze in details that how this Rob-Advisors
solution performed in terms of risk-return perspective in different market
conditions (bull, bear market cycle) as compared to Traditional Investment Advice and try to find out the
reason behind their out-performance or under-performance against each other.
What strategy made them competitive or superior to each other. If we don’t find
the clear-cut winner in this case then we need to support that with relevant
data as well.
Our thesis work should be backed with data. We will do our analysis based on past 10 – 15 years data which will cover atleast one bull market cycle and one bear market cycle. We will mainly work with the
data on US market, and also we need to find out the similar sort of analysis on German financial market.
Thesis Flow
1. Introduction
·
Problem description with a
catching intro
·
Research gap
·
Specification of thesis
subject
·
Maybe: benefit for employer
or other personal motivation
·
Short outlook on content
2. Theoretical Background
·
Definitions
·
Relevant information from
literature
·
Overview of existing
research on the subject
3. Method and data
·
Description of scientific
or statistical background
·
Research design and
justification
·
Data gathering method
·
Data analysis
4. Results
·
Description of results
·
Conclusions and validation
of conclusions
5. Discussion
·
Criticism and limits of
chosen approach
·
Maybe: suggestions for
testing theories / conclusions presented
6. Conclusion
·
Short summary
·
Recommendations
·
Suggestions for future
research
please find attached file for more information regarding thesis structure.