Their secret involves implementing a sophisticated asset allocation strategy with a globally diversified portfolio, cutting trading fees and rebalancing their portfolios regularly. Because they don't buy and sell assets all day round, they save on trading fees trying to get an extra 0.3% in profit.
Notifinio applies this approach.
Protect Your Portfolio
Applying asset allocation to diversify your portfolio gives protection for your hard-earned money. Relying on hedge-fund managers comes with a cost that it might not help to reach your investment goals.
Mainly because of the fees they charge, these active managers fall tragically short of the index they compete against. Within ten years, over 90% of actively managed money underperform the market index like S&P500.
And more dangerous for you, these management fees mean the difference between your retirement in richness or living in a shelter.
The study shows you're probably paying 3% of all your money every year. Investment funds charge their clients about 1.35% on average per annum. If you use an investment advisor, add another 1% to 1.5% a year. Finally, do you see how these fees affect your investment portfolio balance?
Notifinio is constructed to use low-cost and tax-efficient exchange-traded funds (ETFs) that have average annual fees of 0.2%. You might not think that's a big difference. But here's how big it is. Take a $100,000 portfolio. Using the long-term average growth of stock and bond portfolio of 8% a year, compounding your gains over 20 years, and deducting the 3% in fees, you'd have $265,329. But if your fees were 0.2% instead of 3%, you would have $449,133 and it gives us $183,804 difference. All based upon a tiny difference in fees and taxes of 2.8%.
According to the 2018 Investment Company Fact Book Fund Expenses & Fees
Successful investors don't "buy and hold" and wait when their investment return sky-rocket, but what they do it follow the rule "buy low and sell high".
It's called rebalancing. Until the Robo-advisor era, rebalancing technology was available to high wealthy investors who could afford systems in the tens of thousands of dollars. Notifinio makes rebalancing easy for you. We monitor your portfolio 24 by 7 on what to buy and sell to realign with your target percentages to keep you on track achieving your investment goal and maximize your returns.
Extensive back-testing of our robo-advisor portfolios shows that on average, our rebalancing algorithms can add between 0.83% and 1.43% to your annual returns.