In 2007, Mitch Tuchman, CEO and Co-founder of Market Riders, bring with the concept of ‘do-it-yourself service’ to customers to manage their own retirement portfolios. MarketRiders.com is one of the first online investment management websites. Their website uses the software based on the research of Nobel Laureates. Market Riders help you to build and manage a globally diversified, low- cost retirement portfolio. While other companies focus on the latest market-timing fad, Market Riders help their customers to contend, institutional investors, with a time-tested technology which can be trusted.
Market Rider’s investment approach is based on Modern portfolio theory(MPT), not on traditional stock picking. MPT look about to optimize investment return while lowering risk. MPT theory is based on investing in entire market or indexes rather on the individual stock. The aim of MPT approach is to analyze customer’s level of risk tolerance and then build a diversified portfolio with maximum expected return. Market Riders assist investors, to protect and grow their wealth by taking control of their investing. Market Rider’s software is always watching their investor’s money, and their re balancing algorithm will alert when adjustments are needed. Their online portfolio management services are used by thousands of subscribers to build over 15,000 portfolios valued at over $5 billion.
Market Riders portfolio is constructed using the lowest cost, tax efficient, well constructed Exchange Traded Funds(ETF)
EXCHANGE TRADED FUNDS(ETF)
”An ETF is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities or bonds, and trades close to its net asset value over the course of the trading”
Features of ETF
- Diversification: Through ETF you will get an exposure to a diversified portfolio of securities through a single transaction.
- Lower Investment cost: ETF incurs certain fees and expenses. These fees and expenses are deducted from the ETF assets and the NAV may be reduced accordingly. The annual management fees are generally lower at less than 1%, compared to the management fees usually charged by most traditional funds.
- Higher Liquidity: ETFs have higher daily liquidity than mutual fund shares which attracts individual investors.
- Access to many markets via single platform: ETFs allow investors to access many markets via a single platform. This provides an opportunity for investors who are not able to buy securities listed on foreign stock exchanges.
- Transparency: Real Time information’s are easily accessible to investors.
- Flexibility: Buying and selling of ETFs at any time during trading hours.
- Benefits of trading like a stock: ETFs allow investors to trade the entire market like a single stock. ETFs can be used for speculative trading strategies and allows the investors to do more than trade intraday.
- Tax Efficiency: ETFs are more tax efficient than index funds. Investors trading large volumes can redeem them for the shares of stocks. This minimizes the tax implications for investors exchanging ETFs. Capital gain from in-kind transfers seen in ETFs ,do not results in a tax charge
Why Market Riders?
The aim of market riders is to assist people to manage their retirement portfolios more effectively. They advise investors who are interested to execute their own trades and to be involved in the investment process. With best practices investment theory Market Riders monitor investment portfolios and make investment recommendations. They provide the option to try their service for free for a limited period time. For their portfolio monitoring and advice, Market Riders charge $14.95 per month or $149.95 per year, which is less costly than hiring a personal investment advisor. The portfolios the company recommends are similar to most automated advisors, low- fee exchange traded funds.
Market Riders suggest investing in ETFs which cost an average expense ratio of 0.19%, rather than actively traded funds which charge up to 6 or times more. This helps their clients to save more. With a minimum Investment of $25000, you can start with Market Riders. They recommend how and when to re balance their portfolio. Market Riders do not place orders; their clients themselves place an order as per their advice. Their service is geared towards a small target audience. In the past few years, Market Riders have focused on integrating with brokerage accounts and further lowering their fees. They also built a number of interactive tools like portfolio builder, mutual fund fee analyzer, portfolio performance bench marks and more.
How Market Riders Works
Set up an account with Market Riders, then adjust your investments to match its recommendations. They provide two options; you can build your own portfolio or letting them build the portfolio for you. If you are choosing the second one, they will ask about your assets, investing experience, age, risk appetite and goals.
Once the basic information is gathered they will suggest which ETFs to buy. Through mail they will advise, what you can buy and sell to re balance your account. With a single subscription, you can manage up to 10 portfolios.
Market Riders is not accredited with BBB(Better Business Bureau) and thus has no rating. But they have good customer feed backs about their powerful tools. Market Riders has been featured in major media coverage such as New York Times, The Wall Street Journal, CNN & Market Watch .The Credibility of Marketriders.com is very high in quality.
How To Become A Good Investor
Everyone dreams to make the maximum profit with less risk, if you have to earn you need to take risk .If Market Timing and Investing strategy work well together, solid returns can be earned over a number of years. Focus on good companies and try to learn more about the company and then hold them for the long term. No one can actually predict markets fluctuation. Don’t put your entire worth in one stock, diversify your funds. Diversification means using different trading strategies and instruments in order to reduce risk.
Don’t buy a stock that is going down instead; buy something that has started going up. In order to prevent massive loss, it is better to apply exit strategy on every investment you make. If you are in doubt of investing your money in new stocks, then never do it. First, try to understand and learn about the stock then invest. Educated Investors earn higher returns, commit to learning first and you will get better at investing. Slow and steady savings with a disciplined plan deliver results.