Titan is an funding platform that mixes the low price, hands-off method of a robo-adviser with a portfolio actively managed by registered advisers with hedge fund creds.
The platform isn’t a hedge fund. It’s an funding adviser that mixes environment friendly know-how with artistic investing methods its founders discovered whereas working for hedge funds and different companies.
The app makes these methods — in any other case reserved for the ultra-wealthy — accessible to on a regular basis buyers with a low minimal funding, comparatively low charges and a platform that allows you to handle the entire thing out of your telephone.
In our Titan make investments assessment, we’ll cowl all the things that you must know in regards to the app, together with the way it works, what it prices and find out how to resolve whether or not it’s best for you.
What Is Titan Make investments?
Titan is a cellular investing platform that provides actively managed funding portfolios with human funding advisers for as little as you’d pay for many robo-advisors. It makes use of hedge fund–like methods in an try and beat the market and give you increased returns than with conventional investments.
Titan is an SEC-registered funding advisor, much like in-person companies you may use. But it surely retains prices low through the use of its know-how for environment friendly account administration and investing methods. With decrease prices to function, Titan goals to make its aggressive funding methods accessible to everybody, not simply the ultra-rich.
Titan was based by Clay Gardner, Joe Percoco and Max Bernardy, who all had expertise working at hedge funds and funding banks. Mixed, they carry expertise as hedge fund advisers and software program engineers.
The trio noticed that conventional hedge funds — which use extra aggressive and atypical funding methods for the prospect of upper returns — have been out of attain for many buyers due to astronomical funding minimums. They based Titan to interrupt by way of that barrier.
How Does Titan Work?
Titan actively manages your funding portfolio for you utilizing its distinctive software program and hedging technique. Because it manages your account, it’ll ship you real-time updates (as messages and movies) explaining actions available in the market that drive its funding technique.
In contrast to a standard hedge fund, Titan doesn’t add your cash to a pool with different buyers’ and make choices for the entire fund. Your cash lives in your personal funding account, and Titan manages your portfolio based on your particular funding targets and threat tolerance.
4 Steps to Begin Investing With Titan
- Open an account.
- Switch a minimal of $100 on your first funding.
- Titan manages your portfolio actively.
- Get real-time updates about adjustments affecting your portfolio.
To get began with Titan, you possibly can create your account on-line or by way of the Titan app. You’ll must switch a minimal of $100 in capital from a linked checking account to begin investing.
Cash you switch into your Titan account goes right into a Titan Money account, a money administration account that holds your cash earlier than it’s invested. Titan will make investments your cash utilizing a mixture of 4 funding methods based mostly in your account steadiness, funding targets and threat tolerance.
As it really works for you, Titan advisers will preserve you up to date about what’s happening available in the market and the way it’s driving the agency’s funding technique. So that you’ll be aware of top-of-class funding analysis with out doing the legwork or spending all day beneath the glow of a Bloomberg Terminal.
How Titan Invests Your Cash
Just like the hedge funds it emulates, Titan goals to develop your capital at a excessive price of return by way of investments in shares. In contrast to many brokerage apps, its portfolios don’t embody bonds or exchange-traded funds.
Titan Funding Methods
Technique | Funding Description | Variety of Belongings | Minimal Internet Deposits | |
---|---|---|---|---|
Titan Flagship | Massive cap U.S. firms | 15 to 25 shares | $100 | |
Titan Alternatives | Small cap U.S. firms | 15 to 25 shares | $10,000 | |
Titan Offshore | International markets | 15 to 25 shares | $10,000 | |
Titan Crypto | Currencies, NFTs, extra | As much as 10 cash | $100 |
Titan makes use of the Flagship technique for all buyers, and you may choose into the Crypto technique, whatever the dimension of your account. It’ll allow you to embody the Alternatives and Offshore methods when you’ve deposited at the least $10,000 into your Titan account or made two referrals to the app.
Hedging
What units Titan other than competitor funding apps is its use of hedging, which makes use of a technique referred to as shorting to guard your portfolio from market downturns.
Shorting means promoting a inventory at a excessive worth that you simply count on to rebuy later at a cheaper price for a revenue. The observe is understood within the business as draw back safety, or a strategy to earn cash even when inventory values drop.
Titan hedges a portion of your portfolio based mostly in your threat tolerance.
When the market’s trying good:
- Aggressive: 0% of portfolio worth is hedged.
