(ThePennyWatcher.com) – There are plenty of new tools on the market that aim to develop a new and creative way for investors to get involved in an ever changing tech stacked market.
Fundrise is one of those companies. Known in the sector of “fintech” it’s a company that operates and provides and online investment vehicle.
It was launched back in 2010 and rose to prominence as a pioneer in making private market investments accessible to everyday investors.
What Were They Disrupting?
Typically the private market has been the target of bigger institutions, like big banks, etc. The team at Fundrise wanted to make its accessible for the smaller everyday investors, so they set out to make that a reality.
How do they do it you ask? There a few basic ways to make it simple.
- Pooling smaller investments: At a high level they are able to “pool” investments from a variety of individual investors, and spead the allocation out amongst a wide set. It provides more leverage.
- Lowering barriers to entry: Fundrise offers much lower investment barriers, so it provides an easy way to get involved.
What Does Fundrise Offer?
There are few sectors that are targets of Fundrise, and they are:
- Real Estate Funds: You can invest in diversified portfolios of income-generating real estate like apartments, warehouses, and industrial properties!
- Venture Capital Funds: Gain exposure to high-growth private companies with the potential for significant returns that would otherwise be available to only the big guns.
For Beginners:
- Simple Platform: Fundrise offers a user-friendly platform with clear explanations of investment options and risks.
- Investment Flexibility: You are able to choose from various real estate and alternative investment options based on what your risk tolerance and investment goals are.
- Start Small: There are low minimums across the board for their portfolios, so you can get in small before you may decide to scale things up.
For the more experienced Investors, the platform also provides some features that allow you to continue your expertise with some new verticals.
Diversification Opportunities: Remember, Fundrise allows the more experienced investor to access new asset classes.
Professional Management: An expert management team powers Fundrise’s offering. They are there to help where needed.
Transparency and Communication: You can count on regular updates on your investments and the overall market performance.
Things to Consider:
Liquidity: Unlike stocks or mutual funds within the standard market, most of the assets are considered less “liquid” meaning you will have to wait until the investment matures before you look to see a profit.
Fees: Yes, there are some management fees associated with Fundrise.
Always remember to take as much time doing your own research as you do investing. Fundrise gives you the ability to reach some pretty neat companies that are trending up, and more specifically big real estate deals.
Since 2012 according to their website and CEO Ben Miller they boast 385,000 investors, 7 billion in total assets, and a return of around $361 million to their customers.
Way to go Fundrise! Cheers.
