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

Thong Yan Lai and Yee Peng Chow

International Journal of Business and Systems Research, 2025, vol. 19, issue 1, 23-53

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.

Keywords: Asia-Pacific; asset allocation; financial technology; modern portfolio theory; MPT; portfolio investments; robo-advisors. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=143549 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbsre:v:19:y:2025:i:1:p:23-53

Access Statistics for this article

More articles in International Journal of Business and Systems Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().