A monthly management fee of $2.50 is charged on balances under $10,000. For example, if you buy a coffee for $3.60, Raiz will round it up to $4.00 but invest the 0.40 cents on your behalf. The Raiz app works by rounding-up your expenses to the nearest dollar and investing the difference.
The end result should be a higher return for lower risk. Raiz spreads your investment across hundreds of the most widely held Australian and international companies, corporate bonds, government bonds and cash. Diversifying is a financial management strategy that mixes different assets within a single portfolio. Raiz (formerly known as Acorns) is a micro-investing app that automatically deposits your spare change into one of six diversified portfolios. If you’ve already got your budgeting and tracking apps lined up, the next thing you could look at is investing some of your hard-earned cash.
