InvestSMART is a discount managed funds broker that was established in 1999, offering free and easy access to a range of leading managed funds. In July 2015, InvestSMART launched its own automated investment advice service.
The InvestSMART robo advice platform calculates your risk appetite and investment goals in a few simple steps before matching you with one of nine diversified ETF portfolios. This allows you to automate your investments and take emotion out of the decision-making process. The technology automatically prompts you with reminders when you have reached investment milestones and you need to make new decisions.
The platform also features built-in tax efficiency, an app to help you manage your investments, and brokerage fees from around 0.05% per trade.
How many portfolios does InvestSMART offer?
InvestSMART offers nine portfolios to investors:
Low-medium risk portfolio with a mix of asset classes aimed at achieving income and capital protection.
This portfolio is for people seeking a medium- to long-term investment. The Core Growth portfolio provides moderate to high levels of capital growth. The asset classes held in this portfolio are Australian equities, international equities, property and infrastructure, cash and fixed interest.
The Equity Income portfolio provides a steady income through dividends from companies with a low risk of bankruptcy. The asset classes held in this portfolio are Australian equities and cash.
Low-medium risk, ideal for investors looking for a regular income stream.
Medium risk, invests in a range of ASX listed hybrids, debt securities and cash.
Medium to high-risk, this portfolio invests in undervalued Australian shares.
This portfolio suits people who are willing to tolerate a high level of volatility and are looking to invest for at least seven years. The International Equities portfolio offers the potential for high capital growth as well as more than 90% exposure to global equity markets.
Property and Infrastructure
The InvestSMART Property portfolio provides returns equivalent to the Australian A-REIT index through investment in Australian-listed property securities.
Small Companies Managed Fund
Very high-risk, this is a fund consisting of ASX-listed small companies, for investors seeking capital growth.
What fees does InvestSMART charge?
The investment fees charged by InvestSMART are tiered, meaning that they vary depending on the amount you invest. These fees also vary depending on the investment portfolio you select:
- Diversified Income 0.45% to 0.77%
- Core Growth. 0.45% to 0.77%
- Equity Income. 0.65% to 0.97%
- Interest Income. 0.45% to 0.77%
- Hybrid Income. 0.60% to 0.92%
- Equity Growth. 0.65% to 0.97%
- International Equities. 0.45% to 0.77%
- Property and Infrastructure. 0.45% to 0.77%
- Small Companies Managed Fund. Up to 0.97%
There are also a few transactional and operating costs that apply across all portfolios:
- Brokerage fee. Approximately 0.05% plus GST
- Settlement fee. $0.33 per securities transaction
- Recoverable expense fee. $30 to $60 per investor per year
What asset classes can you invest in when using InvestSMART?
InvestSMART’s diversified portfolios allow you to invest in ETFs across the following asset classes:
- Australian equities
- International equities
- Fixed interest
- Property and infrastructure
The allocation of each asset class varies depending on the portfolio you select. For example, while the InvestSMART Fixed Income portfolio invests in cash (21.6%), fixed interest (29.97%) and Australian equities (48.15%), the Intelligent Investor Growth portfolio spreads your investment across Australian equities (93.2%) and cash (6.5%).
What are the benefits of using InvestSMART?
- Easy to get started. It’s quick and easy to get started with the InvestSMART robo advice service. All you have to do is answer a few simple questions to determine your investment goals and your risk tolerance levels then you set up a portfolio.
- Wide range of portfolios. With seven diversified portfolios to choose from, InvestSMART offers asset allocations to suit the needs of a wide variety of investors.
- Built-in tax efficiency. Each portfolio is automatically set up to maximise its tax effectiveness, while InvestSMART also provides daily tax loss harvesting and tax-effective rebalancing of your portfolio.
- Automated portfolio management. This robo advice platform allows you to automate your investment decisions, including everything from timing the market to rebalancing your portfolio. It also provides important reminders once you have reached specific investment milestones and may need to adjust your strategy.
- Competitive costs. With competitive investment and brokerage fees, InvestSMART can help you save money on investment costs.
How can I get started with InvestSMART?
You can sign up for InvestSMART’s automated investment advice service by following a handful of simple steps. The first step is to click through to the InvestSMART website and provide your name and email address.
You will then need to specify your investment timeframe and your appetite for risk before providing information about your current assets and investments. Once you have completed these steps, InvestSMART’s algorithms and automation technology will create your tailored risk portfolio and then match you with one of the seven diversified ETF portfolios.
You will also need to verify your ID. This can be done electronically if you provide the details of at least two forms of ID, for example your driver’s licence and passport.
Finally, remember that you will need to transfer funds in order to open an investment position. You have the option to set up a one-off direct debit or a regular contribution plan.