Acorns Story
What is it?
Acorns Grow Australia (aka Acorns) is a micro-investing product that lets you invest virtual “chump change” in a diversified portfolio of exchange traded funds (ETFs) listed on the ASX using an app on your mobile phone or the website acornsau.com.au. Run by former RBS investment banker Brendan Malone, Acorns was launched in Australia in February 2016 through a joint venture between fast-growing US-based fintech start-up Acorns Inc (backed by payments giant PayPal) and Sydney-based structured products firm Instreet Investments. As a registered managed investment scheme (or managed fund), Acorns is overseen and regulated by the Australian Securities and Investments Commission (ASIC).
How does it work?
Acting like an automated coin jar for loose change, Acorns’ default setting will round up the balance of your debit or credit card transactions to the nearest dollar. For example, if you spend $3.75 then 25¢ (having rounded the transaction to $4) goes into your Acorns investment account. While 80% of Acorns’ investors use the default round-up, you can round up to any amount up to $1. Every time another $5 accumulates in your account, it’s invested in a mix of ASX-listed ETFs, based on a diversified portfolio that you’ve selected from one of six options that best reflects your risk appetite.
You can contribute to your Acorns investment account by either making a minimum lump sum deposit of $5 or activating round-ups, or through regular, daily, weekly or monthly deposits. You can withdraw all or part of your investment from your Acorns account at any time through the app or website. Check your investment history, project future balances and compare performance in the portfolios through the app, or download monthly statements.
What are the pros?
This story is from the November 2017 edition of Money Magazine Australia.
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This story is from the November 2017 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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