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Invest.com has the one world’s most expensive trading website names, having been snapped up for a cool $5 million in 2014 - a serious statement of intent then from this newcomer to the robo advisor market. Invest.com launched in 2016, lead by Ophir Gertner, who previously ran iForex. The robo advisor platform is backed by Israeli venture capitalist firm Singulariteam and Chinese social network, Renren. A total of $20 million has been invested in the new robo advisor platform that has been re-launched to take a share of the growing appetite for robo advisor led, DIY portfolio investing.
Key details potential investors should be aware of when considering investing with this robo advisor are:
Assets Under Management: site too new to generate this information reliably.
Minimum deposit amount: $500
Portfolio and asset allocation details: there are a wide range of traditional and alternative investments to create managed, diversified strategy funds to create a portfolio.
Account types: Invest.com offers potential investors a created and managed portfolio, the option to create your own portfolio with its range of different risk appetite based strategy funds and the opportunity to trade the global stock and currency markets.
For investments of $10,000 or under, you pay 1.5% of your investment per year, plus a 15% quarterly performance fee on any profits made during each three-month period. For investments over $10,000, the management fee falls to 0.99% of your total investment amount, per annum, while the quarterly performance fee remains at 15%. There are no other fees related to the investment process,
The minimum deposit of $500 buys you an investment into one of Invest.com existing strategy funds. And, you don’t need to commit to a monthly contribution on top of that. However, if you wish to invest in more than one fund strategy, you will need to invest a minimum of $500 in each fund. That means if you wish to further diversify your investment portfolio, you will need to double or more that minimum $500.
Invest.com's fund strategies and portfolios include a broad range of traditional and alternative assets. So, as well as traditional equity instruments such as stocks and bonds, your investment will also include exposure to alternative assets. That could be:
Invest.com’s financial team create those strategized funds so you don’t have to worry about selecting the right mix of financial instruments to invest in.
The platform also gives potential investors two portfolio investment options.
Potential investors can either fill in a quick and easy-to-use online risk appetite form, that generates a recommended investment portfolio. There are information buttons along the way and on the suggested portfolio. And, if you’re not keen on the portfolio it generates, you can easily re-evaluate using the right-hand menu.
Investors are also able to create their own portfolio using either one or a mixture of the strategies on offer. As stated, the build-your-own portfolio requires a minimum investment of $500 per strategized fund you select.
Invest.com isn’t among the cheapest on the fees scale. However, the site does offer a fully curated and managed investment option that nets investors exposure to the alternative asset class. That’s something that can help safeguard your investment portfolio from bearing the full brunt of any traditional financial market shocks – provided it’s done properly. The fees structure is a 1.5% of your total investment management fee charge on investments of $10,000 or less. Or, where the total investment is above $10,000, your annual management charge falls to 0.99%. The 15% performance fee is only redeemed by Invest.com on any profits made by your portfolio, on a quarterly basis. That charge is the same for all investment, regardless of their total value.
There are no other investment fees associated with Invest.com. So, while they do look high in comparison with some other robo-adviser, it’s all completely transparent. Compare the fees to traditional portfolio management that offer the same service, the fees are low.
The promotion of alternative investments is an interesting strategy to bring to the general public. However, it’s one that has been proven to work over time – provided the alternative assets respond differently to the mainstream investment instruments during times of market stress. While there is room for more detail on alternative assets and exactly what they are, the existing details are easy-to-understand and won’t seem daunting to new investors into the asset class.
Over time, as the robo investor platform gains investors and build a successful investment history, a positive development would be to add more details and expertise on the alternative investment asset class it favours. This would work in its blog section and perhaps in a new expert advice section under its Resources tab, too.
This robo advisor offers the following portfolio investment accounts:
A customised investment portfolio created for you and based on the answers to a few pertinent questions to ascertain your investment risk appetite. They’re designed to be quick and simple to fill in – which they are. They’re also make you think carefully about your risk appetite – are you risk averse or do you consider financial risks a worthwhile strategy for potentially bigger gains?
The build-your-own portfolio, doesn’t require you to answer any risk appetite-related questions. However, the explanations for each strategy fund it offers helps you to focus your thoughts and consider what’s most important to you – playing it safe to bank profits already made, or taking a further risk to make more in an uncertain situation. You can also open a trading account, with a beginner’s option and a pro-trader account.
Invest.com is a pretty straightforward robo-adviser based investment platform to get started on. Simply make your selection between the Invest.com portfolio creator or build-your-own. Then, answer the five or so questions – if relevant – and take a look at the portfolio Invest.com has designed for you. If you like it, click get started, enter your details and make your payment. Or, if you don’t like what you see, re-evaluate with the right-hand menu and encourage the platform to create something you’re happier with.
If you’re going own the Build-Your-Own route, take a look at what’s on offer, select the strategies that suit your needs and then it’s the same process as above; get started, fill in your details and make your deposit to begin investing. There’s also a cool and pretty easy-to-use app to download so you can keep up-to-date on your investment portfolio whenever you want to. You can add to your investment whenever you like and withdraw any profits at your leisure. Closing your account is a little more involved, but still doable and not too much of a headache.
The firm's decision to lead on alternative investment offerings is a break from the norm. That doesn’t mean it’s the best robo-adviser investment platform out there. But, it does mean it’s a great option to diversify your investments – or not put all your financial eggs in one basket. It’s a good looking, transparent and easy-to-use to use platform. While the fees are a little higher than some others, they’re clear with just the two regular charges. If you’re more concerned about regular fees and costs, then Invest.com might probably isn’t the best robo-adviser investment option for you. But, if you want to mix-up your growing investment portfolio, or are keen to try your hand at something a little different, then Invest.com will help you do that quite easily.