Raiz is a micro-investing app that provides an accessible entry point into the stock market for individuals with limited disposable income or savings. Here’s how it works:
- What is Raiz?
- Raiz (previously known as Acorns) is a micro-investing platform that aims to enable a new class of investors.
- It was one of the first micro-investing apps to launch in Australia back in 2016.
- Raiz caters to millennials and has become a market leader, hosting over 600,000 accounts with more than 280,000 active users and managing over $1 billion in funds (including its superannuation product) as of 2022.
- How Does Raiz Work?
- Users can invest in Raiz through various methods:
- Round-ups: Automatically invest spare change from daily purchases. For example, if you buy a coffee for $4.50, Raiz rounds up the transaction and invests the difference.
- Recurring Investments: Add money to your Raiz account daily, weekly, or monthly.
- Lump-Sum Deposits: Make one-off capital contributions when you have extra funds.
- Raiz Rewards: By signing up with this referral code (RVS57P) you can earn $5 after completing sign up and investing $5. There is often promotions that increase that $5 reward to $10 and even $15.
You can also earn cash rewards in Raiz by shopping online with various brands, which are then invested in your Raiz account.
Raiz also offers surveys which can be completed to earn more rewards.
- Users can invest in Raiz through various methods:
- Investment Portfolios:
- Raiz offers a range of ready-made investment portfolios, allowing you to choose one that suits your risk tolerance.
- Conservative: This portfolio is the least risky and is suitable for those who prioritize capital preservation. It typically includes a mix of low-risk assets such as bonds and cash.
- Moderately Conservative: A step up from the conservative portfolio, this one aims for moderate growth while still maintaining a focus on capital preservation.
- Moderate: Balanced between risk and growth, the moderate portfolio includes a mix of assets like stocks, bonds, and cash.
- Moderately Aggressive: For investors willing to take on more risk, this portfolio aims for higher returns by including a larger proportion of stocks.
- Aggressive: The most aggressive portfolio seeks maximum growth and includes a higher allocation to stocks.
- Emerald: This socially responsible portfolio aligns with environmental and social values. It aims for growth while considering ethical factors.
- Sapphire: A unique portfolio with 5% of funds invested in Bitcoin, appealing to those interested in cryptocurrency.
- Fees and Considerations:
- While Raiz has many benefits, users should be aware of fees associated with the platform.
It’s essential to understand the costs and risks before investing. - For standard Raiz investment accounts, there is a monthly fee of $4.50 if your balance is under $20,000.
- If your balance exceeds $20,000, the fee is 0.275% per year on the portion above $20,000.
- There other portfolio types that have different fee structures (some a bit more), but they’re still fairly similar. Check the Raiz website for more details.
- While Raiz has many benefits, users should be aware of fees associated with the platform.
Raiz provides an accessible way for young Australians to dip their toes into investing, even with limited funds. Remember to explore the available portfolios and consider your financial goals when using this micro-investing app.
If you’re looking to sign up, dont forget to use the referral code RVS57P to get a reward of at least $5
For more detailed information, you can visit the Raiz website
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