For many Nigerian millennials, Risevest and Passfolio are the go-to fintechs for putting their money to work in terms of foreign investment.
Both companies offer excellent options for investing and making money with U.S stocks, REITs, and ETFs.
But there is a slight distinction between both fintechs, as they target different demographic of investors.
In this article, we’ll use a few metrics to analyze both fintechs and their offers to know which is more suitable for your kind of investor.
Let’s get started.
Investor Level
Both fintechs cater to different investor levels, and rightly so.
In my opinion, Risevest is targeted to low and mid level investors who are either looking to invest for fixed income or into pre-vetted investment assets.
On the other hand, Passfolio looks to be targeting the high level investors who are DIY at the core.
They offer a large bouquet of investment assets and let the investors make their choices.
Flexible Investment Platform
Passfolio provides a more diversified asset class that is targeted for millennial investors who may enjoy taking higher risk.
Passfolio doesn’t only offer thousands of U.S stocks, REITs and cryptocurrency for investment, they top it up with a host of high-performing non-U.S company stocks with good returns.
On the other hand, Risevest may not be as flexible, with an offering of pre-vetted U.S stocks, REITs, and fixed income.
But what Risevest doesn’t offer in terms of flexibility, they offer in security. This is good for cautious investors who only want to see their investment go north.
Guaranteed Fixed Income
Risevest is the king of guaranteed Fixed income here. The performance of their listed assets is almost locked in, even with their stocks portfolio.
If you are looking for a guaranteed return on investment with no stories, then Risevest should be your choice.
On the other hand, Passfolio leaves the choice of investment at the whim of the investors.
There is no guarantee of a fixed income with Passfolio, but you enjoy the flexibility of employing every tool in your arsenal to make your investment grow
Higher Earnings
With higher risk comes higher earnings. Passfolio takes the win here.
On Passfolio, you could lose your investment on bad asset choices or you could be the next wolf of wall street smiling to the bank.
Risevest on the other hand is best for the money rabbits whose priority is to secure their capital at all cost.
If the safety of your capital is more important than growing it to enviable heights, then Risevest is your plug.
The Millennial Investment Platform
The truth is that both Risevest and Passfolio are doing a great job in helping millennials put their money where their mouth is.
However, if we look at the most important elements of millennial investing — flexibility, high earning potential, and speed of money — we can say that Passfolio is more likely the right fit.
Investing from a mobile app is still quite a new phenomenon, so we can expect a lot of growth from these fintechs going forward.
Hopefully, they can use customers’ feedback to evolve their products and make investing in foreign assets more attractive for Nigerian millennials.