Investing apps have revolutionized the way we manage our finances. They democratize investing by making it accessible to everyone, not just the wealthy. With just a few taps on your smartphone, these apps allow you to invest your money in various asset classes.
Explore a comparison of top investing apps – YieldStreet, Fundrise, and DiversyFund to find the right platform for your investment management.
If you want to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).
How can Investing Apps aid your financial growth?
Investing apps come with a range of benefits. They offer flexibility, convenience, and often lower fees than traditional investment routes.
With investing apps, you can track your investments in real-time, access various asset classes, and get expert advice. For many, investing apps are an excellent tool for building wealth over time.
As technology advances, so do investing apps. From improved user interfaces to expanding investment offerings, the future of investing apps is exciting.
What is YieldStreet?
YieldStreet is one of the investing apps that offer unique investment opportunities traditionally only available to institutional investors. It operates on “democratizing the investing process,” aiming to provide access to asset classes like real estate, legal finance, and marine finance.
The Types of Investments YieldStreet Offers
YieldStreet presents a selection of alternative investment options. Using this investing app, you can find opportunities in asset-backed loans, including real estate, commercial, legal, and consumer finance. This range provides an excellent opportunity for diversification, something all savvy investors should strive for.
How YieldStreet Works
YieldStreet functions by providing access to asset-backed loans via its investing app. As an investor, you buy into a loan and then receive returns as the borrower makes payments. The unique selling point of this investing app is that these are investments previously inaccessible to individual investors, meaning you can participate in potentially high-yield opportunities.
Pros and Cons of Investing with YieldStreet
Like all investing apps, YieldStreet comes with both pros and cons. The obvious benefit is access to unique, high-yield investments. It also has a relatively low minimum investment amount compared to similar platforms. However, it’s worth noting that investments on YieldStreet are relatively illiquid, meaning they can be hard to sell if you need to access your money quickly.
What is Fundrise?
Fundrise, another leading player in the investing apps field, brings the world of real estate investing to your fingertips. It makes the historically exclusive realm of real estate investment trusts (REITs) and private real estate accessible to individual investors.
The Types of Investments Fundrise Offers
The beauty of Fundrise lies in its simplicity and the wealth of real estate opportunities it opens up for the average investor. This investing app primarily deals with eREITs (Electronic Real Estate Investment Trusts) and eFunds. It allows you to invest in portfolios diversified across property types and geographic locations.
How Fundrise Works
As an investing app, Fundrise lets you put money into its eREITs and eFunds, providing a hassle-free approach to real estate investing. You choose a level of risk you’re comfortable with (supplemental income, balanced investing, or long-term growth), and Fundrise builds a portfolio. It’s a hands-off approach to investing in real estate, making it an attractive choice for those new to the space.
Pros and Cons of Investing with Fundrise
Just like all investing apps, Fundrise has its strengths and drawbacks. A significant advantage is the low minimum investment, which allows beginners to start investing with just $500. Moreover, the automatic diversification of your investments reduces your risk exposure. However, Fundrise’s investments are not liquid, and fees could be associated with early withdrawals. Therefore, it’s wise to consider these factors before deciding if this investing app aligns with your financial goals.
What is DiversyFund?
A unique entry among investing apps, DiversyFund focuses on making real estate investing as inclusive as possible. This investing app aims to break down the barriers of traditional real estate investing by allowing everyone to invest in quality real estate projects, not just the affluent.
The Types of Investments DiversyFund Offers
DiversyFund offers a Growth REIT, an investment opportunity focusing on long-term capital appreciation. They carefully select, invest in, and manage a portfolio of multifamily real estate properties with high growth potential.
How DiversyFund Works
DiversyFund operates as both the investing app and the REIT manager. It takes an end-to-end approach by purchasing and managing real estate, eliminating middlemen. As a result, it claims to pass on these cost savings to investors.
Pros and Cons of Investing with DiversyFund
DiversyFund shines with its $0 minimum investment, opening up real estate investing to virtually anyone. Furthermore, as an SEC-qualified REIT manager, it provides investors with an additional layer of trust. The downside, however, is the lack of diversification, as DiversyFund currently offers only one investment product and its illiquidity.
