Acorns is a smartphone app that helps users make investments -- small, micro-investments to be specific.
The app lets users select their desired risk-level -- from conservative to aggressive -- and a balance for their portfolio based on the selected risk level. Once the portfolio is set up, it is automatically managed by the Acorns app. Users can re-assess their risk tolerance over time as conditions change, and they begin to appreciate the consequences of their portfolio settings and risk level.
The app uses a proprietary brokerage and advisory engine that is set up to make micro-investing economically viable, and less prohibitive for potential investors. The program does not require a minimum account balance or trade commissions.
Acorns is hoping that this approach will encourage younger people to think more about investing early, and often.
Micro-Investing Apps
The Acorns App Helps Manage Your Micro-Investing Portfolio
Trend Themes
1. Micro-investing - Opportunity for financial technology startups to develop innovative micro-investing platforms that make investing more accessible and affordable.
2. Automated Portfolio Management - Potential for robo-advisory services to capitalize on the demand for automated portfolio management, catering to users' investment preferences and risk tolerance.
3. Education and Awareness - Room for educational platforms and initiatives to raise awareness and provide financial literacy for younger generations, promoting the benefits of early and regular investing.
Industry Implications
1. Financial Technology (fintech) - Fintech companies can seize the opportunity to develop micro-investing apps, leveraging technology to disrupt traditional investment platforms.
2. Robo-advisory Services - Companies specializing in robo-advisory services can capitalize on the growing demand for automated portfolio management, providing customized investment solutions.
3. Financial Education - Opportunity for educational institutions and online platforms to create and deliver financial literacy programs targeting younger generations, encouraging them to start investing early.