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Determinants of asset allocation decisions of robo-advisors in the Asia-Pacific region

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  • Thong Yan Lai
  • Yee Peng Chow

Abstract

This paper investigates the determinants of asset allocation decisions of robo-advisors in the Asia-Pacific region based on a sample of 30 robo-advisors in seven Asia-Pacific economies for the period 2022 to 2024. The results reveal that investors' risk profiles have a significant positive influence on the percentage of equity in the recommended portfolio. It is further observed that aggressive investors are allocated with more equities than investors with conservative and moderate risk profiles. In terms of fund characteristics, the number of portfolios offered has a significant positive impact on the percentage of equity in the recommended portfolio, especially for aggressive investors. Contrarily, expertise in fixed income class exerts a significant negative effect on the percentage of equity in the recommended portfolio, particularly for conservative investors. Lastly, macroeconomic factors, in particular inflation rate, negatively influence the percentage of equity in the recommended portfolio of conservative investors.

Suggested Citation

  • Thong Yan Lai & Yee Peng Chow, 2025. "Determinants of asset allocation decisions of robo-advisors in the Asia-Pacific region," International Journal of Business and Systems Research, Inderscience Enterprises Ltd, vol. 19(1), pages 23-53.
    • Handle: RePEc:ids:ijbsre:v:19:y:2025:i:1:p:23-53
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