Capital Markets Insights

Why Auto Invest is a Must-Have Feature in 2021

We are excited to announce our Auto-Invest functionality that will transform private capital markets.
Auto Invest is a platform feature that enables investors the ability to pre-select their investment criteria upfront and automatically participate in matching deals. When the “auto invest” algorithm is triggered to make an investment based on the pre-selected criteria, funds are automatically deducted from the investor wallet into the appropriate account.

Introducing Auto Invest provides the investor with many benefits, and it can make a huge difference in the amount of capital investors commit, their reinvestment rates, and the overall strengthening of the investor relationship. In this article, we will unveil all there is about this popular new capability:

  • How Does Auto Invest Work?
  • Benefits of Using the Auto Invest Feature
  • Auto Invest FAQ

How does Auto Invest work?

Auto Invest uses a complex Conditional Logic Investment Algorithm to deliver the optimal opportunities to investors each time in an automated format. Set time horizon, risk profile, sector preference, maximum investment amounts, and more to achieve investment goals and asset allocation.


Investor Benefits of Auto Invest

Auto Invest relieves investors of searching and selecting individual opportunities by letting the algorithm do the hard work. It also ensures that investors don’t miss out on opportunities that complete quickly from other investors. With Auto Invest, the investor only has to set the investment criteria once and monitor activity with the help of a comprehensive investor dashboard.

administrator dashboard

There are three main benefits that significantly improve investor experiences:

1) It’s intuitive and easy to use — while being safe

As we have described above, this feature makes investing simple, and almost “gamified” when compared to traditional investor workflows. The Auto Invest profile has a user-friendly dashboard, making the setup process easy even for users that are not tech savvy. Advanced security features such as 2 Factor Authentication and real-time email activity notifications also protect the investors’ account from unauthorized access. 

2) Eliminates human error: Auto Invest is faster and more reliable

The algorithm behind this feature finds the investment opportunities immediately as they become available at any time of the day and on any day during the week - much faster than an investor can scroll through and allocate funds. The algorithm also ensures accuracy throughout the transaction process and protects investors by always staying within their maximum fund allocations on a per deal basis. 

3) No manual searching: It matches optimal opportunities on its own

Auto Invest won’t allocate your funds on just any deal on the market if it doesn’t meet all matching  criteria — you are still the one that decides how you invest. However, you won’t have to micromanage every single investment transaction. Once you set up the investment amount, sequence, and parameters, Auto Invest is like investing on auto-pilot.

Auto Invest FAQ

What happens if an investor doesn’t have any funds to allocate? Auto Invest requires an investor to have a wallet balance which is used for the transaction. However, Auto Invest can adjust the investment amount based on the wallet balance if there are insufficient funds.

How does Auto Invest increase investor activity? Auto Invest is a highly engaging investor tool that is active even when the investor isn’t online. Investors are drawn into their dashboards to see new investment activity and earned interest payments.

Are there any compliance risks with using Auto-Invest? Holding investors’ money requires specialized financial licenses but it is possible to work with 3rd party firms to meet regulatory requirements as well. Consult your legal counsel to understand how you can leverage this powerful feature set with your investor base.

How can I ensure my investors not using Auto-Invest have a fair chance at getting allocations? The Auto-Invest algorithm can be configured so that all investors get a balanced and fair allocation into each respective deal based on the investor demand and desired investment amounts.

Interested to Improve Your Investor Servicing with Auto Invest? Contact us and Learn More!