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Franc – An Easier Way To Start Your Investment Journey

I often get questions about which investment vehicle is the best to start investing in as a beginner or if you want to invest for your kid’s education. Being a mom myself, I can completely relate.

While there is a universe of options available today, this doesn’t necessarily make things easier to a new investor. It seems that the more options we have, the less likely we are to make decisions quickly!

I’ll give you an example: last year when we were in hard lock-down and we were all trying to navigate the new norm, I subscribed to Netflix which felt like a great idea until I realized that I spent more time searching for something that is interesting to watch rather than watching it!

So, while the options are great, the time it took for me to make a decision on what to watch took so long that I would end up not watching anything in the end!

The same analogy goes for investing. I have seen that due to the many options available, most new investors get overwhelmed and end up not starting their investment journey altogether!

This is where I think the Franc App has a nifty solution – they make investing easy, accessible, and at a low cost without bombarding you with too many options that leave you confused and intimidated.

Whether your goal is short-term or long-term; whether it is to build up your emergency fund, save for a deposit on a house, save towards your child’s education or simply to save for a long overdue holiday, the app allows you to set up your goal and target date. I love this because it makes your goal tangible. I always say that your financial goals should be S.M.A.R.T (Specific, Measurable, Attainable, Realistic and Time-bound)

For example, one of my fun goals when our second-born who is due now in June is a bit older, is to go to a carnival on an island (with COVID regulations permitting of course). Using the Franc App, you will be able to create your goal, then you will be asked to complete what is called a risk profile to assess your investment time-horizon (just a fancy way to say ‘how long do you want to save or invest for’) and how comfortable you are with taking on risk.

Depending on your answers, you will either be ‘Safe’, ‘Balanced’ or ‘Bold. The App will then allocate your money between the two funds available, either the Allan Gray Money Market (which has little risk) or the Satrix 40 ETF (which is an equity fund meant for long-term investments).

One of the things I often speak about is fees, the higher the fees on your investment, the less you, the investor will have in the end. That’s why I like Franc, they charge 1% on their platform versus some platforms that go all the way to 3%!

I also like the fact that there are no minimums, this means that you can invest from as little as you want and as frequently as you like. And there are no penalties should you wish to stop making contributions to your investment – I think this is important as we have seen how quickly one’s financial situation can be turned around due to circumstances beyond their control like a pandemic.

With any investment, it is important to do your research and make sure that everything is above board, and one of the best ways to do this is by investing in reputable companies that are registered as a Financial Services Provider. Always look for their registration number to verify. In Franc’s case their Registered FSP No. is 49998.

I will say this though, as with any new app and venture, there are some limitations; for example, currently you can only choose one goal (but Franc says they are working on adding multiple goals shortly). If you have been hesitant because of the array of options available, I certainly think Franc is a good place to start investing.

Tribe, what has kept you from investing or saving in the past? And what financial goal do you want to work towards?

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