Until not so long ago, investing and managing wealth was a complex and costly process. To access professional financial management, it was necessary to go to a traditional banking institution, where large sums of money were required, and high fees were charged.
Many of these services imposed high investment minimums, usually in the range of 250,000 to 500,000 Euros, which left out a large part of the population. To have more personalized management, you had to have more than 1 million Euros.
And if we talk about costs, traditional managers were (and still are often) not very transparent and could charge more than 2% per year in total costs. Although costs in general have moderated, the data we extract from our comparator service indicate that costs above 1.5% are still very often charged.
But there is much more. Let’s review all this in more detail.
The Fintech and digital investment revolution
Today, thanks to the advancement of financial technology, Fintech* platforms such as inbestMe have democratized access to investment. Our digital approach allows anyone to start investing from amounts as low as €1,000, with much lower management fees for a delegated portfolio management service where the average investor gets a better return.
*Note: The word Fintech comes from combining the word finance and technology. In short, a fintech is a digital platform that combines finance and technology. Fintechs can be automated portfolio management platforms (Robo Advisor) such as inbestMe or other solutions such as platforms for buying and selling financial assets (stocks and ETFs), neo banks (digital banks) or payment platforms, among others.
Accessibility and flexibility
Fintech platforms have radically changed the way we manage our finances. With inbestMe, investing no longer depends on having a high purchasing power or physically going to an office. Through our platform, you can sign up in minutes and access your portfolio from your cell phone, track it in real time, set financial goals and receive personalized guidance, all without leaving your home. Even many of the traditional services require values between €100,000 and €500,000 to have a similar level of service to what inbestMe offers starting from €1,000.
The efficiency of indexed management
At inbestMe we design investment portfolios based on your risk profile and financial objectives, using index funds, ETFs or pension plans (formed by ETFs) to achieve global diversification, reduce costs and achieve maximum efficiency thanks to passive management and automated investment. Indexed investment vehicles allow access to different asset classes worldwide with reduced fees and greater operational efficiency. Moreover, our portfolios are not static: our investment committee monitors and adjusts if necessary the composition according to new funds or ETFs that may appear and the long-term outlook.
Transparent and low rates
One of the biggest advantages of Fintech platforms and automation is cost reduction. At inbestMe, we strive to maintain maximum transparency in our costs. There are no hidden commissions and our fees are adapted to the size of your investment, allowing you to make changes or withdrawals without penalties.
The average total cost is 0.44% all-inclusive:
- inbestMe management (average): 0.19% (from 0.13% to 0.41%)
- Custody: 0.11%.
- Average cost of funds used: 0.14%.
This is in contrast to traditional investment services, which can exceed 1.5% per annum. There are some that are still charging 2.5% or more for a similar service.
Higher yield of 4% APR
All of the above allows the average investor in inbestMe to obtain an annualized return of more than 4% of what he would obtain on average in a traditional service. From the beginning this average investor would have obtained €165,000 instead of €110,000 for an investment of €100,000 and this is a lot of money.
Customization
Each client is unique, which is why we offer multiple portfolios to suit your risk profile, time horizon and specific financial objectives. From savings portfolios, target portfolios, bond portfolios to diversified portfolios with 10 profiles with greater diversification and increasing equity exposure, we tailor our solutions to ensure that each client finds the strategy that best suits their needs.
If this is not enough from €100,000 we can customize your portfolio with our inbestMe Advanced service where together with your manager you can further fine tune your portfolio to your needs.
Management by objectives and financial planning
Goal-based management is integrated into our platform, allowing clients to set up multiple accounts to optimize their different financial goals, from savings to retirement. In addition, tools such as the goals simulator help visualize financial progress and make informed decisions to help achieve those goals.
Your investment on autopilot
At inbestMe we believe that investment success depends not only on choosing a good strategy, but also on maintaining it over time with minimal effort. That’s why we have developed an automated approach that allows your investments to really work for you. Automation has reduced the barriers and common mistakes in investing, helping you to maintain a consistent strategy without emotional intervention.
Our system includes key functionalities such as the Goal Forecaster, which allows you to plan your long-term financial goals; automated recurring contributions, and automatic reinvestment that guarantee a constant investment, maximizing the effect of compound interest.
In addition, automatic rebalancing ensures that your portfolio remains aligned with your risk profile, while continuous monitoring of portfolios ensures that they are well-prepared to withstand market swings over the medium to long term.
In short, investing on autopilot with inbestMe means delegating management so that your investments are optimized without you having to worry about the day-to-day.
Continuous support and Service Plus
Digitalization is not incompatible with good human support.
Our support is one of the most valued aspects by our customers.
But if this is not enough, with the inbestMe Plus service, starting from 100,000 euros, we offer an even more personalized level of attention: no need to have a million euros to access a premium treatment.
Financial education
It is not enough to offer access to investment, we also want to accompany our clients on their financial journey. That is why we provide, in addition to the tools mentioned above, educational resources, articles on general information that allow them to make informed decisions. Our mission is based on empowering investors, not only with excellent management, but also by providing them with the necessary knowledge to understand how their wealth should be managed.
Conclusion: The future of investment
Fintech platforms are revolutionizing the financial world, making it more accessible, transparent and efficient. At inbestMe, we are committed to offering an innovative service that allows our clients to manage their wealth in a professional and simple way. Discover the investment of the future today with inbestMe!
The future of your finances is just a click away.
