How SoFi Auto Invest (our robo advisor) helps you invest.
It’s never too early or too late to start investing. A plan is essential and important for future financial success. Start a plan for your goals and SoFi Auto Invest will help you make smart investment decisions without any additional cost.
“What, exactly, is Auto Invest?”
In simple words, it is an automated advisor that helps you select investments and monitor them over time.
Auto Invest starts with a questionnaire to understand your financial goals, risk attitude and time horizon. Auto Invest then builds an automated portfolio which suits your profile. You can use Auto Invest as an investment account: for retirement, down payment for a house or any financial goal that suits you. Additionally, you can make regular monthly automatic contributions. From time to time, Auto Invest will automatically rebalance the portfolio to stay within your model allocation.
Why Use Auto Invest?
What’s great about Auto Invest is that it offers investors an automated portfolio that the underlying assets will dynamically adjust from time to time depending on market situation. Auto Invest portfolios are built with low-cost index and exchange-traded funds which invests into a diversified portfolio with over 13,000 stocks in over 35 countries. Auto Invest aims to outperform traditional wealth managers by achieving cost efficiency. Auto Invest, compared to traditional mutual funds or investment products, has a time compounding effect and it does this without human emotions.
Further reading: What is ETF? Visit the ETF Trading & Investing Guide here.
Time compounding effect
Auto Invest, which offers relatively low investment minimums, is good for beginner investors. You can start investing any time, remember the value of money has a compounding effect in the investing process. Who doesn’t want to start a long-term investment plan for a financially prepared future?
Further reading: What is Time value of Money?
Avoids human error
In contrast to investing directly, where investors can try to beat the market themselves by buying low and selling high, and vice versa, Auto Invest is developed to help people stick to their plan and make logical financial choices rather than emotional ones.
How much will this cost?
There is no additional fee for you to use Auto Invest!
While traditional advisors typically charge a fee of about 1% to 1.5% of assets, Auto Invest typically uses low-cost index funds and exchange traded funds (ETFs) as investment vehicles. Consider this as a 0.5% fee could reduce an annual return of 7% to 6.5%. This difference may not seem like much, but over time, these costs can add up. Whatsmore, there is no lockup period meaning you can create or withdraw your Auto Invest Goals anytime.
Want to start investing? Check out SoFi Auto Invest Fact Sheet for more information.
About SoFi Hong Kong
Headquartered in San Francisco, California, SoFi is one of the largest and fastest growing fintech companies in the US. Join nearly 4 million members around the world who put their trust in SoFi.
SoFi Hong Kong is Hong Kong’s first SFC licensed brokerage (AXL143) with $0 commission, $0 hidden fees, and $0 membership fees. Get the SoFi Hong Kong app and trade over 15,000 US and Hong Kong stocks for free. For iOS and Android.