Online automated investing is increasingly spreading in Germany, according to a new study by Deutsche Bank.
It found that robo-advisors, which usually invest assets broadly through index funds, managed around 3.8 billion euros in client funds last year. That is a more than tenfold increase in volume since 2016, the study released on Tuesday in Frankfurt says.
Market observers had recently estimated the client funds managed in Germany at more than 2 billion euros.
Savers who use robo-advisors first indicate which investment periods and risk appetite they have. The money is then invested worldwide through funds and various asset classes such as stocks, bonds or real estate.
Some providers automatically adjust the portfolio if risks on the stock market increase or savings targets could be breached. The firms usually charge fees of under 1 per cent.
With 3.8 billion euros in client funds, the approximately 25 providers in Germany represent 27 per cent of the market in Europe.
The assets are managed by few providers, however. Scalable Capital in Munich is considered to be the market leader, managing more than 1 billion euros alone.
Other big names include cominvest, offered by the Commerzbank subsidiary Comdirect; Quirion, provided by the Quirin private bank; and Liqid, which works with the company managing the assets of the Quandt billionaire family.
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