How to Start Investing in a Bear Market

The immediate outlook is grim, but low-cost funds that track the entire market can help you prosper over the long term, our columnist says.

#asset-allocation-personal-finances, #content-type-service, #mutual-funds, #savings, #stocks-and-bonds

How Inflation Is Affecting Money Market Funds

At last, interest rates for money market funds have started to rise. But inflation means that in real terms, you’re still losing money.

#content-type-service, #crane-peter-g, #federal-open-market-committee, #federal-reserve-system, #inflation-economics, #interest-rates, #money-market-mutual-funds, #mutual-funds, #savings, #t-rowe-price-group-inc

Stock Market Declines Can Help Long-term Investors

Is this is a good time to buy stocks, readers ask? Yes, our columnist says, but only if you can handle further losses and don’t try to outsmart the market.

#content-type-service, #index-funds, #investing, #mutual-funds, #standardpoors-500-stock-index, #stocks-and-bonds

Tax Troubles for Some Investors in Vanguard’s Target Date Funds 

Retirement investments that are fine in tax-sheltered accounts can generate big headaches without that protection. Vanguard’s target date funds are a case in point.

#asset-allocation-personal-finances, #capital-gains-tax, #content-type-service, #federal-taxes-us, #income-tax, #mutual-funds, #pensions-and-retirement-plans, #stocks-and-bonds, #vanguard-group-inc

Edward C. Johnson III, 91, Dies; Made Fidelity an Investment Giant

Mr. Johnson’s exceptionally long tenure — he presided over Fidelity into his 80s — coincided with a huge expansion of his industry.

#boston-mass, #deaths-obituaries, #fidelity-investments, #johnson-edward-c-iii, #mutual-funds, #pensions-and-retirement-plans, #stocks-and-bonds

How to Survive When Stocks Behave Badly

The stock market’s swings have been startling. Unfortunately, it’s wise to prepare for much worse.

#asset-allocation-personal-finances, #content-type-service, #morningstar-inc, #mutual-funds, #standardpoors-500-stock-index, #stocks-and-bonds, #vanguard-group-inc

Stock Investing in Retirement for Those Able to Bear the Risk

Stocks and bonds are core investments. Now, Vanguard is suggesting that retirees willing and able to bear the risk may want a stock target of 50 percent.

#asset-allocation-personal-finances, #content-type-service, #mutual-funds, #pensions-and-retirement-plans, #personal-finances, #stocks-and-bonds, #vanguard-group-inc

Stock Market Faces Lingering Perils in 2022

Inflation and the coronavirus did not hold back the stock market last year, but in 2022, investors face new worries.

#asset-allocation-personal-finances, #content-type-service, #coronavirus-omicron-variant, #federal-reserve-system, #interest-rates, #mutual-funds, #standardpoors-500-stock-index, #stocks-and-bonds

Why Stock Investors Need to Look a Decade Ahead, at Lea

In this season for forecasts and resolutions, investors will be better off if they are able to think 10 or more years ahead, our columnist says.

#asset-allocation-personal-finances, #content-type-service, #financial-brokers, #leuthold-group, #mutual-funds, #stocks-and-bonds, #vanguard-group-inc

Buy Stocks to Prosper. Buy Bonds to Sleep at Night.

Do what it takes to stay invested in the stock market, our columnist says. Government bonds may help, even if they look unappealing now.

#asset-allocation-personal-finances, #consumer-price-index, #content-type-service, #government-bonds, #inflation-economics, #mutual-funds, #standardpoors-500-stock-index, #stocks-and-bonds

Invest Well by Keeping Things Simple

You don’t need a lot of mutual funds or exchange-traded funds to build a solid portfolio.

#asset-allocation-personal-finances, #content-type-service, #credit-and-debt, #mutual-funds, #stocks-and-bonds

Economic and Earnings Concerns Begin to Weigh on Stocks

After having few cares about the markets all year, investors are getting nervous as the Fed signals that harsher policies are on the way.