- Average: 5% of portfolio worth is hedged.
- Conservative: 10% of portfolio worth is hedged.
When the market’s in a downturn:
- Aggressive: 5% of portfolio worth is hedged.
- Average: 10% of portfolio worth is hedged.
- Conservative: 20% of portfolio worth is hedged.
Fractional Share Buying and selling
Like most funding apps, Titan invests your cash in fractional shares, or items of a inventory relatively than the entire thing. Which means you possibly can personal items of extremely invaluable firms with out blowing your entire account steadiness on a single inventory.
Analysis
Titan differs from typical brokerage apps in two main methods: It’s not solely a robo-advisor, but it surely’s not a platform for self-directed investing. As an alternative, the app facilitates a cost-efficient relationship with private funding advisers.
As a result of the agency makes your funding choices for you — based mostly in your profile of monetary targets and data you present and replace — it retains you within the loop on what drives these choices.
You’ll get notifications when main strikes occur available in the market, like what did Schwab do final quarter or what’s within the information about Tesla?
That is the data Titan’s crew of specialists makes use of to decide on the place to take a position your cash, and these updates might help you verify it’s technique is in step with your targets.
Titan beats conventional hedge fund investing with low minimums and low charges, and it competes with different investing apps by providing hands-on portfolio administration for charges similar to most robo-advisers.
Titan Make investments Options
Function | Particulars | |||
---|---|---|---|---|
Minimal funding | $100 | |||
Advisory price | $5/mo. or 1% AUM | |||
Portfolio combine | Actively managed | |||
Socially accountable portfolio choices | No | |||
Retirement account choices | Trad., Roth, SEP or IRA | |||
School financial savings account | No | |||
Tax technique | n/a | |||
Computerized rebalancing | Sure | |||
Human advisor choice | Sure, included | |||
Money administration account | Price-free money account | |||
Banking options | None | |||
Buyer assist | [email protected] |
Minimal Investments
A very powerful distinction between Titan and a typical hedge fund is the barrier to entry. Conventional hedge funds are accessible solely to accredited buyers, who’ve revenue of at the least $200,000 per yr or $1 million web value. Titan drops that restriction.
To take a position with Titan, it’s a must to make a minimal preliminary funding of simply $100 and be based mostly in the US.
A brand new IRA additionally requires a minimal preliminary deposit of $100.
To incorporate the Alternatives and Offshore methods in your portfolio, it’s a must to have deposited at the least $10,000 into your Titan account (or you can also make two referrals to the app).
Titan Charges
Much like most conventional and on-line Titan prices an advisory price that is determined by the dimensions of your account:
- You’ll pay a set month-to-month price of $5 out of your linked checking account till you’ve deposited a web of $10,000.
- After you’ve deposited greater than $10,000, you’ll pay an annual advisory price of 1% of your belongings beneath administration with Titan, paid month-to-month out of your Titan account.
In contrast to conventional hedge funds, it does not cost efficiency charges, which may considerably eat away at your features. It additionally doesn’t cost buying and selling charges, commissions or withdrawal charges.
Like most monetary providers, Titan prices extra charges for some unusual actions, together with:
- Debit card transfers: 0.25%
- Outgoing wire switch: $25 home, $50 overseas
- Outgoing ACAT transfers $75
- Paper statements: $5 per assertion
- IRA termination: $60
Portfolio Combine
Titan invests your cash based on your monetary and threat profile, which relies on info you’ll share while you enroll, in addition to monetary info you possibly can replace as you go (like your revenue).
Based mostly in your profile and your deposit quantity, Titan invests utilizing a mixture of 4 branded methods of your selecting: Flagship, Alternatives, Offshore and Crypto. Every portfolio technique concentrate on a distinct sort of asset:
- Flagship: U.S. giant cap shares.
- Alternatives: U.S. small cap shares.
- Offshore: Worldwide rising and established markets.
- Crypto: Cryptoassets.
Titan additionally deploys hedging and shorts to guard your portfolio from downsides.
Socially Accountable Portfolio Choices
Titan doesn’t provide any socially accountable investing (SRI) or ESG funding methods.
Retirement Account Choices
By Titan, you possibly can open a taxable account, an IRA or each. It provides conventional, Roth, SEP or SIMPLE IRAs.
