Why would I put my money here rather than robinhood.io, which is FINRA accredited, free, and has top tier investors?
This needs way better transparency
Staygg - new app lets you invest small amounts of money for free
11–20 of 24 posts
Re: Staygg - new app lets you invest small amounts of money for free
#12Finally it's here, the official Ponzi app. But seriously - What exactly am I buying? Where are the details of the indexed fund? No charges, how does that work? Don't these people need to pay brokerage fees? I'm highly suspicious.
My guess: they are eating the management fees on an indexed fund that they are just managing themselves. With enough volume they can offer other fee-ful funds like the other guys and cover the costs. It's just a loss leader. I'm assuming it's not a Ponzi scheme, but obviously could be wrong. If everything is up-and-up this is actually kind of cool. I've been disappointed at the lack of decent investment options for l…
Some Vanguard index funds have a $1000 minimum and you don't have to risk your money with a (frankly) sketchy investment like this.
Re: Staygg - new app lets you invest small amounts of money for free
#13I hate to be the naysayer, but NOBODY SHOULD USE THIS.
If you don't have a lot of money, open a Vanguard account and forget about it. If you don't have the $1000 to set up a Vanguard account, put your money in an FDIC-insured bank account. Seriously, if you don't have $1000 to invest you are MUCH better minimizing effort and risk than trying to make an extra 5% on your money (that's less than $50 per year).
Also, nobody should "invest" in any app that makes you pay to hide the ads.
Re: Staygg - new app lets you invest small amounts of money for free
#14- Fees are hidden, nothing is "free"
- The time from when you pay until you own the shares is hidden
The time from when you "sell" until you have the money again is hidden
- They "aim" to replicate the S&P500 but then they can differ. How much and how often.
- All risk and volatility is hidden
- Security of computer systems. They seem to be brilliant math guys with little computer security experience at all. Bitcoin syndrome.
Re: Staygg - new app lets you invest small amounts of money for free
#15It makes me a bit nauseous whenever I read or hear that somebody wants to outperform the market with an actively managed fund that is resembling an index fund. Like draugadrotten writes, such an endeavor can't be free.
The rule of thumb for the targeted audience of such a startup should be exactly the opposite. To never pay someone to actively manage their portfolio that is.
"Data from recent decades demonstrates that the majority of actively managed large and mid-cap stock funds in United States fail to outperform their passive stock index counterparts."[0]
Edit:
No, seriously. What the kids they are targeting need is to learn to manage their personal finances[1] and invest very early in very boring things. With a very simple and boring strategy that takes a couple hours a year[2].
Most fund managers are essentially useless[3] and according to numerous studies very seldom outperform the market. Unless you have millions in spare change to give away to someone who gambles with your money, stay away from them.
[0] http://en.wikipedia.org/wiki/Active_management#Disadvantages...
[1] http://www.reddit.com/r/personalfinance/wiki/index
Re: Staygg - new app lets you invest small amounts of money for free
#16It makes me a bit nauseous whenever I read or hear that somebody wants to outperform the market with an actively managed fund that is resembling an index fund. Like draugadrotten writes, such an endeavor can't be free. The rule of thumb for the targeted audience of such a startup should be exactly the opposite. To never pay someone to actively manage their portfolio that is. "Data from recent decades demonstrates tha…
I don't think it is promising to outperform the market at all
"Our fund aims to replicate the returns of the S&P 500."
Re: Staygg - new app lets you invest small amounts of money for free
#17It makes me a bit nauseous whenever I read or hear that somebody wants to outperform the market with an actively managed fund that is resembling an index fund. Like draugadrotten writes, such an endeavor can't be free. The rule of thumb for the targeted audience of such a startup should be exactly the opposite. To never pay someone to actively manage their portfolio that is. "Data from recent decades demonstrates tha…
I don't think it is promising to outperform the market at all "Our fund aims to replicate the returns of the S&P 500."
Doing that reliably over a meaningful period of time is the problem. In my book (from the perspective of an investor) you'd need to "outperform?" the index to cover the costs of frequent trades and potential losses at no actual cost to the investor.
Re: Staygg - new app lets you invest small amounts of money for free
#18Earlier quoted context omitted.
My guess: they are eating the management fees on an indexed fund that they are just managing themselves. With enough volume they can offer other fee-ful funds like the other guys and cover the costs. It's just a loss leader. I'm assuming it's not a Ponzi scheme, but obviously could be wrong. If everything is up-and-up this is actually kind of cool. I've been disappointed at the lack of decent investment options for l…
Some Vanguard index funds have a $1000 minimum and you don't have to risk your money with a (frankly) sketchy investment like this.
You can also buy them on the stock exchange for less than $10 in transaction fee, and I think the minimum there is a lot less than $1000.
Re: Staygg - new app lets you invest small amounts of money for free
#19I honestly can't imagine any level-headed investor trusting any amount of money to a bunch of recently-graduated economics majors through an iPhone app.
At least they used vanilla Bootstrap for their website.
Re: Staygg - new app lets you invest small amounts of money for free
#20It makes me a bit nauseous whenever I read or hear that somebody wants to outperform the market with an actively managed fund that is resembling an index fund. Like draugadrotten writes, such an endeavor can't be free. The rule of thumb for the targeted audience of such a startup should be exactly the opposite. To never pay someone to actively manage their portfolio that is. "Data from recent decades demonstrates tha…
"somebody wants to outperform the market with an actively managed fund that is resembling an index fund"
It sounds like you don't know what these words mean.