Titan is an funding platform that mixes the low price, hands-off strategy 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 expertise with artistic investing methods its founders realized 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 traders with a low minimal funding, comparatively low charges and a platform that permits you to handle the entire thing out of your cellphone.
In our Titan make investments evaluate, we’ll cowl every little thing you should know in regards to the app, together with the way it works, what it prices and methods to resolve whether or not it’s best for you.
What Is Titan Make investments?
Titan is a cellular investing platform that gives 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 larger returns than with conventional investments.
Titan is an SEC-registered funding advisor, just like in-person companies you may use. Nevertheless it retains prices low by utilizing its expertise 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 create 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 traders due to astronomical funding minimums. They based Titan to interrupt by 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.
Not like a conventional hedge fund, Titan doesn’t add your cash to a pool with different traders’ and make selections for the entire fund. Your cash lives in your individual funding account, and Titan manages your portfolio in line with your particular funding targets and danger tolerance.
4 Steps to Begin Investing With Titan
- Open an account.
- Switch a minimal of $500 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 the Titan app. You’ll have to switch a minimal of $500 in capital from a linked checking account to start out 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 primarily based in your account steadiness, funding targets and danger tolerance.
As it really works for you, Titan advisers will hold 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 underneath 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 fee of return by investments in shares. Not like many brokerage apps, its portfolios don’t embody bonds or exchange-traded funds.
Titan Funding Methods
| Technique | Funding Description | Variety of Belongings | Minimal Web Deposits | |
|---|---|---|---|---|
| Titan Flagship | Giant cap U.S. corporations | 15 to twenty shares | $500 | |
| Titan Alternatives | Small/mid cap U.S. corporations | 15 to 25 shares | $500 | |
| Titan Offshore | International markets | 15 to 25 shares | $500 | |
| Titan Crypto | Currencies, NFTs, extra | 5 to 10 cash | $500 |
Titan makes use of the Flagship technique for all traders, and you’ll decide 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 a minimum of $10,000 into your Titan account or made two referrals to the app.
Hedging
What units Titan aside from competitor funding apps is its use of hedging, which makes use of a method known as shorting to guard your portfolio from market downturns.
Shorting means promoting a inventory at a excessive value that you simply count on to rebuy later at a lower cost for a revenue. The follow is thought within the business as draw back safety, or a technique to earn cash even when inventory values drop.
Titan hedges a portion of your portfolio primarily based in your danger tolerance.
When the market’s trying good:
- Aggressive: 0% of portfolio worth is hedged.
- Reasonable: 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.
- Reasonable: 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 moderately than the entire thing. Which means you possibly can personal items of extremely beneficial corporations 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, however it’s not a platform for self-directed investing. As a substitute, the app facilitates a cost-efficient relationship with private funding advisers.
As a result of the agency makes your funding selections for you — primarily based in your profile of economic targets and data you present and replace — it retains you within the loop on what drives these selections.
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 knowledge Titan’s crew of consultants makes use of to decide on the place to take a position your cash, and these updates can assist you affirm it’s technique is in keeping 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 corresponding to most robo-advisers.
Titan Make investments Options
| Characteristic | Particulars | |||
|---|---|---|---|---|
| Minimal funding | $500 | |||
| Advisory price | 0.7-0.9% of your AUM | |||
| Portfolio combine | Actively managed | |||
| Socially accountable portfolio choices | No | |||
| Retirement account choices | Trad., Roth, SEP or IRA | |||
| Faculty 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 help | [email protected] |
Minimal Investments
Crucial distinction between Titan and a typical hedge fund is the barrier to entry. Conventional hedge funds are accessible solely to accredited traders, who’ve earnings of a minimum of $200,000 per yr or $1 million internet value. Titan drops that restriction.
To take a position with Titan, you must make a minimal preliminary funding of simply $500 and be primarily based in america.
A brand new IRA additionally requires a minimal preliminary deposit of $500.
To incorporate the Alternatives and Offshore methods in your portfolio, you must have deposited a minimum of $500 into your Titan account.
