Acorn Invest is a popular investment app that has been gaining traction in recent years. It is a mobile app that allows users to invest their spare change in a diversified portfolio. It is an excellent way for beginners to start investing in the stock market. In this article, we will be discussing everything you need to know about Acorn Invest and provide honest reviews.
Acorn Invest was founded in 2012 by Jeff Cruttenden and his father, Walter Cruttenden. They wanted to create an app that would help people start investing in the stock market. The app rounds up your purchases to the nearest dollar and invests the difference in a diversified portfolio. It has grown to have over 8 million users and is valued at over $1 billion.
How Acorn Invest Works
Acorn Invest is an automated investment platform that is available on both iOS and Android devices. The app links to your bank account, and it rounds up your purchases to the nearest dollar. For example, if you buy a coffee for $2.50, the app will round it up to $3.00 and invest the extra $0.50 in a diversified portfolio. You can also set up recurring investments or make one-time investments.
Acorn Invest offers five different investment portfolios, ranging from conservative to aggressive. The portfolios are made up of exchange-traded funds (ETFs) and are designed to be diversified. You can choose the portfolio that best fits your investment goals and risk tolerance.
Acorn Invest charges $1 per month for accounts with a balance under $5,000. For accounts with a balance over $5,000, they charge 0.25% per year. They also offer a free account for college students for up to four years.
Pros of Acorn Invest
Acorn Invest has many benefits, including:
Easy to Use
Acorn Invest is straightforward to use, and it is an excellent way for beginners to start investing in the stock market. You can set up automatic investments, and the app does all the work for you.
Acorn Invest offers diversified portfolios that are designed to minimize risk. They are made up of ETFs and are designed to be well-rounded.
Acorn Invest’s fees are low, especially for small accounts. The $1 per month fee is affordable for most people, and the 0.25% fee for larger accounts is competitive with other investment platforms.
Cons of Acorn Invest
Acorn Invest has some drawbacks, including:
Small Investment Accounts
Acorn Invest is best for small investment accounts, as the fees can add up for larger accounts. If you have a larger account, you may want to consider other investment platforms.
Acorn Invest does not offer customization, which may be a drawback for some investors who want more control over their investments.
Acorn Invest is an excellent investment app for beginners who want to start investing in the stock market. It is easy to use, offers diversified portfolios, and has low fees. However, it may not be the best option for larger investment accounts or for investors who want more customization. Overall, Acorn Invest is a great investment app that is worth considering.