Save the savings or try to grow them? Investing has become fashionable and you do not need to have a fortune to afford it. Low cost funds, innovative portals and even apps strive to attract novice investors at low prices. Do you want to grow your money but not endanger large sums? Perhaps, he is convinced that he wants to participate in the investment fever that currently lives the financial sector, but does not have much capital.
None of these situations today is an obstacle. Although the financial crisis made many lose confidence in the banking. Some saw their lifelong savings fizzle out because their banks had invested in complex products that turned out to be worthless. The real estate sector, which had become fashionable as a way to grow savings, had also collapsed. Faced with disappointment, many chose to invest their money is startups or funds, where the sums raised have reached record figures in recent years.
This fashion has made them appear in different options in several countries aimed at the novice or low budget investor. Low-cost investment funds portals with innovative schemes and even mobile applications are on the hunt for idle money without discriminating against the size of the wallet. The technology has helped facilitate access to this complex world who wants to try their luck. BBC World explains how you can become an investor with less than $ 100 dollars.
Wall Street has a problem: the millennial do not invest. They are looking for discounts and low cost services so they are good savers. However, they refuse to put their capital in danger. The 46% consider it very risky, according to the annual survey conducted by the largest investment fund in the world, Black Rock. Among previous generations, this opinion is shared only between 33% and 39% of its members.
In the United States, 80% of millennial have no shares in stock, according to another survey conducted by the Stash application. Stash is precisely one of the companies that are trying to narrow that gap. It is currently only available in the United States. The user has to download it, answer some questions about his personal finances and then he can start investing with a minimum amount of $ 5 dollars.
The app strives to explain in a simple way all your investment options, leaving out the technicalities and talking to your customers with simple language. With it, you can buy fractions of shares or inject money into quoted investment funds (ETF). The user decides on alternatives such as defending the United States, which invests money in strategic security companies or the aerospace sector, such as Boeing. In return, it charges a monthly fee of $ 1 dollar to those who move less than $ 5,000 dollars and an annual fee of 0.25% to those who exceed that amount.
Acorn and Moneybox are very similar, but one operates in the United States and the other in the United Kingdom. The coincidence is that if you decide to download some, you can forget the change every time you make a purchase with your card. For example, if you pay $ 22.50 in a restaurant, these apps will round up and keep the $ 0.50 dollars left to reach $ 23.
The money will be saved in one or more accounts that you create on your platform. In the case of Moneybox, this goes directly to the fund you choose that can be low medium or high risk. Acorn waits for you to raise $ 5 dollars to invest it. Both assure to encourage that return that probably the user would end up spending is inverted and generate returns. Like Stash, both charge a monthly fee of $ 1 dollar and a pound, respectively.