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Build Your Own Mutual Fund

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  • Description

    Steven Wallman of FolioFN discusses how his company allows investors to better manage their funds.

  • Duration 4:41
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Was nothing uncertainty in the markets may be leading more investors to want more control over that hopefully -- doesn't but really listen to what one company is doing that's called Foleo FN investments.

It allows you the investor to what they would say inexpensively build your own mutual fund customize it.

But designing a purchase online the founder of folio investing Steven Waldman joins us now.

We love this story but they're looking at it how do you allow investors.

To create their own investment funds -- mutual funds -- -- -- -- -- -- Years ago I let -- SEC the securities exchange commission with one mission which rose to.

Enable investors in those who serve them like registered investment -- -- the opportunity to invest in a better way and that thought was to trade diversified portfolios that can be customized individualized.

For the investor who is using.

And so we sought out to create a platform or brokerage that could do that and we built a whole new -- platform a whole new brokerage from scratch.

Based on the five principles ever thought -- most important.

The first is diversification.

-- second was customization is discussed.

The third was he noted to reduce all cost effectively because it's too expensive then you simply can't actually Europe.

The fourth was to make sure the people could invest consistently and to do it in a way that would start to overcome.

Some of -- behavioral finance issues that we saw where you're forward would panic or not they -- in their investing.

And a -- of course is to be tax aware.

And we've sought to build that platform and we succeeded we've had -- -- for a dozen years.

And it has done a lot of good we think encouraging investors to invest better.

So -- we -- is he really -- of the question I was gonna ask you the advantage of using up this particular.

Method because you know retail investors they already picked the stocks they want all the sectors they want so.

Why should they use -- company.

We we enable what we're the only platform that allows people to trade truly diversified portfolios to.

Didn't invest -- where that -- intelligent some people said over the last -- years that diversification.

Failed.

That it didn't succeed -- limiting people's downside risks that it didn't do the things that promised to do.

In fact what we discovered is that diversification hasn't -- -- -- people don't diversify very well.

In part that's because of costs in part that's because they don't have the tools to do well and so we set.

-- -- What I'm really just on -- know how much this costs if I come up and I want to duplicate Starbucks type you know mail order to Starbucks all have a tall skim half -- double shot have sugar in the broader -- cup whatever.

I read it let's say about that -- -- super emerging markets value slash growth dividend fund.

-- -- -- -- -- -- Create.

This may sound better than it really can be but it's one and -- dollars a month is.

An unlimited our hearts are -- of plaque we -- the -- live unlimited plans and what's amazing about it is you can invest in as many counts as you -- entire day.

Personal account joint account.

You can invest in as many portfolios as you want which you can trade on your own or you can use any of our 170 or so ready to go portfolios and customize their own modify them anywhere US.

And you could trade as many times as you -- and so on our patent platform you can actually rebalance.

Add to subtract from sell part of -- our portfolios do whatever you would like to do -- all 29 dollars -- And you say when he most popular portfolios.

Is the what's called a target date -- -- for retirement investing -- does that work.

We've -- here -- about a half a dozen years ago the concept.

-- better way to have a target date portfolio.

We looked around at the targeted mutual funds ever in the marketplace.

And we thought they were not as well diversified as they ought to be we also didn't think that they were looking at risk as opposed to sort of an -- allocation glide path.

So we created a whole new set of portfolios we have 33 -- on the platform.

That range from conservative ones to moderate to -- -- ones.

And every five years in terms of target retirement dates so if you're gonna retire in -- 20/20 five.

And you're relatively conservative in terms of the investments are in the best for you.

We have a -- 25 target date conservative provide some tests of the company by the way is Foleo FN Steven Waldman is the founder thank you so much for joining us.

Things -- much appreciate the time.

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