Raiz Invest has announced that it will officially launch its superannuation product on July 16 through integration of the superannuation feature into the existing Raiz app.
Raiz Invest managing director, George Lucas, said the new feature will give users an easy and price-competitive way to invest and build wealth for their future.
Raiz Invest Super will charge a fee of about $425 on balances of $50,000 to account holders on an annual basis, placing it in the bottom 25 per cent or lowest quartile for accumulation superannuation funds on the market.
With a customer base of more than 160,000, skewing towards the under 35-year demographic, Raiz said its average user has seen their investment portfolio grow by 10 per cent a year in the past 12 months and 11 per cent a year since inception in February 2016, inclusive of all fees bar the $1.25 a month maintenance fee.
This is $110 a year on an average balance of $1,250 after the maintenance fee, the company said.
Lucas said that by expanding on its mobile first micro-investing platform, customers have found growing savings in small increments and achieving financial confidence does not have to be a complicated or daunting process.
“The Raiz app was designed first and foremost as a savings and investment tool, empowering the millennial generation and all Australians to improve their financial confidence and literacy,” he said.
“We also recognise that fees, and individuals having multiple super funds charging a portion of flat fees, has been flagged by the Productivity Commission.
“By providing a low-fee fund, we’re giving our account holders the opportunity to review and manage their investments and future securely, directly and consistently from their mobile.”