Get an affordable personalised investment plan tailored to your financial goals with Ignition Direct.
If you’re looking for a robo adviser to help manage your investments, Ignition Direct offers an affordable service that’s worth considering. Launched in 2015, Ignition Direct is the digital financial advice service for consumers, powered by Ignition Wealth, an Australian financial services and technology company.
Although Ignition Direct is a new offering to Australian consumers, its service is based on proven Ignition Wealth technology that has helped more than 750,000 Australians manage their super more effectively. It provides affordable online financial advice, with the opportunity to speak to a financial adviser if required.
How many portfolios does Ignition Direct offer?
Once you have provided information about the amount of funds you have to invest and your appetite for risk, Ignition Direct will match you with one of 11 investment portfolios. These portfolios are split into three separate categories: Kickstarter portfolios ($5,000 - $25,000), Horizon portfolios (above $25,000) and Self-managed Superannuation Fund (SMSF) portfolios.
- Capital Secure. With a secure risk profile, this portfolio focuses on preserving capital.
- Capital Plus Kickstarter. This defensive profile is mainly focused on generating income, but it also has a small exposure to growth assets.
- Income Kickstarter. This conservative portfolio is designed for investors who are seeking an income stream but also includes exposure to share and property markets to provide capital growth.
- Balanced Kickstarter. With a balanced risk profile, this portfolio offers a slightly higher exposure to growth assets than income assets. The aim is to produce medium- or long-term capital growth.
- Growth Kickstarter. This growth-oriented portfolio is designed for long-term investors and includes a small exposure to income assets to reduce some short-term risk.
- Growth Plus Kickstarter. This is a high-growth portfolio and does not include any exposure to income assets.
- Capital Secure. See description above.
- Capital Plus. This portfolio focuses on income but also includes a small exposure to growth assets.
- Income. This conservative portfolio provides an income stream and some capital growth.
- Balanced. This portfolio is skewed slightly more towards growth assets than income assets, providing medium- and long-term capital growth.
- Growth. This portfolio largely focuses on growth but also features some income exposure.
- Growth Plus. This portfolio is designed to maximise growth over a long-term period.
Include all of the portfolios listed in the Horizon section above.
What asset classes can I invest in?
Ignition Direct will recommend an investment portfolio based on your risk profile. Depending on the portfolio you select, your money is invested in a selection of exchange traded funds (ETFs) listed on the Australian Securities Exchange (ASX). These ETFs track indices across the following asset classes:
- Australian shares
- Global shares
- Emerging market shares
- Fixed interest
What fees does Ignition Direct charge?
There are no setup costs when you establish an investment plan with Ignition Direct. However, you will be charged an initial brokerage fee when you purchase an investment portfolio. This ranges from $11 to $55 if you invest less than $25,000, or from $11 to $110 if you invest more than $25,000 or you are a personal investor.
The following monthly fees also apply depending on the portfolio you select:
- Kickstarter portfolio: $16.50 per month or $198 per year
- Horizon portfolio: $33 per month or $396 per year
- SMSF portfolio: $55 per month or $660 per year
What are the benefits of using Ignition Direct?
There are several benefits on offer when you use Ignition Direct, including:
- Competitive fees. Ignition Direct charges competitive account management fees each month. These fees are also fixed, unlike some other providers that charge fees as a percentage of the overall value of your investments.
- Simple. Ignition Direct offers simple, convenient and affordable financial advice to Australian investors. This allows you to quickly and easily manage your investment portfolio.
- Range of portfolios. With 11 portfolios available, Ignition Direct allows you to choose an investment strategy tailored to your risk appetite and financial goals.
- Asset classes. By choosing ETFs from four leading investment management companies - Blackrock, Vanguard, State Street and BetaShares - Ignition Direct allows you to gain exposure to a wide range of asset classes.
- Independent. Ignition Wealth is an independent financial services and technology company that is not aligned with any of the big banks.
- Speak to an adviser. While Ignition Direct offers a digital financial advice service, it also provides the option for you to speak to a financial adviser if you ever wish to.
- 24/7 monitoring. Ignition Direct provides 24/7 monitoring and management of your funds, including daily portfolio rebalancing recommendations so you can ensure that you remain on track to achieve your financial goals.
How do I get started with Ignition Direct?
Getting started with Ignition Direct is simple and takes as little as four business days. All you have to do is follow these steps:
- Register online at the Ignition Direct website. You will need to provide your name, email address and password.
- Select your investment type: Personal or SMSF.
- Provide personal, demographic and financial information.
- Specify your planned investment amount.
- Answer eight questions regarding your appetite for risk.
- View your recommended investment plan.
- Ignition Direct will help you open two accounts - a Macquarie Bank Cash Management Account to fund your investment account, and an OpenMarkets online broking account which can be used to place stock market trades.
- Invest your money.
- Sit back and let Ignition Direct do the rest. Daily portfolio monitoring and rebalancing recommendations are included to ensure that you stay on track for your investment goals.