To make a smart investment, the service provided by the app must be analyzed comprehensively, including ease of use, information provided, transparency in operation, commission rate, minimum investment and time spent on money. At the same time, the investor’s risk profile, the financing objectives planned for the future, the investment period and the results that are expected to be obtained within its term must be considered.
Investment mobile applications have become a complementary model to traditional banking, for those investors who have little knowledge in finance and who generally allocate small amounts of money, and expect to obtain short or medium-term returns, joining as well as another tool to the portfolio that investors have.
These apps offer an updated financial information service with data from the most important companies in the sector where you invest. Among its benefits is the access it gives to those who want to invest, but who, for various reasons, previously could not access traditional investment channels; and the great diversity of financial instruments that they offer in different parts of the world. This means that both in Chile and internationally its use has experienced a boom in recent years.
Even some of them, in order to reduce transaction costs and internal operation of suppliers, use Artificial Intelligence models to evaluate investments and investor profiles automatically, with the wide range of available data, and, in this way, way, offer quick decisions, without human intervention and with a high level of precision.
Some aspects that users should consider to invest in an app are related to analyzing each application on its merit. That is, review your experience in the field, users who use it, profitability levels, problems you have had with other investors, among other aspects. Thus, you must also analyze the type of instrument in which you want to invest, its risks and possible returns, and know well the support and security that each app that exists in the market has.
To make a smart investment, he says that the important thing is to analyze the service in an integral way. Not only should the commission rate or the ease of use of the app be reviewed, but also other factors, such as the information provided by the application, transparency in the operation, minimum investments and time of permanence of the money, among other aspects.
Other elements that must also be taken into account are the risk profile of the investor, the financing objectives that he has in mind in the future, the period that he wants to invest and the results that are expected to be obtained within his term.
These applications have become a new investment sector that is taking shape, so national and international regulators are creating rules and regulations that will be applicable to these transactions. At the same time, many industry practices are being studied for their impact on investments and the market.
For this reason, it is convenient for those who want to use them to check if the apps comply with the regulations, give an account of the guarantees they may have, and the restrictions that may apply or the “grey areas” of regulations or investment practices.
By Jerko Juretic, academic director of programs of the Executive Education unit (UEjecutivos) of the Faculty of Economics and Business of the University of Chile
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.