Titan Charges
Much like most conventional and on-line Titan prices an advisory price that depends upon the dimensions of your account:
Underneath Titan’s previous price construction customers would pay $60 yearly or $5 per 30 days. Underneath their up to date construction, customers will spend 0.9% yearly, which implies that the advisory charges paid will decrease.
With the brand new construction, the advisory price will now be 0.7-0.9% yearly they usually cost 1/twelfth of that price each month. So for instance, if a person had $1,700 of their Titan account, there could be an advisory price of round $1.30 per 30 days.
Not like 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 companies, Titan prices further charges for some unusual actions, together with:
- Debit card transfers: 0.25%
- Outgoing wire switch: $25 home, $45 overseas
- Outgoing ACAT transfers: $100 per account
- Paper statements: $5 per assertion
- IRA termination: $100 per account
Portfolio Combine
Titan invests your cash in line with your monetary and danger profile, which is predicated on info you’ll share whenever you join, in addition to monetary info you possibly can replace as you go (like your earnings).
Primarily based 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 unique kind of asset:
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
Via Titan, you possibly can open a taxable account, an IRA or each. It provides conventional, Roth, SEP or SIMPLE IRAs.
An IRA enables you to make investments as much as an annual max quantity ($6,500 as of 2023) in a tax-advantaged funding account. Contributions to a conventional IRA are tax-deferred till you withdraw. Contributions to a Roth IRA are taxed now however not whenever you withdraw. SEP and SIMPLE IRAs are accounts that observe the principles of conventional IRAs and are designed for self-employed staff.
Faculty 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 kind of rebalancing that offsets your whole capital features by promoting related property 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 verify 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 danger profile.
That’s as a result of these proportions might be thrown out of whack when sure shares develop and others lose worth. That would have an enormous portion of your portfolio invested in a single enterprise sector, for instance, which will increase your danger for loss if that sector tanks.
Rebalancing sells off some property 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 selections, together with rebalancing, for you, so that you don’t have to fret about it.
Human Advisor Possibility
Investing with Titan connects you with an funding crew of actual, human registered funding advisers, who actively handle shopper portfolios primarily based on 4 set methods.
As a Titan shopper, you’ll get updates from the agency’s advisers about exercise on the earth of enterprise and finance that impacts their funding selections. However you gained’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 record a customer support cellphone quantity.
Execs and Cons about Titan
These execs and cons might enable you resolve if Titan is the best funding platform for you.
Execs
- Potential for larger returns than with typical funding apps.
- Entry to hedge-fund methods for non-accredited traders.
- Actual-time updates about market strikes that drive funding selections.
- No lockups. Withdraw cash anytime inside two to 4 enterprise days.
Cons
- Greater danger on account of hedge-fund methods.
- No self-directed investing.
Incessantly Requested Questions (FAQs) About Titan
We’ve answered among the largely generally requested questions on Titan.
All investments include some quantity of danger of dropping worth, and hedge-fund methods have a tendency to hold higher danger in alternate for larger potential returns. Nonetheless, your cash with Titan is protected, like all funding accounts, in opposition to enterprise failure by SIPC insurance coverage as much as $500,000. Crypto property in a Titan account aren’t lined by SIPC insurance coverage.
No. A fund is a shared pool of traders’ cash that an funding agency makes use of to purchase equities, and all traders get the identical remedy. With Titan, you have got a private funding account, and your cash is invested in line with your particular person monetary targets and danger tolerance. Titan is an funding advisory agency.
How A lot Do You Must Spend money on Titan?
Titan’s minimal preliminary funding quantity is $500 to open a brand new account and entry all methods.
Sure, the advisory price per shopper is 0.7-0.9% yearly they usually cost 1/twelfth of that price each month.
Is Titan Accessible Outdoors 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 Instances, CNBC, The Motley Idiot, The Penny Hoarder and a column for Inc. Journal. She based Wholesome Wealthy to publish tales that illuminate the variety of {our relationships} with work and cash. Contributor Caroline Gaspich contributed to this report.
