SoFi (NASDAQ: SOFI), the digital personal finance company, announced that SoFi Invest members will now be able to invest in select alternative investment funds, mutual funds, and money market funds.
With the launch of alternative investments, SoFi is granting everyday investors “access to the power to build and protect their wealth through investment opportunities traditionally reserved for the ultra wealthy.”
Initially, SoFi will offer over 6,000 different mutual funds “to members on the SoFi Invest platform, as well as access to invest in the ARK Venture Fund, Carlyle Tactical Credit Fund (CTAC), KKR Credit Opportunities Portfolio (KCOP), as well as Franklin Templeton’s Clarion Partners Real Estate Income Fund (CPREX) and Franklin BSP Private Credit Fund (FBSPX).”
These funds feature a unique lineup of assets, “including private credit, real estate and pre-IPO companies offering a diverse mix of investing opportunities.”
SoFi will roll out access “to alternative investments, mutual funds and money market funds to all SoFi Invest members over the coming days.”
Anthony Noto, CEO of SoFi, said:
“Our goal at SoFi is to empower our members to get their money right so they can achieve financial independence. We know investing is critical to building wealth, but many investment vehicles are still not accessible to everyday investors. Introducing access to alternative investments continues our focus of offering access to investments that are usually reserved for the ultra wealthy, and allows us to provide our members with even more choice and flexibility when it comes to investing their hard-earned money.”
SoFi will continue to be a leader in affordable “investing by offering no SoFi transaction fees for mutual funds and no transaction fees for the new alternatives funds for the first 60 days. After this promotional period, SoFi will offer a competitive 0.50% purchase fee for the alternatives funds with low minimum investment.”
Traditionally, alternative investments have “the potential to provide uncorrelated returns compared to traditional investments and offer opportunities to invest in private companies and assets with significant growth potential.”
Until recently, many investors “haven’t been able to invest in certain of these funds, which limited their ability to diversify investments with alternatives. SoFi Invest offers a wide range of investing tools from traditional stocks to ETFs to robo-investing, access to IPOs, and now will include mutual funds, money market funds, and alternatives funds across a broad range of categories including commodities, currency alternatives, and venture capital. SoFi is the only digital finance app that allows its members to borrow, save, spend, invest, and protect their money all in one place.”
Alongside access to alternative investments, SoFi is also “launching an educational hub to help investors better understand these investment vehicles.”
The educational hub will cover topics such as the basics of “what alternative investments are, how they work and fit into a portfolio, and be available to any investor, not just SoFi members.”
Additionally, SoFi offers all members complimentary “access to Certified Financial Planners (CFPs) to discuss their full financial plans and goals to ensure they are making the right moves for their goals and needs.”