An IRA helps you to make investments as much as an annual max quantity ($6,000 as of 2022) in a tax-advantaged funding account. Contributions to a standard IRA are tax-deferred till you withdraw. Contributions to a Roth IRA are taxed now however not while you withdraw. SEP and SIMPLE IRAs are accounts that observe the foundations of conventional IRAs and are designed for self-employed employees.
School Financial savings Account
Titan doesn’t provide a 529 faculty financial savings account plan.
Tax Technique
Titan doesn’t use tax loss harvesting in its funding technique, as advisers that commerce in ETFs do.
Tax-loss harvesting is a sort of rebalancing that offsets your complete capital features by promoting comparable belongings at a loss. Brokers are in a position to do that with funds like ETFs however not single shares, as Titan trades.
Computerized Rebalancing
With a typical funding technique, a robo-adviser, human adviser otherwise you would test in in your portfolio about as soon as 1 / 4 to see whether or not the proportions of your investments nonetheless match your targets and threat profile.
That’s as a result of these proportions will be thrown out of whack when sure shares develop and others lose worth. That might have an enormous portion of your portfolio invested in a single enterprise sector, for instance, which will increase your threat for loss if that sector tanks.
Rebalancing sells off some belongings and buys others to get your portfolio again in line.
Titan doesn’t mechanically rebalance your portfolio on a set schedule, however the Titan crew handles all portfolio choices, together with rebalancing, for you, so that you don’t have to fret about it.
Human Advisor Choice
Investing with Titan connects you with an funding crew of actual, human registered funding advisers, who actively handle consumer portfolios based mostly on 4 set methods.
As a Titan consumer, you’ll get updates from the agency’s advisers about exercise on this planet of enterprise and finance that impacts their funding choices. However you received’t have direct entry to a devoted adviser for personalised skilled monetary recommendation.
Money Administration Account
Your Titan Money account is a safe money administration account that holds any cash you deposit to Titan till you select to take a position it (manually or mechanically).
The Titan Money account is simply used to carry your funds for funding and doesn’t include banking options, like a debit card or ATM entry.
Buyer Help Choices
When you don’t have a devoted monetary adviser with the agency, you possibly can attain out anytime for help from Titan’s investor relations crew.
E-mail the agency at: [email protected]
Or discover the crew on social media at:
- Twitter: @titanvest
- Fb: @titanvest
- Instagram: @titanvest
The agency doesn’t checklist a customer support telephone quantity.
Execs and Cons about Titan
These execs and cons might allow you to resolve if Titan is the best funding platform for you.
Execs
- Potential for increased returns than with typical funding apps.
- Entry to hedge-fund methods for non-accredited buyers.
- Actual-time updates about market strikes that drive funding choices.
- No lockups. Withdraw cash anytime inside two to 4 enterprise days.
Cons
- Larger threat because of hedge-fund methods.
- No self-directed investing.
Incessantly Requested Questions (FAQs) About Titan
We’ve answered a number of the principally generally requested questions on Titan.
All investments include some quantity of threat of shedding worth, and hedge-fund methods have a tendency to hold larger threat in alternate for increased potential returns. Nonetheless, your cash with Titan is protected, like all funding accounts, in opposition to enterprise failure by way of SIPC insurance coverage as much as $500,000. Crypto belongings in a Titan account aren’t coated by SIPC insurance coverage.
No. A fund is a shared pool of buyers’ cash that an funding agency makes use of to purchase equities, and all buyers get the identical remedy. With Titan, you could have a private funding account, and your cash is invested based on your particular person monetary targets and threat tolerance. Titan is an funding advisory agency.
How A lot Do You Should Put money into Titan?
Titan’s minimal preliminary funding quantity is $100 to open a brand new account. To entry its Alternatives and Offshore methods, it’s a must to deposit at the least $10,000.
Sure, Titan prices a single advisory price per consumer of $5 in case your web deposits are lower than $10,000 or a 1% annual price in case your deposits are greater than $10,000.
Is Titan Accessible Exterior the U.S.?
No, solely U.S. residents, inexperienced card holders and residents with sure visas can open an account with Titan
Dana Sitar is a Licensed Educator in Private Finance®. She’s written about work and cash for publications together with Forbes, The New York Occasions, CNBC, The Motley Idiot, The PNW and a column for Inc. Journal. She based Healthy Rich to publish tales that illuminate the range of {our relationships} with work and cash.