An Australian social media startup has launched a $1bn, socially responsible investing account with a target of providing equity to those in need.
The firm, called Insta-Ameritrades, aims to bring a new level of transparency to investing, with a focus on empowering people to make informed decisions about their investments.
In a video posted to the company’s Facebook page, InstaAmeritiks chief executive and co-founder, Andrew Farr, explains the company aims to provide investors with “a safe, secure, and transparent platform to make investments for those in poverty”.
“For many Australians, the idea of a social investment account is something they may never have heard of,” he says.
“It’s about giving people an avenue to make a fair return for their hard-earned dollars.”
While it’s easy to put a target on the backs of people in poverty, the reality is most people do not understand how to properly invest their money.
The average investor today has no idea how to invest, because they don’t have a clue what they are investing in, or even what the underlying values of the assets they are buying.
“Investors don’t realise that the value of a product they’re buying could be worth more than the price of that product, or the cost of the product,” Mr Farr says.
So, the firm aims to create a safe, efficient and transparent investment platform that will help to educate investors about the value they are getting out of their investment, and help people make better decisions.
The platform is designed to offer a mix of mutual funds, ETFs, and index funds that are structured to provide low fees for all investors.
“The key thing we’re trying to do with InstaMeritrases is make sure that people are getting a fair and equal return on their investments,” Mr Wilson says.
Mr Farr is also the founder of the Social Capital Investment Institute, a non-profit organisation he established to help promote socially responsible investment and investing.
Mr Wilson says the company is the latest in a long line of companies to launch such platforms in Australia, and it is a direct result of the changes he believes are taking place in Australia.
“We’re seeing a lot of changes happening in Australia in terms of the role of government and the role in the private sector,” he said.
“When governments are looking at investing in the public sector, they’re looking at tax-free assets, which is not the case in Australia.”
He says the changes are also having a positive impact on the Australian economy.
“I think it’s a positive development for the Australian people, because I think that the Australian workforce is increasingly becoming a part of the private market, and I think there’s more opportunity for people to be involved in the Australian market as a worker, as a customer and a contributor,” Mr Gurdon said.
The social investment platform will operate for five years, and the company plans to open its doors to the public in the future.
“Over time we want to build a platform that has all the information you need to be able to make an informed investment,” Mr Wood says.
The company has a network of more than 20,000 customers across Australia, with many more who are interested in being involved in social investing.
“People need to know where their money is going, and if they can afford to take that risk, and we’re building an easy way for them to do that,” Mr Williams says.
InstaAmers, which has been trading on the ASX since September last year, is currently accepting funds from institutional investors.
Mr Williams says the platform is already working to improve the process for new users to invest.
“At the moment, it’s all about asking for a deposit, and then you have to go to a bank to actually get a deposit.
So it’s not that simple for anyone who hasn’t tried it,” he explains.”
But the idea is to have it be very straightforward, so that people who have a bit more time, or are more experienced, can do it without having to go into a bank.”
For us, we’ve seen a lot more people invest now in insta-meritraises because they’re more comfortable with that, they think it’ll help them better understand the products.
“The company says it has received more than $200,000 in investment funding since launching in September last, and has plans to raise $300,000 more in the coming months.
Mr Gurda says the social investment market is already crowded and needs to be more open.”
Insta-ameritikshas the perfect platform for those people that are willing to do some small investment, because there are a lot to choose from,” he argues.”
You can do this for free, you can do that for a few bucks, but the reality for the average investor is that there is a lot that they need to do.”Topics: