Here’s why the Raiz (ASX:RZI) share price is soaring today

The Raiz Invest Ltd (ASX: RZI) share price is rallying today after the company announced its plan to change its fee structure.

| More on:

Image Source: Getty Images

The Raiz Invest Ltd (ASX: RZI) share price is climbing higher today. This comes after the mobile-first financial services platform provider announced a new fee structure for customers.

In afternoon trading, the company’s shares are up 4.85% to $1.73. Earlier today, the Raiz share price reached an intraday high of $1.80.

What are the fee changes?

Australian customers of Raiz might notice an increase in fees from 1 April 2021 for the micro-investing platform. However, not all of Raiz’s now over 340,000 active customers will be impacted.

If you use the company’s recent “Custom” portfolio, you can breathe a sigh of relief. The portfolio launched in January will retain its existing fee of $4.5/month on balances below $20,000, or 0.275% p.a. on balances over $20,000.

The same goes for anyone with over $15,000 in any of the standard portfolios offered by Raiz. This includes conservative, moderately conservative, moderate, moderately aggressive, aggressive, emerald. On the other hand, if you hold less than $15,000 in your standard portfolio, fees will increase to $3.50/month.

Further, the Sapphire portfolio, which offers investors a 5% exposure to Bitcoin (CRYPTO: BTC), will experience a hike to $3.50/month as well.

Quality comes at a price

Largely, the reason given for the elevation in fees is an increase in costs associated with providing the Raiz platform.

Raiz Invest Group CEO and Managing Director, George Lucas, commented:

There is an increasing corporate governance cost associated with delivering financial products and services that requires ongoing investment in technology and resources, such as people. This is important to ensure we are compliant, protect our customers’ data and investments and are constantly meeting (or exceeding) our customers’ expectations

Mr Lucas went on to explain the criticality of continuing to provide an exceptional experience. Corporate governance, risk management, and oversight seem to be the pillars of the justification.

“A fee increase is always a very considered decision, and, despite this latest increase I believe our fees remain competitive for the suite of cutting-edge features and options we provide,”

Raiz share price performance

It appears investing in the investment platform itself this last year would have been more prosperous than in its portfolios. The Raiz share price has performed exceptionally in the last 12 months, returning 138%. Most of the company’s portfolios are a diversified mix of index exchange-traded-funds (ETFs), alongside bonds and money markets. Hence, the diversification associated with risk management tends to lead to lower but more sustainable returns. 

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Mitchell Lawler owns shares of Bitcoin. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Top 10 - asx shares today
Share Market News

Here are the top 10 ASX shares today

Today, the S&P/ASX 200 Index (ASX: XJO) fought back against the selling pressure throughout the day to finish in the green. …

Read more »

The word inflation written with a ticking time bomb.
Share Market News

Why is it when Jerome Powell sneezes, the ASX 200 catches a cold?

Key points The ASX 200 took a hit following comments from the United States Federal Reserve chair Jerome Powell Expectations …

Read more »

blue arrows representing a rising share price ASX 200
Share Market News

These 3 ASX 200 shares are topping the volume charts this Friday

Finally, a day of green for ASX shares! The S&P/ASX 200 Index (ASX: XJO) is bouncing back strongly today, after a …

Read more »

Young boy wearing suit and glasses adds up on calculator with coins on table
Share Market News

This world-famous fund manager is ‘buying the dip’. Here’s why

Key points Bill Ackman is one of the most famous fund managers in the world He runs Pershing Square Capital …

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Share Market News

ASX 200 (ASX:XJO) midday update: ResMed and PointsBet disappoint

At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a much-needed positive …

Read more »

A man activates an arrow shooting up into a cloud sign on his phone, indicating share price movement in ASX tech shares
Share Market News

Is the Betashares Nasdaq 100 ETF (ASX:NDQ) an opportunity in this market correction?

Could the Betashares Nasdaq 100 ETF (ASX: NDQ) be a good opportunity during this correction for both the global share …

Read more »

A woman shouts through a megaphone.
Share Market News

2 ASX growth shares to buy in February with 40% upside

If you’re looking to make some additions to your portfolio in February, then the two ASX shares listed below could …

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Friday

On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard and was able to record a small gain. The benchmark index rose …

Read more »