Direct Comparison: YieldStreet vs. Fundrise vs. DiversyFund
Comparison of Investment Types
YieldStreet vs Fundrise
While these investing apps provide excellent opportunities, they focus on different investment types. YieldStreet offers diverse alternative investments, including real estate, marine finance, and more. Fundrise, on the other hand, focuses solely on real estate through eREITs and eFunds.
YieldStreet vs DiversyFund
Compared to DiversyFund, YieldStreet has a broader range of investment offerings. DiversyFund, however, concentrates on real estate investments and specifically focuses on multifamily real estate through its Growth REIT.
Fundrise vs DiversyFund
Both investing apps concentrate on real estate. But while Fundrise provides more diversification options within the real estate sector, DiversyFund offers a single REIT focusing on high-growth, multifamily real estate.
Comparison of Returns and Risk
YieldStreet vs Fundrise
While YieldStreet offers potentially higher returns due to its unique investment offerings, it comes with higher risk due to its focus on alternative asset classes. Fundrise, however, may offer lower potential returns and risk level because of its real estate focus.
YieldStreet vs DiversyFund
Comparing these two investing apps, YieldStreet may provide higher potential returns because of its unique offerings. However, DiversyFund offers a more stable, albeit potentially lower, return through its single REIT focused on multifamily real estate.
Fundrise vs DiversyFund
Both investing apps focus on real estate. Fundrise offers a variety of portfolios based on your risk tolerance, while DiversyFund offers a single, stable investment option.
Comparison of Fees and Charges
YieldStreet vs Fundrise
YieldStreet charges a 1-2% management fee, while Fundrise has a more straightforward fee structure, with a 1% annual fee. It’s worth noting that both investing apps may also include additional fees.
YieldStreet vs DiversyFund
While YieldStreet charges management fees, DiversyFund stands out among investing apps for its no-fee model, making it an attractive option for those looking to minimize costs.
Fundrise vs DiversyFund
Fundrise has a 1% annual fee, while DiversyFund maintains a no-fee policy, meaning all your money goes into your investment.
Before deciding on an investing app, you should clarify your investment goals.
Choosing the Right App for Your Investment Goals
Before deciding on an investing app, you should clarify your investment goals. This involves three key factors: understanding your risk tolerance, identifying your investment timeframe, and recognizing your financial needs.
Determining Your Risk Tolerance
Risk tolerance refers to the level of uncertainty in investment returns that you can handle. If high volatility makes you uneasy, YieldStreet might not be your best option. In contrast, investing apps like Fundrise and DiversyFund, which concentrate on real estate, offer investments typically characterized by lower volatility.
Identifying Your Investment Time Frame
The next step in choosing the right investing app involves your investment timeframe. If you’re looking for long-term growth, DiversyFund could be a suitable choice due to its focus on long-term capital appreciation. On the other hand, if you prefer a more balanced portfolio with potential for both income and growth, Fundrise could be a great choice. YieldStreet, with its unique offering of alternative investments, might suit those looking for shorter-term, high-yield opportunities.
Understanding Your Financial Needs
Lastly, it’s important to consider your financial needs. DiversyFund’s $0 minimum investment is an attractive offer among investing apps if you’re a beginner with limited funds to start investing. However, if you have more capital to invest and are looking for diverse investment options, YieldStreet might be a better fit.
Which App is Best for Your Specific Goals?
Choosing between investing apps becomes more straightforward once you’ve figured out your investment goals. If you’re interested in real estate and want a variety of portfolios to choose from, Fundrise is a strong contender. If you prefer to focus on high-growth, multifamily real estate, DiversyFund is the way to go. For those interested in unique, alternative investments, YieldStreet stands out.
Understanding the Importance of Portfolio Diversification
When it comes to investing apps, diversification is a crucial factor to consider. By spreading your investments across various assets, you mitigate risk. YieldStreet, Fundrise, and DiversyFund all offer opportunities for diversification, albeit in different ways.
YieldStreet allows diversification across unique asset classes, while Fundrise and DiversyFund offer diversification within the real estate market. Always remember the old adage, “Don’t put all your eggs in one basket.”
Future Trends in Investing Apps
As technology advances, so do investing apps. From improved user interfaces to expanding investment offerings, the future of investing apps is exciting.
