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Robo-advisors are dipping their hands into the investment advisory business. Consulting firm A.T. Kearney projected assets under managed by robo-advisors will increase 68% annually to approximately $2.2 trillion in five years. About half of that is anticipated to come from money which was already invested.

Some of today’s notable robo-advisors include Betterment, FutureAdvisor, Personal Capital, and Wealthfront. Charles Schwab Corp. offers Intelligent Portfolios, an automated investment advisory service.

Since its inception in 2008, robo-advisors’ popularity has escalated, primarily due to affordability. Wealthfront requires a minimum investment of $5,000. The service is free if the total investment is less than $10,000. For investments more than $10,000, they charge a 0.25% fee.

Betterment does not require a minimum investment. But, it levies a 0.35% fee if the total investment is below $10,000. For investments between $10,000 and $100,000, there is a 0.25% fee. The firm imposes a 0.15% fee if the investment is north of $100,000.

Schwab Intelligent Portfolios, although they levy no fee, requires a $5,000 investment. They generate money on the service through its proprietary exchange-traded funds and third-party ETFs.

Tax-loss harvesting is another reason for its popularity. Robo-advisors automatically reduces tax obligations on profitable trades, as well as maximizes tax reductions on losing trades. Also, a computer does the work for you, requiring no effort on your part.

Millennials remain risk adverse and cautious of the stock market despite low rates and convenience offered by robo-advisors. This generation has witnessed two of the worst financial crises of all time: the Dotcom Bubble and the 2008 financial crisis. It seems the same pattern, which occurred in the last crisis, is about to surface again. No one can predict the appearance of a bear market. Only time can tell.

Referring to the fact above, the high-tech advisors can rebalance portfolios any time they wish. However, it is impossible for them to generate an upbeat return. Unlike humans, they cannot look at trends and trail headlines. Robo-advisors cannot also analyze the fundamentals and technicals.

Having said all of these, can an investor entrust his capital to a robo-advisor? It depends on your current financial situation. They are relatively new in the market, so betting on them is the same as speculating on a bull market, which is not feasible. But, if you are willing to wait for a long time to secure your financial future, and its advancement, a robo-advisor may be the answer.