Weak savings rates and strong share market performance have created ideal growth conditions for ASX-listed micro-investing platform Raiz, according Cyan Investment Management’s Dean Fergie.
Speaking on Reach Markets’ fortnightly ‘The Insider: Meet the Fund Manager’ webcast in March 2021, Mr Fergie said the business is poised to benefit from an influx of new investors seeking to grow their wealth at a time when traditional options aren’t yielding much.
“We’ve got extremely low interest rates where nobody is getting any return whatsoever leaving their money in the bank. We’ve seen markets perform quite strongly. And people like to see their wealth growing,” he said.
Mr Fergie noted the business appears to be undervalued and very attractive under these market conditions.
Raiz can be downloaded as an app to either an Apple or Android phone and allow users to start investing with a small portfolio, and also offers rewards programs whereby a small portion of each purchase made with certain brands is reinvested into a user’s portfolio.
The platform is proving popular with young, tech-savvy people keen to start their investment journey. Providing a simple and relatively low risk opportunity to learn to invest, Raiz is the first investment experience for two-thirds of their customer base.
“It’s a fantastic way to save money, build an investment portfolio, and not surprisingly, it’s creating some real traction in the market,” said Dean.
After being featured on Today Tonight and Current Affair, Raiz saw a major spike in their numbers. Raiz now has around 300,000 active users in Australia with the average portfolio valued at $2,000.
The company is now expanding into Asia, with rollout currently happening in Malaysia, Indonesia, and Thailand.
“All of the numbers are going in the right direction, including the share price,” said Dean.
Raiz is now through the $100 million market cap barrier. The company is also achieving cash break even.
“We think it’s an investment that investors are well worth casting an eye over,” concluded Dean.
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