For example, YieldStreet, Fundrise, and DiversyFund may explore new asset classes or provide more personalized investing experiences. Staying abreast of these trends will ensure you maximize your investment potential.
Final Verdict: YieldStreet vs. Fundrise vs. DiversyFund
Best for Unique Investment Offerings: YieldStreet
Among the three investing apps, YieldStreet stands out for its unique, alternative investment offerings. From real estate to marine finance, it provides opportunities traditionally out of reach for individual investors. If you’re looking for potentially high returns and are comfortable with higher risk, YieldStreet could be your investing app.
Best for Real Estate Diversification: Fundrise
Fundrise shines among investing apps for its focus on real estate investment, offering various portfolios for income and growth opportunities. If you’re interested in real estate investing and want flexibility in your investments, Fundrise could be your ideal investing app.
Best for New Investors: DiversyFund
For beginners or those with limited capital, DiversyFund stands out among investing apps. With its $0 minimum investment requirement and focus on long-term growth through multifamily real estate, DiversyFund makes real estate investing accessible to virtually anyone.
Remember, when it comes to investing in apps, there’s no one-size-fits-all. The best investing app for you depends on your personal financial goals, risk tolerance, and investment interests.
Securing Your Investments: A Guide to Safe Investing Practices
Investing apps are changing the financial landscape, offering unique and exciting opportunities. While these tools can open doors to new financial horizons, they also require careful navigation. Here’s how you can practice safe investing using apps like YieldStreet, Fundrise, and DiversyFund.
Comprehensive Research
Before you invest, understanding the investment is crucial. Investigate the history, the management team, and the performance of the investment. All investing apps, including YieldStreet, Fundrise, and DiversyFund, provide detailed information about their offerings. Ensure you thoroughly read and understand this information before you commit any funds.
Also, cross-verify the information presented by the investing apps with third-party resources. Remember, a well-informed investor is a safe investor.
Evaluating App Security Measures
In our digital age, cybersecurity is paramount. Check the security measures implemented by the investing apps. Look for features such as data encryption, two-factor authentication, and secure servers. Your financial information is sensitive; investing apps should treat it as such.
Regulatory Compliance
A legitimate investing app will comply with financial regulations. For instance, DiversyFund operates as an SEC-qualified REIT manager, ensuring that it adheres to stringent financial standards set by the U.S. Securities and Exchange Commission.
Similarly, Fundrise’s eREITs and eFunds are SEC-registered, offering an extra layer of protection for investors. YieldStreet also operates under the oversight of the SEC and FINRA, adding to its credibility.
Risk Management
Remember, all investments involve risk, and the offerings of investing apps are no different. A key to safe investing is understanding your risk tolerance and ensuring your investments align with it.
YieldStreet, Fundrise, and DiversyFund all provide potential risk and return information about their offerings. Review this information carefully before making any investment decisions.
Regular Monitoring
Investments aren’t a “set it and forget it” situation. Regularly monitor your investments, review your portfolio, and make adjustments as needed. Most investing apps provide tools for easy portfolio management and updates.
Securing your investments involves more than just selecting the right investment; it requires diligent, ongoing effort. Remember, the goal is not only to grow your wealth but to safeguard it as well. By following these safe investing practices, you can enjoy the benefits of investing apps while minimizing potential risks.
Conclusion: The Growing Importance of Investing Apps
As we’ve seen, investing apps like YieldStreet, Fundrise, and DiversyFund are changing the investing landscape. They’re making various investment opportunities available to all, not just the wealthy elite.
It’s essential to remember that all investments come with risks, and the investing apps we’ve discussed are no different. However, with careful research, understanding your personal investment goals, and perhaps some professional advice, investing apps can be an excellent tool in your financial arsenal.
In an era where smartphones can do so much, it’s no surprise that they can also help us grow our wealth. Whether you’re a seasoned investor or a beginner, there’s an investing app out there to suit your needs.
The world of investing apps is vast and constantly evolving, so staying informed is crucial. Make sure to check regularly for updates and new developments. As technology advances, who knows what exciting investment opportunities will be just a few taps away?
Pained by financial indecision?
Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
