Raiz investment review 2022 | Is Raiz a good investment- {UPDATED}
Raiz investment review: In the past, the Australian economy went through doldrums, forcing the financial products distribution companies to design new ways of making money. According to researchers who have done numerous studies, Australian posterity may encounter a forthcoming economic nosedive. Considering this situation, Australians have moved their attention towards micro-investment as conventional investing can put hard-earned money in danger; moreover, people need more funds to invest traditionally. Hence, a micro-trading application named Raiz was introduced into the market. People park their funds in this application to mint money as passive income.
This article is an honest attempt to decipher entirely how this application operates and what its details are.
Raiz investment review: What is Raiz?
Raiz investment is an application with a targeted audience of Australian citizens. Its prime objective is to permit investment even with a trivial amount of money. Its development was completed in 2016.
This capturing application empowers users to park funds in pre-designed portfolios even with a minuscule investment of 5$. The company’s central focus is amassing trivial amounts of assets to create collosol wealth. Raiz’s interface is akin to the applications such as Uber and Airbnb. There is no denying this conviction that most people are comfortable with Uber as it enables drivers to target people who require any conveyance to commute; likewise, Raiz strengthens a comfortable connection betwixt people having surplus cash at their disposal with Exchange Traded Fund (ETF).
ETFs amass this investment and park the funds in divergent shares with the ambition of making a profit. It is the modus operandi of the Raiz investment scheme.
Working and Operability of Raiz:
The application “Raiz” exhibits a sophisticated, user-friendly interface and experience that simplifies the application’s method. Here is a concise write-up on how you can park funds in Raiz. The Raiz investment methodology is as follows;
1-Deposit money:
Raiz users can add money in three divergent options to the Raiz investment account.
The three investment options are as follows
- Round-ups:
In this deposit scheme, Raiz enhances the invested money by putting in some amount and then supporting it.
- Lump-sum:
It is nothing but investing all the money at your disposal from your bank account
3–Recurring deposits:
This scheme permits you to assign or earmark a designated amount of funds, which you can deposit daily, weekly or monthly in the Raiz account.
Opt for a custom portfolio
After deciding on the investment, you have to choose an investment portfolio. Investment portfolios are classified into six choices: Moderately Conservative, Moderate, Moderately Aggressive, Aggressive, and Emerald.
What is Raiz’s Portfolio?
Each portfolio comprises diverse classifications of the same ETFs depending on varying degrees of risk. Seasoned experts design these portfolios to adjust to and attain varied aims, considering the risk-taking appetite and the time at your disposal to stay in the market.
The users can alter their portfolio whenever they wish without paying any extra amount—the portfolio assists in customizing Raiz’s investment to make a profit.
Raiz investment review: What are Raiz ETFs?
The complete form of ETF is an exchange-traded financial fund that comes in various compositions, including stocks, bonds and sometimes both in collaboration.
3-Withdraw:
After earning money and passing some time, the user can comfortably part ways by withdrawing funds without shelling out any hidden or apparent fees from her pocket. But, the lock-in period is five years, and you can start your money with tremendous ease after crossing that.
3-What is Raiz Investment?
Raiz utilizes the funds in your accounts to invest in various shares or divergent portfolios to churn more money.
4-Raiz Fees:
A user can make an account on Raiz at no cost. However, some charges are there, which are mentioned below:
1-Maintenance Fees:
Firstly, the user must pay maintenance fees to Riaz while depositing funds in the investment account. In case the investment is in a risk-based portfolio or the Emerald Portfolio, a charge of $3.50 monthly fee comes into play when the balance is below $15,000. Likewise, a custom portfolio account comes in place, which is slightly more with a price of 4.50$ per month if the money deposited is below $20,000.On the other hand, the investors of Sapphire portfolio have to pay a cost of $3.50 and their account balance is not considered.
2-Account Fees:
Raiz doesn’t charge for trading and monthly insurance fees when the balance in the account of a user exceeds $15000; instead, it leaves a minuscule cost of 0.275% yearly per month. To clarify, for example, when a user owns $20,000 in his account, he will pay 55$ per year. Similarly, the same charge applies to all other portfolio options. Nonetheless, the user must pay an amount of 0.275% as an account fee for the Sapphire portfolio despite paying the maintenance fee.
3-ETF management fees :
It is evident from the above paragraphs that Raiz is extremely honest in its fees and doesn’t hide it. Likewise, the investor must also be aware that management fees charge applies to ETFs. So, they levy a collective charge of 0.04% per year, equivalent to $20 per year, on the balance of $50,000.
Alluring features of Raiz:
This content exhibits a few striking features of Raiz that will enhance your interest in investing in it: Those willing to invest in it will surely enjoy these features.
1-It is worthwhile for beginners:
One of the prominent reasons for Raiz grabbing so much fame and significance is that both masses and classes can use it despite being novices because you do not require heaps of trading experience to succeed on this reliable platform. On the contrary other investment avenues, the investors need a substantial amount to commence. The prospective investor can embark upon the investment journey by shelling out a minuscule amount of 5$.
2-Fractional Investing:
A considerable and truly main attribute of this investing Platform is that it permits its investors to purchase fractions of ETFs, keeping into consideration the amount of money you have amassed in your chosen portfolio.
3-Regular Savings:
Raiz makes sure that routine meagre investments can accumulate substantial wealth in the future. Due to the automatic round-up attribute, the investor can deposit money umpteen times as per the wish.
4-Withdraw Freedom:
Raiz provides unlimited deposits and withdrawals with not taking the time frame into consideration. The user can deposit and withdraw as per their want.
Raiz investment review: Is Raiz for Kids?
The central focus of Riaz is not on only youngsters and older adults; the Raiz kids scheme permits you to amass funds in an investment account for those children whose age is less than 18 years. Moreover, you can call your existing account and need not open a separate one for your kid. You can choose as per your wish what ratio of your top-ups should go to the kid’s account.
Pros and Cons of Raiz application:
Pros
The investors experience an emotionally enriching desktop and android experience through this investment platform. Moreover, it doesn’t annoy you with pesky notifications.
The application filling form process is overly simple, and the suggestions provided work like a charm for the user.
Depositing and withdrawing money is an overly simple process.
The customer support service is seamless, with all-time assistance.
Raiz also provides benefits to its users through cashback and shopping discounts.
Cons
Raiz charges an exorbitant fee even for low-account balances. For example, for those having a balance of 250$, a charge of $3.50 adversely impacts their investment.
Due to market conditions, there are risk factors, and the investments can go for a toss. A sharp decline can lead to a substantial reduction in the fund value.
You need the option to invest your funds in desired different stock markets.
Only individuals have the option to invest in this platform.
Raiz investment review: Is Raiz safe
Our research states that a sizeable proportion of users have given satisfactory reviews to Raiz. In their opinion, Raiz carries an Australian Financial Services License; hence even if anything adverse o happens., the trader’s money will not go for a toss. Moreover, the increased security threats have prompted the company to build a robust security setup. To conclude, investment in Raiz is safe. Therefore, it is prudent to invest in Raiz.