The traditional method of investing works by having to meet with an investment advisor in person, at your/their office, or your home. They would ask you a set of questions including your age, total money you possess to invest, is it a monthly sum, a lump sum, the amount of risk you can tolerate, what do you seek to achieve, capital protection, capital multiplication, etc.
They gather all this information and makes a hypothesis and tell you X percentage of your portfolio should go into this and the other percentage of the portfolio into something else.
Robo investing hands over the tasks of making suitable investments to an automated investment advisor that would otherwise be a human being. Dealing with a human entity as an investment advisor is a traditional method. A Robo advisor refers to an automated investment platform that does pretty much the same job as a human investment advisor. It asks you questions and after answering them you would get a portfolio.
Unhedged
Unhedged is an Australian automated investment platform that uses algorithms to help you invest your funds into the best suitable places in the market and aims to outperform the broader market. It has a team of investment professionals and experienced entrepreneurs who aim to make it possible for everyday investors to have advanced investment strategies that were previously inaccessible with smaller amounts of capital. Not only do they have these investment professionals but also first-class trusted partners who enable the platform to trade cost effectively and ensure client funds are kept secure.
The Unhedged investment platform will work with a simple mobile app once they launch in July 2021. To access the Unhedged platform, you simply download the Unhedged mobile application. After downloading, sign up and create a demo portfolio, you can either have a custom portfolio or you can choose from the preset combination of their algorithm funds. Once you are happy with the strategy, you can start investing real money. After that, Unhedged will take care of rebalancing your investment and you will not have to worry about any continuous maintenance.
How is Unhedged better than any other investment application?
Unhedged, unlike other investment apps makes the process of investing transparent, easy, and budget-friendly. You can compare Unhedged with other renowned apps like Raiz, Sixpark, Stockspot, and other investment apps using the points presented below:
- The Unhedged app possesses preset algorithms that collect and trades your money in the form of funds. Your money is secured in the hands of a highly rated custodian (Melbourne Securities Corporation Trustees) so you do not have to worry if for some highly unlikely reason the app ceases to operate as the investments cannot be claimed by creditors.
- Unhedged does not charge any trading, commission, or transaction fee that means your account only has a small base fee of 0.49% per year and a performance fee if the fund performs better than the benchmark. This platform encourages investors to compound more efficiently by operating at a low cost, unlike other expensive investment applications. You will only have to pay a fee of $5 monthly, from this coming August. Unhedged is also offering a one-month fee off for every person who refers and signs up.
- Unhedged charges an annual management fee of 0.49%, only for balances over $5,000 which will be taken from your funds which will cost you only $24.50 a year on a $10,000 balance. An overperformance fee will be deducted when your funds perform better than the benchmark. That is how unhedged aligns itself with your financial milestones.
- By signing up for Unhedged one gets a well-managed scientifically backed portfolio that efficiently invests in stocks, bonds, and commodities. Rebalancing is free so you can switch to automatic rebalancing to keep your portfolio on track.
