Build Wealth on Autopilot: The Smart Way to Start Investing with Raiz.

Melissa Best
May 25
4 min read

If you've ever felt like investing is only for the wealthy or financially savvy, you're not alone. Many people put off investing because they think they need thousands of dollars or a degree in finance to get started. The good news? Platforms like Raiz are changing the game — making investing simple, automatic, and accessible to everyone.

Welcome to the world of micro-investing.

What is Micro-Investing?

Micro-investing is exactly what it sounds like: investing small amounts of money, often automatically, into a diversified portfolio. Rather than setting aside a big lump sum, micro-investing allows you to grow your money gradually — even with just a few dollars at a time.

And that’s where Raiz comes in.

What is Raiz?

Raiz is a popular Australian micro-investing platform that allows you to invest your spare change. It connects directly to your bank account and automatically rounds up your daily purchases to the nearest dollar, investing the "spare change" into a diversified portfolio of exchange-traded funds (ETFs).

For example:

You buy a coffee for $4.50
Raiz rounds it up to $5.00
The extra $0.50 is invested on your behalf

It's investing in the background — without you needing to think about it.

Why People Love Raiz

Set & Forget Simplicity: Raiz is perfect for people who want to start investing but don’t know where to begin. Once it's set up, it runs in the background — rounding up your transactions and investing the difference.
Low Barrier to Entry: You can start with as little as $5, making it one of the most accessible investment tools available.
Diversified Portfolios: Raiz offers a range of portfolios — from conservative to aggressive — tailored to your risk tolerance. These portfolios are made up of ETFs that invest in Australian and international markets, bonds, and cash.
Custom Contributions: You can set recurring investments (weekly, fortnightly, monthly) or make one-off deposits in addition to round-ups.
Financial Education & Insights: The app offers handy insights into your spending habits, investment performance, and even features like a rewards program that gives you cash back (which goes into your investment account!).

Is Raiz Right for You?

Raiz is ideal for:

New investors who want a hands-off way to begin
Busy professionals who don’t have time to manage complex portfolios
Young adults or students looking to build good financial habits early
Anyone who wants to make their money work harder in the background

It's also a great psychological tool: seeing your investments grow, even from a few cents at a time, builds confidence and reinforces positive saving behavior.

Planting the Seeds Early: Investing for Your Kids with Raiz

Raiz isn’t just for adults — you can start building your child’s financial future today with Raiz Kids. This feature lets you invest small amounts in a portfolio under your child’s name, all from your main Raiz account.

Raiz Kids allows you to:

Create a portfolio under your child’s name
Invest small, regular amounts (even $5 a week!)
Easily track performance and add top-ups
Nominate one or multiple children to benefit from the same portfolio

These portfolios are linked to your own Raiz account, and you maintain full control until you're ready to transfer it to them (usually when they turn 18).

The power of investing for your child lies in one magical concept: compound interest.

Let’s break it down simply:

Compound interest means you earn interest not only on the money you put in, but also on the interest that money earns. Over time, your money begins to snowball, earning more from the previous earnings.

Imagine you invest $10 per week from the time your child is born until they’re 18. That’s $520 per year, or $9,360 total contributed over 18 years.

Now, assuming an average annual return of 7% (moderate Raiz portfolio), that small weekly habit could grow to over $17,000 by the time they turn 18.

Not bad for coffee money!

If you increased that to $20 a week, you’re looking at potentially $34,000+ — giving your child a serious head start for uni, their first car, or even a house deposit.

How Much Can Raiz Portfolios Return?

Raiz offers a range of portfolio options, from conservative to aggressive. Historical performance has varied, but here are some approximate average annual returns (as of recent years):

Conservative Portfolio: ~2–3% p.a.
Moderate Portfolio: ~5–6% p.a.
Aggressive Portfolio: ~7–9% p.a.

Keep in mind: these are long-term averages, and markets can fluctuate year-to-year. But the longer your money stays invested, the more chance it has to ride out volatility and grow.

Things to Keep in Mind

Fees: Raiz charges a flat monthly fee of $4.50 for accounts under $20,000 and a 0.275% annual fee for balances over $20,000. For very small balances, these fees can eat into your returns — so it’s important to invest consistently or combine Raiz with a long-term savings plan.
Market Fluctuations: Like all investments, the value of your portfolio can go up and down with the market. While Raiz portfolios are diversified, they are not risk-free.

Micro-investing with Raiz isn’t about getting rich overnight. It’s about building habits, creating consistency, and making your money work for you — even when buying your morning coffee.

Whether you’re just getting started or looking for a simple way to complement your existing financial strategy, Raiz offers a user-friendly path to growing your wealth in the background of your everyday life.

Sometimes, small steps lead to big gains.

If you would like to set up an account with a $5 credit - you can do so here.

Have you tried Raiz? Share your experience or questions in the comments below — or send this to a friend who wants to start investing but doesn’t know where to begin.

Disclaimer:

The information in this blog is for general informational purposes only and does not constitute financial advice. I am not a licensed financial advisor, and this content should not be relied upon as a substitute for professional advice tailored to your individual circumstances. Always do your own research and consult a qualified financial professional before making any investment decisions.