QuietGrowth enhances portfolio options

13-Apr-2016

By Sarah Kendell

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Robo-advice provider QuietGrowth has added a new range of risk-based portfolio options to its software, giving users the ability to choose different risk profiles for different parts of their investment.

QuietGrowth chief executive Dilip Sankarreddy told financialobserver the changes were in response to user feedback for more tailored investment options, while the firm had also launched a mobile app to allow users to more easily access their portfolios.

“We think over the next five to 10 years this particular vertical of online investment management will become more tech-oriented and more personalised, so we will be making further improvements to our software offering going forward,” Sankarreddy said.

He added the multiple risk portfolio feature would allow clients to allocate different portions of funds to different risk profiles, such as higher risk portfolios for longer-term retirement savings, or moderate risks for funds that had a medium-term time horizon, such as savings for children’s education.

In a broader sense, the prospects for the direct-to-consumer robo-advice space were strong as the concept was set to grow in awareness among working professionals, he said.

“The cost of customer acquisition at this point in time is relatively high because the products have not gone mainstream, but over the next five to 10 years we expect that one in three working professionals will invest at least part of their funds through automated services,” he said.

For that reason it was worthwhile for financial advisers to look to partner with consumer-facing robo providers, which could provide outsourcing services for the investment management part of their role, leaving them to focus on more holistic advice, he added.

“Right now we are a purely direct-to-consumer business, but we are interested in talking to financial advisers about partnerships, because we think we are someone they can benefit from,” he said.

“Investments are a component of financial planning, but there are many other aspects too, and we believe by referring their clients to robo services for the investment part it will allow advisers to focus on those other aspects that may add more value to their clients.”

The service was free for investments under $10,000, with competitive fees for larger investments, making it a good option for cost-conscious clients, he added.

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