#company-reports, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-reserve-system, #mutual-funds, #stimulus-economic, #stocks-and-bonds, #united-states-economy

Kaszek Ventures leads a $15 million round in Chilean asset management startup, Fintual

Like other financial sectors in Latin America, the retail investing space is getting a facelift by local tech startups that are cashing in on the untapped potential for democratizing asset management in the region. One of those startups is Chilean-based Fintual, which today announced a $15 million round led by Kaszek Ventures, the largest fund in Latin America.

Fintual is an automated passive investment platform that allows the average person in Chile or Mexico to invest in mutual funds containing ETFs (Exchange Traded Funds), investment vehicles that aren’t as well known, or as readily accessible in Latin America.

“The idea that got to me was that we were allowing people to invest in the long term, we enable them to invest in instruments they didn’t have access to before,” said Pedro Pineda, co-founder and CEO of Fintual.

Before starting Fintual in 2018 with his three co-founders, Pineda was an astronomer and an entrepreneur, who built and sold a Groupon copycat company in Chile called “Queremos Descuentos” (We Want Discounts) for just over $1 million when he was 28. 

After the exit, he admits he was a bit lost in life. 

“One day I decided that I wanted to do only the things that I wanted to do and with the people I wanted to do it with,” he said.

He traveled for a couple of years, and learned to code, among other things, until Omar Larré, Fintual’s current CIO, presented him with the idea for the business. 

Larré had been a portfolio manager at Banco Itau, Brazil’s biggest bank by total assets, and he saw the gap in the market: investing was not set up for the average person. The annual fees were too high, the minimum amount required to invest was too high, and there was a penalty when you removed your money. Additionally, the transaction takes a certain amount of financial know-how that most people don’t possess.

For Pineda, disrupting the financial sector also seemed like a lot of fun, he thought.

“I liked the idea of challenging the financial banks, and you can’t do that without technology. We have this super tool that my parents didn’t have, and you can disrupt an entire industry,” Pineda told TechCrunch.

While traditional mutual funds in Chile and Mexico charge up to 6.45% and 5% annually, Fintual charges 1% annually of assets managed. Additionally, Fintual doesn’t require a minimum investment nor a minimum amount of time invested, and users can take their money out any time with no penalties. 

“It’s different than the U.S.; we invest way less than you do; by a factor of 10 maybe,” Pineda said, comparing the investment rate in Chile.

In 2018, the company was accepted into Y Combinator and became the first Chilean startup to go through the prestigious accelerator. It has been growing exponentially ever since and today it serves 57,000 clients in Chile and Mexico.

Below is a table that shows their growth including money managed and percent growth each year since launch.

Assets Under Management (USD)* Annual Growth
May 2018              1.2 M
May 2019              12.9 M 1075%
May 2020               87.6 M 679%
May 2021               480.7 m 548%

    *Each figure corresponds to the end of each month.

The current raise will be used to grow the company’s operations in Mexico, expand to other countries — namely Colombia and Peru — and grow its tech team. 

In addition to Kaszek, other investors to date include YC, ALLVP, and angel investors such as Plaid’s CTO, Jean-Denis Greze, and Cornershop’s founder Oskar Hjertonsson. To date, the company has raised about $15.2 million.

Fintual’s impressive growth speaks for itself, but Kaszek’s co-founder and managing partner, Nicolas Szekasy, said the fund has been following Fintual since its early days, and he was impressed with the niche market the team identified and even more impressed with the user experience the company had developed which has, in turn, fueled its growth.

#apps, #asset-management, #bank, #chile, #colombia, #cto, #finance, #funding, #fundings-exits, #groupon, #investment, #investment-fund, #kaszek-ventures, #latin-america, #mexico, #mutual-funds, #peru, #plaid, #startup-company, #startups, #united-states, #venture-capital, #y-combinator

A Glimpse of a Future With True Shareholder Democracy

Big stock funds own increasingly large chunks of publicly traded companies, leaving fund shareholders without a vote on corporate governance. But there’s a better way.

#as-you-sow, #boards-of-directors, #coates-john-c-iv, #conflicts-of-interest, #gensler-gary-s, #mutual-funds, #regulation-and-deregulation-of-industry, #securities-and-exchange-commission, #shareholder-rights-and-activism

Money Market Funds Melted in Pandemic Panic. Now They’re Under Scrutiny.

