The Strategist

Goldman Sachs launches money management service for investors with $1000 capital

02/17/2021 - 03:22

Bank for millionaires Goldman Sachs has launched an asset management service for mass investors with a capital as little as $1,000. Unlike Robinhood and other companies that help first-time investors enter the market, Goldman will not allow newcomers to buy and sell individual stocks themselves.

Goldman Sachs is launching Marcus Invest, an asset management service for investors with small capitals, Reuters reports. The service will automatically invest client funds in equity and bond exchange-traded funds (ETF), as well as rebalance portfolios based on models developed by the bank's investment strategists. 

Goldman Sachs has historically offered asset management services to clients with more than $10 million in assets, notes The Wall Street Journal. 

The new service is designed for mass investors: the minimum amount to open an account is $1,000. The annual service fee will be 0.35%, while wealth advisory fees for high net worth clients can exceed 1% of the account balance, the publication points out. 

Retail investor interest in the stock exchange trading is at a peak right now: stock trading apps like Robinhood have already gathered plenty of newcomers willing to take part in "viral" stock trading at GameStop and other companies popular with traders, the WSJ says. 

However, Goldman Sachs' service distances itself from Robinhood and others, stating that it won't let investors trade shares of individual companies just yet. The bank believes the best means for most investors to gradually build capital is to diversify portfolios. 


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