Investing for the first time can make your head spin. From the jargon to the time-consuming market research to the nerves you have, it’s natural that you might feel apprehensive. But investing doesn’t need to be scary or overwhelming — and you should feel good about taking control of your financial goals and growth.

That’s why we created a cash-enhanced Robo Portfolio with no advisory fees. It’s a way for you, the beginner investor or merely the hesitant investor, to invest in the market while taking on less risk. Curious to learn more? Read on.

What is a robo portfolio?

A robo portfolio is an investment account that is professionally created, monitored, and — you guessed it — managed on your behalf, typically for a fee. Some, like Ally Invest’s Robo Portfolio, are referred to as a robo-advisor, which combines human expertise with technology to automate the investment process. This approach takes the tough, confusing, or stressful decision-making off your plate and allows expert advisors to consider your goals, risk tolerance, and time frame in order to guide your investment strategy.

What is a robo-advisor?

Don’t worry — it’s not a futuristic humanoid doling out financial advice or controlling which investments make up your portfolio. A robo-advisor simply refers to the practice of taking a more automated approach to your robo portfolio. Robos use technology to make the more time-consuming aspects of the investment process more efficient. They diversify a basket of ETF investments based upon your risk tolerance and time horizon and automatically rebalance your portfolio based upon the ups and downs of the market. Add to that the human experts that work on our Robo Portfolios and you get the best of both worlds guiding your portfolio and keeping your wealth-building on track — but without the high fees.

Are there benefits of robo-advisors?

Robos have plenty of benefits. You’ll save on advisory fees due to automation. (In fact, our new cash-enhanced Robo Portfolio has no advisory fees!) Plus, robos typically have a much lower barrier-to-entry compared to human advisors — we’re talking minimum investments of just $100.

Robos can also help you avoid emotional investing behaviors, like making gut decisions based on news headlines, recommendations from friends, or dips (or upturns) in the market. While those emotionally-triggered choices often feel right in the moment, they can cause you to lose money in the long run. Because robos automatically rebalance your portfolio during market volatility, you can take on a “set it and forget it” mentality, knowing your financial assets are under professional care.

Related: Expert Take — Lule Demmissie on Market Disruptions

What is the cash buffer element?

Our cash-enhanced Robo Portfolio has a permanent 30% cash buffer built in — meaning that 30% of your portfolio remains in cash, instead of invested in stocks, bonds, or other securities.

That buffer has a number of purposes. In your portfolio, your cash earns interest at a rate similar to a savings account, meaning it will continue to grow even if the market fluctuating.

It also helps you gain confidence and peace-of-mind in the investment process because it prevents losses from being as harsh. While returns in our cash-enhanced Robo Portfolio may not be as high during a market upswing as they could be in a more aggressive, fee-based portfolio, the decline won’t be as steep during a market downturn.

A cash-enhanced Robo Portfolio can take a lot of the heavy-lifting (and guesswork) out of investing. With a cash buffer that protects you against market volatility, no advisory fees, and portfolio management that is tailored to your goals, it’s an option that can save you time, money, and stress.

Open a cash-enhanced Robo Portfolio today.