In March 2020, the Federal Reserve had to step in to save the mutual funds, which seem safe until there’s a crisis. Regulation may be coming.

#banking-and-financial-institutions, #commercial-paper-finance, #coronavirus-2019-ncov, #federal-reserve-system, #financial-stability-oversight-council, #money-market-mutual-funds, #mutual-funds, #presidential-election-of-2020, #regulation-and-deregulation-of-industry, #securities-and-exchange-commission, #yellen-janet-l

Investing Made Simple for Beginners and Everyone Else

Managing your money for the long run can be easier than you might imagine.

#asset-allocation-personal-finances, #content-type-service, #financial-planners, #mutual-funds, #pensions-and-retirement-plans, #personal-finances, #stocks-and-bonds

How to Win at the Stock Market by Being Lazy

The drama of GameStop is misleading; the surer path to wealth is extremely boring.

#content-type-service, #gamestop-corporation, #mutual-funds, #personal-finances, #savings, #stocks-and-bonds, #vanguard-group-inc

How to Be a Better Investor: Do Nothing

Once you have set up your stock and bond portfolio, avoiding further action is the most important and also the hardest task, our columnist says.

#asset-allocation-personal-finances, #content-type-service, #gambling, #mutual-funds, #stocks-and-bonds

Time to Take a Pledge: No Stocks if You’re a Member of Congress

Owning actively traded shares can create conflicts of interest. Georgia’s Senate candidates agree. Will others? Mutual funds could be good for them.

#conflicts-of-interest, #content-type-service, #elections-senate, #georgia, #house-of-representatives, #loeffler-kelly-l, #mutual-funds, #ossoff-jon, #perdue-david-a-jr, #senate, #stocks-and-bonds, #united-states-politics-and-government, #warnock-raphael-g

How to Hold Onto Your Money, Wherever the Market Takes You

Crises abound, yet stocks have generated strong returns. Investors had better be ready for anything.

#exchange-traded-funds, #income, #interest-rates, #money-market-accounts, #mutual-funds, #standardpoors-500-stock-index, #stocks-and-bonds

At a Time of Financial Stress, 401(k) Fees Matter More Than Ever

These expenses always eat away at savings balances, but as the pandemic drags on, savers should be especially aware of how to keep them down.

#401k-403b-and-457-plans, #calculators, #content-type-service, #mutual-funds, #pensions-and-retirement-plans, #personal-finances, #prices-fares-fees-and-rates, #retirement, #stocks-and-bonds

Can These Markets Be Trusted?

After a calamitous drop in March, the stock market has had a ferocious rally, despite a cascade of awful news. How can investors cope?

#mutual-funds, #standardpoors-500-stock-index, #stocks-and-bonds

You Now Get Almost Nothing for Your Money, but It Could Be Worse

In this crisis, money is priceless, yet banks and money market funds will pay you close to zero in interest for years. That’s if everything turns out well.

#asset-allocation-personal-finances, #banking-and-financial-institutions, #blackrock-inc, #crane-peter-g, #credit-and-debt, #federal-deposit-insurance-corp, #federal-reserve-system, #fidelity-investments, #finances, #interest-rates, #money-market-accounts, #mutual-funds, #nonprofit-organizations, #pensions-and-retirement-plans, #prices-fares-fees-and-rates, #regulation-and-deregulation-of-industry, #stocks-and-bonds, #subprime-mortgage-crisis, #t-rowe-price-group-inc, #vanguard-group-inc

A Big, Once-Reliable Source of Investor Cash Is Drying Up

The losses aren’t coming just from the drop in stock prices. The effect of the dividend cuts sweeping through the market will hurt, too.

#banking-and-financial-institutions, #buffett-warren-e, #coronavirus-2019-ncov, #corporations, #economics-theory-and-philosophy, #mutual-funds, #private-equity, #quarantines, #recession-and-depression, #siegel-jeremy-j, #standardpoors-500-stock-index, #stock-buybacks, #stocks-and-bonds, #thaler-richard-h, #yardeni-edward

How to Survive the Coronavirus Markets

One of the worst stretches in market history has included one of the most rapid stock rallies. How can investors get through this ordeal?

#coronavirus-2019-ncov, #mutual-funds, #stocks-and-bonds