The conservative portfolio focuses more on bonds and will appeal to the kind of investor who prefers to “play it safe,” albeit at the cost of higher returns. Acorns Recommends a Portfolio According to Your Personal Needs There are five main portfolio types to choose from: conservative, moderately conservative, moderate, moderately aggressive, and aggressive. Markowitz was personally involved in the designing of each of the portfolios. The back end of the Acorns investment app is guided by the concept of Modern Portfolio Theory as described by the Nobel Laureate, Dr. Experts Make Investments for YouĪll this takes place behind the scenes, and you do not have to worry about which stocks to invest in and which to avoid.Īll the nitty-gritty details regarding the specific stocks or bonds to invest in are handled by investment management experts.Ĭheck out my full video walkthrough below. When the balance in your holding account hits $5.00, the Acorns investing app will automatically invest it into the market and simultaneously rebalance your portfolio. You Won’t Have to Wait Long to Start Investing (More about this later).įor instance, if you make a purchase worth $7.25, Acorns will automatically channel $0.75 to your holding account for investment. This applies only to the debit and credit cards that you have linked to the app. The Acorns investing app automatically rounds-up the value of each transaction you make and channels your spare change into a holding account. Acorns is the Hands Off Approach to Investing The idea is to invest any loose change that accrues from your day to day transactions.Įvery time you go to a restaurant, the grocery store, or the supermarket and make any purchase, there is an opportunity to invest. This is the main concept, and a quite ingenious one we must say, around which the Acorns app is built. Let us start by getting a quick overview of how this application works and how you can leverage on this service to put your spare change into better use.
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