acorns australia

How to invest your spare change with Acorns Australia

Turn your everyday change into an investment through a diversified portfolio roundup financial service.

Acorns Australia is a financial services provider that helps people invest their money through a simplified process that is connected to everyday life. It offers a unique way of investing in shares and fixed income securities by allocating it's virtual spare change to this micro-investing tool.

Acorns Australia is passionate about making it simple to invest from a young age, without having to save for years to acquire the necessary lump sum amounts.

Why should I invest with Acorns Australia?

There are many companies that make it possible to start investing from a young age without needing big lump sums. But, it's not every day that you find a product that does this by saving and investing your spare change. Acorns Australia will automatically save and invest your spare change into the mix of Exchange Traded Funds (ETF's) quoted on the ASX that you choose according to your own preference in portfolio's. Not only will the financial service invest your spare change, but it can also invest lump sums and recurring weekly or monthly amounts that you select.

Invest in your spare change with Acorns Australia

Save and invest in your spare change. Set an investment profile and Acorns Australia will do the rest.

To add to this, Dr. Harry Markowitz, who many call the father of “modern portfolio theory”, is a special adviser to the Investment Committee that constructs the Acorns investment Portfolios.

What are some of the benefits of using this financial service?

Three investing methods

You can use three different methods to invest money when using Acorns Australia. The first is a key benefit of using this financial service and is called Round-Ups. This approach invests the change of your daily purchases. Secondly, is the Recurring approach, where you can set daily, weekly, or monthly amounts that will allocate money to your investments on a recurring basis. Thirdly, you can use lump sums to boost your investments with bigger, once-off, capital amounts.

Personalised portfolio

Choose from 5 diversified portfolios constructed by industry experts under the guidance of Nobel-prize winning economist, Dr. Harry Markowitz. These portfolios consist of a mix of exchange traded funds (ETFs) quoted on the Australian Securities Exchange (ASX), and are constructed to reach targets that speak to different financial goals and circumstances.

It’s a micro-investing platform

This type of platform makes it easy for everyday people to turn their everyday purchases into an investment tool. You can use this financial service for a small fee compared to bigger and more extensive platforms that charge high fees for unused features when it comes to micro-investor users.

Security

Acorns Australia stores all your information on a remote server with bank-level security and data encryption. Your information won't be stored on your device and your funds are insured against fraudulent and criminal activity including cyber-crimes. Online accounts are protected by SSL encryption and multi-factor account authentication processes.

Flat-fee structure

There only flat fees charged according to the tier your monthly balance falls in. For accounts under AUD$5,000, there will be no account fee and only a maintenance fee of AUD$1.25. If your balance is equal to or exceeds AUD$5,000, you will pay not pay a maintenance fee for the month but an account fee of 0.275% p.a for that month.

You can withdraw and deposit money as you wish

There are no limits to a number of withdrawals and deposits you can make, and no fees for making them.

You can take advantage of fractional investing

One of the most powerful benefits of Acorns Australia is that you can allocate fractional interests in ETF Units to individual investors. This allows you open an Acorns Investment Account and invest in your personally selected, diversified portfolio, with only AUD$5.00.

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How does it work?

As mentioned above, Acorns Australia is a micro-investing tool. Its process is comprehensively explained on their website, but below is a simplified explanation after you have created an account with Acorns Australia (explained further on in the article):

1. Allocate money

You will need to allocate money to your account using one of the three methods detailed above in the article. The unique benefit of Acorns is that you can allocate your change from daily purchases to your account and it will be invested automatically. Round-ups mean that your transactions are rounded up to the nearest dollar and the actual change you would have had is now allocated to your account and will be invested.

2. Choose your portfolio

There are 5 diversified portfolios available that consist of a mix of exchange traded funds (ETFs) quoted on the Australian Securities Exchange (ASX). These portfolios are constructed by an investment committee that is assisted by Nobel-prize winning economist, Dr. Harry Markowitz.

3. Invest your spare change

Acorns Australia has a unique algorithm that works to keep the funds in your account within the specified range allocated to the portfolio you choose. It balances the ETF's despite market fluctuations but requires you to agree to the automated procedure of rebalancing your account by re-investing the ETF's automatically. Any activity within your account, like withdrawals or deposits, will start corresponding transactions that work to automatically rebalance your account so that it stays within the target range of your chosen portfolio.

4. Withdraw or deposit at will

You can set your methods for investing money and also at any time withdraw or deposit money to add to your account.

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What fees will you pay to use the service?

The financial service offers a flat fee for usage. For accounts under AUD$5,000, there will be no account fee and only a maintenance fee of AUD$1.25. If your balance is equal to or exceeds AUD$5,000, you will pay not pay a maintenance fee for the month but an account fee of 0.275% p.a for that month.

As with any financial service, it is advised to study the fee structure (there is a comprehensive overview on the Acorns Australia website, under Product Disclosure Statement) to know the fees you can expect, for example, a dishonour fee.

What support can you expect from Acorns Australia?

The financial service offers dedicated support through email and will get back to you within 1-2 business days. You can also contact the team through Twitter.

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What are the pros and cons of using Acorns Australia for my next trade?

The pros

  • Unique method of capturing funds through rounding up purchases you already make
  • Portfolios are constructed with the help of a Nobel-prize winning economist
  • Offers a powerful micro-investing platform on the web and on mobile applications
  • Offers flat fees
  • Banking level security

The cons

  • Cannot build complex or big investment portfolio's as it is focused on micro-investing
  • Usual investment risks still apply
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This all sounds great, how do I get started with Acorns Australia?

  1. Click this link to download and register for the service (you can also click on "Get deal on site" above)
  2. Fill out your basic personal details and create passwords
  3. Link your debit or credit card for the Round-up feature
  4. Connect or create the funding account that will invest your allocated money
  5. Tell the financial service more about yourself for a better user experience

Do you have more questions?

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2 Responses

  1. Default Gravatar
    AselApril 21, 2017

    I have an Australian bank account, but I am not an Australian citizen. Can I still apply for Acorns Australia?

    • Staff
      HaroldApril 21, 2017Staff

      Hi Aselrox,

      Thank you for your inquiry.

      Typically, after you’ve installed the free Acorns app, all you’ll need to start investing is:
      Your online banking login information (which generates the round ups).
      Your bank account and BSB number (where your money is pulled from).
      Regarding citizenship, it would be nice to directly coordinate this matter with Acorns. That way they can provide you the available options that is right for you.

      Cheers,
      Harold

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