Syfe’s Smart Baskets help investors tap into professionally constructed investments with ease and without the hefty price-tag. Pic via Getty Images.
Tech
New Smart Basket product from Australian investment platform Syfe, offers investors an effortless way to diversify their portfolios with professionally built collections of exchange traded funds (ETFs) and stocks.
Founded in 2019 with the aim of democratising finance, Syfe now operates across three countries and is trusted by over 100,000+ global investors actively growing their wealth.
Syfe gives Australian investors access to 12,000+ US and Aussie stocks, leading ETFs, as well as pro-built Smart Baskets. With a focus on low cost brokerage, Syfe investors can buy US stocks for US$1.49 per trade and Aussie stocks from A$4.99 per trade.
Beyond the basics, Syfe gives investors access to the markets & tools to help them achieve their financial goals, ranging from free analyst insights, flexible trading, including the ability to invest in 1,000+ Aussie shares from just 1 share, as well as a powerful recurring buys feature that lets individuals invest on autopilot.
Since entering the Australian market, Syfe observed one core issue emerging again and again. Australian investors not only had a lack of time to devote to investing, but they also had little direction as to where they could possibly start investing or invest next.
As Syfe Australia’s General Manager, Tim Wallace puts it: “For many would-be investors, the prospect of constructing a portfolio from scratch can be daunting and time-consuming.”
“The intricate nuances of market research and asset allocation can deter individuals from entering the investment arena.”
Indeed, while the prospect of spending hours researching individual stocks and ETFs might be thrilling to some, for many it’s yet another barrier to making good, long term financial decisions.
That formed part of the spark behind Syfe’s recently launched Smart Basket product.
Mr. Wallace was a driving force behind the creation of Smart Baskets, working closely with Syfe’s Head of Investments and Advisory, Ritesh Ganeriwal, as well as Syfe’s team of engineers and designers, to bring the project to life.
The goal was simple: build a product to help Australians easily and cheaply access professionally built, ready made investments.
Ritesh and his team of quants spent 1,000+ hours designing the framework behind the Smart Baskets themselves, so investors wouldn’t have to spend hours on end trying to find their next investment.
An ex-Goldman banker himself, Ritesh has significant experience helping high net worth individuals employ sophisticated investment strategies to grow their wealth. Smart Baskets bring those experiences into the hands of everyday investors, with Ritesh and his team poring over the composition and asset allocation of each of the 14 baskets, aimed at delivering maximal risk adjusted returns to investors.
“By eliminating the need for extensive research and analysis, Syfe’s Smart Baskets present an attractive option for those seeking a simplified yet effective investment strategy,” said Wallace.
Syfe’s Smart Baskets address the core challenge of building a portfolio head-on by offering its customers the ability to filter and explore a diverse range of 14 expertly constructed investment baskets.
“Investors can effortlessly browse through each Smart Basket, gaining invaluable insights into its historical performance, composition, and dividend yield,” Wallace said.
Whether it’s a growth-centric basket, like Syfe’s High Growth basket that could help investors tap into new growth opportunities, or the increasingly popular High Dividends basket to help investors earn passive income on the side, the choice is ultimately up to the individual.
“This approach empowers individuals to make informed investment decisions without the burdensome task of extensive research,” Wallace said.
Wallace said Syfe’s Smart Baskets bridges the gap between novice investors and seasoned professionals, democratising access to sophisticated investment strategies.
“Whether an individual is a seasoned market participant or someone who is just embarking on their investment journey, Smart Baskets offer an opportunity to benefit from the expertise of wealth professionals without the need for in-depth financial knowledge,” he said.
“By simplifying the investment process, Syfe is poised to improve the way individuals construct and manage their portfolios, unlocking the untapped potential in every investor.”
Wallace said when considering investing in a Smart Basket an investor should carefully evaluate their time horizon, risk tolerance, and investment style preferences. That’s where Syfe’s optional filters really get a chance to shine.
Syfe’s optional filters enable investors to choose between short-term and long-term time horizons, ranging from one year to 10 years.
“Generally, shorter time horizons involve lower risk tolerance, while longer time horizons allow for higher risk investments,” he said.
Wallace said Syfe offers Smart Baskets categorised as low, moderate, or high risk to accommodate different risk appetites.
“For instance, individuals saving up for short-term goals, such as purchasing an engagement ring, might prefer a Smart Basket with a shorter time horizon and lower risk, such as the Stable Dividends Basket.”
Wallace went on to stress that the psychological impact of short-term volatility shouldn’t be overlooked, noting that over the short term, assets like stocks and ETFs “can exhibit significant volatility”.
“For investors with short-term goals, such volatility can be detrimental, potentially leading to suboptimal investment decisions or outright mistakes.”
“On the other hand, investors planning for retirement, with a longer investment horizon, can afford to take on higher risks and prioritise growth investments because they can ride out the market volatility.”
“For the long term focused investor volatility shouldn’t represent risk,” said Wallace “but opportunity”.
Across their Smart Basket products Wallace added that as markets have roared back to life in 2023 “we’ve already seen a lot of interest in our high growth baskets, which are focused on delivering investors solid risk-adjusted returns, over the long term.”
The views, information, or opinions expressed in the interviews in this article are solely those of the interviewees and do not represent the views of Stockhead.
Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.
This article was developed in collaboration with Syfe, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
