While the Raiz Philosophy is to invest small amounts regularly to manage the uncertainty associated with markets, it cannot eliminate it. All investments carry risk, and some of them are not market risk. Different strategies may carry different levels of risk, and assets with the highest long-term returns may have the highest level of short-term risks.
Below is a list of significant risks to consider before using Raiz. For more info, check out our Raiz PDS.
The value of your Raiz Investment Account, can go up or down. Returns are not guaranteed, and you may lose money. The rate of return varies, so future returns may differ from past returns. Risk impacts vary for individual investors depending on age, investment time frame, and other investments held.
MARKET RISK
Changes in financial markets, the economy, political changes, technological developments, and changes in market sentiment continually affect the value of investments and the level of income they generate. For instance, if you request a full cash withdrawal or close your Raiz Investment Account the amount you receive may be different (including less) from the last value displayed in your App due to market movements.
INTEREST RATE RISK
Changes in interest rates can directly and indirectly affect investment value or returns. For example, an increase in official interest rates can result in a increase in the interest you receive on your cash but could also cause a fall in the value of bonds and other fixed interest securities.
The performance of your Raiz Investment Account may vary from the performance of another Raiz Investment Account which invests in the same Selected Portfolio. This is because contributions will be invested in the Selected Portfolio over time and for differing amounts, and the rebalancing algorithm may lead to different weightings between Portfolios, differences in fees charged and in buy/sell spreads incurred when selling ETF to pay fees.
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Important Information
The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.
A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.
Under no circ*mstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.
Your money is insured against fraudulent and criminal activity. If you have a complaint and cannot contact us, you can always contact the Australian Financial Complaints Authority (AFCA). This process and contact details are outlined in the product disclosure statement and they will follow up on your behalf.
Raiz users who have completed surveys have earned an average of $7.50 per month in the past year. For almost all these users, this is more than offsetting their monthly Raiz fees. The most diligent Raiz Survey users complete over 20 surveys a month. A couple of Raiz Survey heroes have earned over $1,000!
For pending investment, you may cancel it within the first few minutes after it was made. Go into the app, click on "Past", click on the transaction, and click “Cancel”. If it has been taken out from your bank, you may cancel it within the same day, but you will need to contact our Customer Experience team to do it.
The primary benefit of our fund's assets being held by a custodian is the assurance an independent custodian provides Raiz users. Hypothetically, if Raiz was to suddenly go out of business, the assets are still held by the Custodian and the dollar value of every user's account would be returned to them.
Users can invest into their Raiz account through round ups, recurring investments, and lump sum deposits. Money in your Raiz Investment Account is invested into a mix of exchange traded funds (ETFs) in accordance with one of seven different Portfolios selected by you.
The value of your Raiz Investment Account, can go up or down. Returns are not guaranteed, and you may lose money. The rate of return varies, so future returns may differ from past returns. Risk impacts vary for individual investors depending on age, investment time frame, and other investments held.
Any services that you receive from Raiz will be subject to the terms of a separate written agreement and the applicable Product Disclosure Statement. Raiz will only provide its services to users who meet its eligibility requirements which, at this time, include a requirement that the users be an Australian resident.
Raiz makes it free to set up an account and charges no brokerage fees, but will charge ongoing admin fees once you deposit money. If you have one of the five main risk-based portfolios or the Emerald portfolio, you'll be charged a $3.50 monthly fee if your balance is under $15,000.
The underlying stocks of the ETFs which make up the Raiz portfolios pay dividends from time to time. The ETF provider pays these dividends out monthly, quarterly or twice yearly. All dividends received by Raiz will be automatically reinvested back into the chosen portfolio of your Raiz investment account.
Raiz's average account balance among customers increased to $2,224 in the back half of last year compared to $1,813 in the first half (an increase of about 23%).
Since launching in 2016, Raiz has achieved solid growth, amassing over 470,000 signups, with 160,000 active monthly customers and $200 million funds under management as at 20 June 2018. Raiz was awarded Australia's Investment Innovator of the Year at the 2017 and 2018 FinTech Business Awards.
Micro-investing through apps like Raiz and Spaceship can potentially give you access to much larger returns than savings account. But that potential for good returns comes with extra risk. Shares and markets can fall in price and you could lose money through micro-investing.
Raiz charges $3.50 per month for accounts with balances between $0 and $15.000, for account balances over $15000 it's 0.275% per year. which is a minimum of $41.25 per year. Under $15000 your yearly fee is $42/yr (12*$3.50).
It has felt like a long journey for us over the last 2 years, which has led us to becoming an independent Australian company. We couldn't have done it without your support. Acorns Australia business is changing its name to Raiz. We are the same same, but different name.
The choice between Raiz and Spaceship depends on preferences; Raiz is known for automation and diversified portfolios, while Spaceship focuses on tech-themed investments, offering a more hands-on experience.
“The change reflects our new autonomy and our ability to move quickly to develop and implement product improvements that are responsive to our customers in the Australian market. This resulted in our recent announcement of the introduction of a superannuation product,” says George Lucas, Raiz Invest managing director.
From 1 August 2023, the monthly maintenance fee for standard Raiz portfolios will increase to $4.50 (from $3.50) for active account balances of less than $20,000 (the previous threshold being $15,000). For accounts with balances equal to or greater than $20,000, the account fee remains the same at 0.275% per year.
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