The Acorns App Helps Manage Your Micro-Investing Portfolio
Rahul Kalvapalle — March 24, 2014 — Lifestyle
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.
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.
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.
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