A robo-advisor uses algorithms rather than human brainpower to monitor and evaluate investment trends. The service then makes an investment recommendation based on the client’s portfolio preferences.
Now that you get the gist of it let’s get back to QuietGrowth. In this article, we shall review QuietGrowth – one of the popular and leading robo-advisor. Let’s get started.
What’s QuietGrowth?
QuietGrowth is a robo advice online platform that makes investments that measure up to your risk tolerance and financial goals on your behalf. The platform was founded in 2014, and its leading executives are Dilip Sankarreddy & Krupakar Chinnasani.
QG’s investment portfolio is composed of 8 low-cost passive Exchange Traded Funds that are spread across six asset classes. QuietGrowth offers four different accounts i.e. Individual, Trust, SMSF, and Joint.
So long as you meet the eligibility criteria (we shall get to that in a minute), you can get started today with an investment fund as low as $2,000. For the optimized returns, QuietGrowth charges you a small service fee.
Robo-advisors have gained immense popularity in the US and other countries. In terms of advancement, QuietGrowth is among the leading robo advisor in Australia. It is your go-to financial advisor if you prefer automated investments or can’t afford a financial manager.
Is it available in Australia?
QuietGrowth is based in Sydney, New South Wales. Its services are available to investors (including individual investors), brokers, managed accounts, and also investment clubs. QG also offers individually tailored advice to its clients besides managing funds.
Sign-up process
First, you need to choose the account type that you will be using. The account types offered are: Individual, Joint, SMSF and Trust.
To get started, visit QuietGrowth’s website using your computer or phone. You will see a conspicuous ‘Evaluate your risk’ brown option at the top right-hand side of the homepage.
Clicking on it will redirect to a new menu. You will be prompted with the four different options to choose from.
The Individual account, you will be independently investing by yourself. The joint account is primarily for couples that want to invest in a single account. The SMSF account supports either you (individually) or you and your partner to invest through a self-managed super fund. The Trust account works just like the SMSF account, except you will be investing through a trust.
For individual and joint accounts, you will be required to provide a W-BEN form. The other two require a W-8BEN-E form.
Depending on the type of account you choose, you will be asked a number of questions. They are meant to assess and determine your risk tolerance.
These questions include your age, annual income, annual savings, the value of your investments (cash and liquid), and liabilities as well, the projection of your income, and your investment preference in terms of gain or loss.
You will also be asked a question on how you will play a situation where your investment loses its value. Based on your answers, QG will calculate your risk tolerance and present you with your diversified portfolio.
At this point, you will be provided with the Create Account option. Fill in your details (including the referral code if you have one) and then submit your application. Other details you will be required to provide are your contact information, residential & email address, tax file number, and birth date.
Saxo Capital Market holds the investment amount you fund into your account in an account operated by the HSBC Bank. The SCM venture is QuietGrowth’s partner. All the clients’ funds are pooled together, albeit one client’s funds can’t be used to level out the loss of a different client.
Can you open multiple accounts?
At QuietGrowth, you are at liberty to open as many accounts as you wish, provided you meet the minimum deposit amount for each of the accounts. Note that you don’t incur any charges for the initial $10,000 portfolio value of the first portfolio. This only applies to the first QuietGrowth account.
Deposits
QuietGrowth supports several funding methods i.e.
- Electronic Funds Transfer
- BPAY
- Direct debit
- Cheque
Withdrawal
There’s no restriction on when you can withdraw your funds. Withdrawals are made via the website, and you will be required to avail the signed withdrawal form. Generally, withdrawals take about 2 to 5 days to be processed.
The minimum amount you can withdraw is $3,000 whilst maintaining the threshold portfolio value of $3,000.
Fees charged
Below is QuietGrowth’s fee breakdown:
- First $10,000 – Free
- $10,001 to $30,000 – 0.6%
- $30,001 to $200,000 – 0.5%s
- $200,001 and above – 0.4%
All the rates are charged annually.
You are not charged any other fees i.e. contract, registration, advisory, or brokerage contract.
Investment Methodology
The investment methodology complementing QuietGrowth’s algorithm is robust. By dint of Dilip’s association with The University of Chicago, the platform observes adherence to the Chicago School of Thoughts. Here is a breakdown of the platform’s investment approach:
- A risk assessment to determine the client’s risk tolerance
- Evaluation of the different asset classes
- Finding the optimal and suitable mix of the asset classes
- Determination of the befitting Exchange Traded Funds for the chosen asset classes
- Building a personalized portfolio while keeping in mind the client’s risk tolerance
- Continuous management of the constructed portfolio
Most people often ask how QuietGrowth determines the ETFs to sell when you request a withdrawal. Well, QuietGrowth will sell ETFs based on a criterion that minimizes tax liability and rebalances your portfolio.
How many portfolios does QuietGrowth offer?
The platform provides five low to high-risk portfolios. Your funds are invested by acquiring a stake in the 8 ETFs offered. The ETFs are spread across six asset classes i.e. Shares, International Developed & Emerging Market Shares, Dividend Shares, Bonds, and Natural Resources.
Can you select your own EFTs to invest in?
QuietGrowth limits you when it comes to ETFs you can invest in. It restricts you to a specific EFTs range.
Besides, QuietGrowth has a mobile application for both iOS and Android users on the respective stores for convenience purposes.
Customer Support
To get in touch with QuietGrowth either for registration, inquiries, or complaints, you can go to their website. Alternatively, you can use other social platforms such as LinkedIn, Twitter, or Facebook.
On the website, you will find a comprehensive FAQ section that is very useful. You are likely to get the solutions to your issues here without any hassle.
What are the best alternatives?
The best alternatives to QuietGrowth locally are Six Park, Stockspot, and Republic Capital. All three are based in Australia. Six Park was founded in 2014 and is headquartered in Melbourne.
Stockspot was founded a year before QuietGrowth but is also based in Sydney. Republic was founded in 2014 and is based in Miller Point.
Is QuietGrowth safe?
The online platform is an authorized representative of the HLK Group. The group holds an Australian Financial Services License (No. 435746).
Conclusion
Robo-advisors have proven to be quite effective to many. QuietGrowth, for instance, is ideal for any investor looking to leverage automated investment benefits. The low fees and array of features are a great appeal to both rookies and experienced investors.
