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Easyfolio is a German robo advisor that handles all the granular details of an investment portfolio, including only requiring a small amount of capital to get started.
Their approach to building portfolios is based on a risk management approach; in their standard offering investors have four portfolios to choose from depending on their desire and ability to handle risk.
Investors will be invested in either the Easyfolio 30, Easyfolio 50, or Easyfolio 70. The difference in each portfolio is the amount of money that is allocated to fixed income, or safer investments.
For example, in the Easyfolio 70, 30% of the portfolio is allocated to fixed income with 70% allocated to equities. This is a simple and effective way to manage portfolios and with Easyfolio’s technology platform, a very cost-effective way to get a solid portfolio built for long-term results.
The other service is called Easyfolio Flex, and this portfolio is automatically adjusted based on what is happening in the market. If market conditions warrant it, the portfolio will invest more into equities. However, if market conditions are bad, then less is placed in equities. This is all done via Easyfolio’s robo advisor algorithms.
Before getting into more detail on Easyfolio’s service, here is a glimpse into what they offer:
The Easyfolio portfolio can all be started with a minimum of €100. This low amount is enough to get started, however to ensure the service is fully effective additional contributions should be made.
Automatic investments can be set up so contributions to the account can be made on a monthly basis. This is the easiest way to invest consistently for retirement.
Easyfolio offers two types of service.
The first is the Easyfolio funds which allocates a percentage of the investment assets to both stocks and fixed income depending on how much risk the investor can manage. The three funds available to investors include:
1. Easyfolio 30: 30% equities, 70% bonds. This portfolio is intended for investors looking for stability and protection of capital. It will not see huge stock market gains, but is the safest portfolio available.
2. Easyfolio 50: 50% equities, 50% bonds. This portfolio is for people who want to get higher stock market returns, but still don’t want to put too much capital at risk. It still looks to conserve capital, while seeking some additional portfolio growth.
3. Easyfolio 70: 70% equities, 30% bonds. This is the most aggressive portfolio for people who want to maximize stock market gains, while still maintaining some exposure to the safer bond market.
The second service and portfolio provided by Easyfolio is the Easyfolio Flex. The Easyfolio Flex portfolio automatically adjusts based on a professional level algorithm that adjusts the portfolio’s exposure to stocks and bonds depending on how the stock market is performing. The equity ratio is fluid, and can range between 0% and 100% depending on market conditions. Here is how the portfolio is invested as of this writing:
Both the Easyfolio 30/50/70 funds and the Easyfolio Flex portfolios use low cost exchange traded funds.
The Easyfolio 30/50/70 have fees of 0.96% of assets under management per year. The fees for the Easyfolio Flex are 1.36% per year. Since both services use exchange traded funds, there are not additional commissions or sales charges applied.
The process to sign up with Easyfolio depends on which service the investor is looking to use. To use the Easyfolio 30/50/70 funds, these funds can simply be purchased via the stock market just as other stocks or exchange traded funds are purchased. In addition, the Easyfolio 30/50/70 funds can be purchased via the investor’s bank.
To invest using the Easyfolio Flex, investors can either sign up directly with Easyfolio and invest via their website, or via other banks. Here are the current options available to people interested in using Easyfolio Flex:
Easyfolio is slightly different from other robo advisors covered on our site. Since they provide both funds as well as a robo advisor service, they give investors options in terms of how they want to invest their money.