Micro-investing app Acorns Australia has reached $100 million in funds under management, the company behind the app claims.
A statement said the app now had more than 300,000 users in Australia following its launch in February 2016.
The Australian business, Acorns Grow Australia, is a joint venture between Acorns Grow of the US and Instreet Investment and was set up in March 2015.
The app allows users to invest their small change in the stock market. It charges a monthly subscription fee of $1.25.
{loadposition sam08}Over the last year, the app has added features like My Finances, which allows users to track spending habits, and the Emerald Portfolio, which provides a sustainable investment option.
George Lucas, managing director, Acorns Grow Australia, said, “At Acorns Australia, we continue to listen to our users and consistently add new features to respond to their needs.
"This breadth of new tools, which provide a holistic overview of each individual’s financial journey, has driven rapid adoption of our app in the 18 months since our launch.
"We’re proud to be celebrating this milestone of $100 million FUM as it speaks to the impact Acorns is having on the lives of everyday Australians."
Acorns does not charge any brokerage fees and the smallest minimum investment amounts is low. Costs are kept low because of the volume of people who use the app.
Lucas said, “We are a customer-focused business and it’s because of our 300,000 strong Acorns community that we have been able to provide a service with zero transaction, switching or brokerage fees and keep our minimum investment extremely low. In turn, this creates greater access for all, democratising the power of wise investments.”
The statement said the steady growth in users and FUM had been largely driven by millennials.
It claimed that since inception, the average Acorns user had made 10.5% per annum (end of July 2017) on their investment after fees but before the $1.25 monthly subscription fee.