I’ve heard several successful stories about Risevest in recent times. How Investors make money without breaking their back and why you should join the gang.
But is Risevest really worth your money?
Should you invest your hard-earned money in Risevest and hope that it appreciates?
In this article, I will scrutinize the Risevest proposition to see if it is genuine and really worth your coin.
Without much ado, let’s dive in.
The Risevest Company
The company behind the Risevest website and app is known as Risevest Technologies Limited. A company that is registered with the Corporate Affairs Commission of Nigeria and has been in operation since 2019.
They claim to help you invest in a diverse portfolio of U.S. Stocks, Real Estate, Stable Foreign Currencies and other managed investment options.
And guess what?
They promise you a guaranteed interest in return.
The way it looks on the outside, there seems to not be any risk involved as the bulk of the investment risk is borne by Risevest.
This means that Risevest is able to position as an investment company that offers high ROI and a safety net against the current raging inflation.
Risevest Investment Offerings
If you are looking to invest with Risevest, then you need to know what’s in it for you and what the company is offering in return for your capital.
Here are the investment options offered by Risevest.
U.S Stocks
On Risevest, investors have access to invest in U.S. stocks from Nigeria. In return, they get a guaranteed 14% ROI per annum.
You don’t have to travel abroad or contact a U.S. stock broker to do that. Risevest handles all of that. All you have to do is hand them your money.
Risevest claims that they are in partnerships with several accredited and regulated stock brokers abroad who facilitate these stock investments and handle other legalities.
In truth, for beginner stock investors, a 14% ROI per annum without any risk may represent a good deal.
Real Estate Investments
Risevest also avails its investors the opportunity to invest in choice real estate investments in return for a 15% ROI per annum.
According to their website and app, there is no risk or obligation on the side of the investor. All you have to do is hand them your money.
Not bad. And definitely better than what traditional banks currently offer.
Fixed Income FCY
Apart from its U.S stocks and real estate investment portfolios, Risevest also offers its investors the chance to save in foreign currency (U.S. Dollar) and get fixed income.
The company encourages investors to save their money in a “secure and appreciating currency” like the dollar, which is true when you consider the current freefall of the Naira.
The Risevest Fixed Income FCY investment promises its investors an impressive return of 10% per annum.
What I Like About Risevest
No matter the investment, there is always one or two highlight features that make the product stand out.
And Risevest is no different.
There are a few things I like about the Company, and I’ll be listing them below.
Great for Beginners
Seriously, Risevest absolutely cut the chase to offer what many beginner investors are looking for.
And guess what?
Majority of fintech investors in Nigeria are beginner investors. This demographic represents over 60% of passive investors in Nigeria.
What this group wants is to simply see their money grow. No need for graphs, risk analysis, and complex algorithms. Just make their money grow.
Interestingly, Risevest is well-positioned to capture and satisfy this demographic.
Financial Advice & Wealth Management
This buttresses the point that Risevest really knows its market.
By targeting beginner investors and people who just want to hand over their money for capital gains, Risevest has a responsibility to educate its customer base on investing, and the company is doing just that.
The company provides additional services such as financial advice for people looking to grow their funds, and wealth management for long-term investors.
This creates an avenue to not only have a well-informed customer base that can trust the company but also avenues for Risevest to generate revenue and grow their fund.
Active community (Risevest Investment Club)
Risevest is blazing the trail with their investment club on Telegram.
This active community adds some sauce to Risevest brand and makes the company appear closer to its customer.
This investment club as it is called by Risevest, gives investors the chance to network among themselves, as well as communicate with Risevest to quickly get information or resolve issues in an informal setting.
What I Hate About Risevest
To be honest, it’s hard to find a negative with Risevest, but if you look closely, there are a few things that can be frustrating for any investor.
Management Fees
The perception I get with Risevest is that they have a traditional operational mechanism that is different from today’s fintechs.
Their management fees and other charges are just too much.
It feels like they give you interest with their right hand, and take it back with their left hand in the form of charges and fees.
Here are their fees and charges:
Deposit Charges:
- Naira Deposits: 1.4% to 1.5%
- Dollar Deposits: 2.9% to 3.9%
Interest Charges:
- ROI between 10% and 15%: 1.5% Charge
- ROI above 15%: 2% Charge
A simple math will show that if these charges are considered in the overall interest given by Risevest, the original interest would be down by 2% to 5%.
In other words, the interest rates advertised by Risevest are not what they seem to be.
I mean, which investor is happy to pay management fees these days?
In fact, most fintechs would gladly soak up the management cost and maybe reduce the interest accrued to investors. That would look more transparent in the eye of the average investor.
Perception is everything.
I bet most investors would happily invest for 8% ROI with no management fees than 10% ROI with management fees.
The fact that the management fees could eat into your margin is a big cause for concern.
It also discourages investors from making more transactions. Imagine being charged for every deposit or withdrawal you make with your investment account. I feel that’s really discouraging.
Lack of Flexibility
This might be me going overboard, but I think Risevest is not really flexible in their product offerings.
I’ve seen other fintechs like Cowrywise and Piggyvest bend over just to adapt their products, but the way Risevest is positioned, it’s either you invest or you get out.
Yes, Risevest just like many other investment platforms in Nigeria are targeting beginner investors, but what about those who want to invest by themselves.
It’s all good that there is no perceived risk on the side of the investors, but that also means no flexibility and lower returns.
I feel that Risevest should at least make room for investors who want the option of investing by themselves for higher returns.
Just look at what new fintechs like Passfolio are doing.
There’s so much more that Risevest could do with their platform to bring other types of investors onboard.
Well, maybe they have such plans in the pipes, so let’s watch out.
Can You Lose Money on Risevest?
Now, back to the most important question for many investors.
Can you lose your money by investing in Risevest?
Well, for clarity sake, you can lose money while investing, no matter how secure the platform seems.
But Risevest already has a massive social and institutional credibility that you would hardly lose your capital barring any unforeseen circumstances.
They already have Silicon Valley investors backing them, so that should tell you how credible they are.
My only grouse is that as a beginner investor investing with Risevest, you are already losing money without knowing it.
By handing your money over to Risevest to invest for you, you are leaving money on the table.
If you would just improve your investment knowledge and find the right platform, you’d be making much more with the same capital and similar investment portfolio.
But Risevest is still a good start.
Should you Invest in Risevest?
To be honest with you, investing with Risevest should be for those who do not have the time or the right opportunity to grow their money.
It is far better to invest in Risevest than let your money collect dust in your bank account.
But, the fact is, there are better ways to earn profit on your capital.
Risevest would give you reasonable returns, but the income is fixed. So, the ceiling for growing your money is quite low.
And if per adventure, you find a better opportunity elsewhere and try to withdraw your money from Risevest before your investment matures, Risevest would slap you with a 5% penalty fee.
For information sake, Risevest is not a savings wallet. It is strictly for Mid-term to long-term investing.
In fact, Risevest wants to hold your money for as long as possible, and if you try to break the contract or play smart, you would lose part of your capital in penalty fees.
So, it’s advisable to invest in Risevest only with money you won’t be needing anytime soon.
It could be a percentage of your monthly pay or funds reserved for a future project.
With that said, Risevest is a good platform to invest, but please don’t invest your food money 🙂