Titan Invest Review 2022 | Hedge-Fund Style Investing For $100

If you wish to make investments like a hedge fund, you would possibly suppose that you simply want tens of millions of {dollars} or to have the fitting connections.

Nonetheless, corporations like Titan are working to alter this. This actively-managed investing platform invests like hedge funds, aiming to outperform the market to maximise returns for buyers.

Granted, this distinctive investing strategy is not for everybody, and better charges include the territory. Our Titan evaluate is overlaying how this revolutionary firm works, what the professionals and cons are, and find out how to determine if it is best for you.

Execs & Cons

Who Is Titan For?

Traders who’re snug with extra threat for greater potential returns are Titan’s clients. This actively-managed investing platform seeks to outperform the market.

To perform this objective, Titan invests in small teams of shares or cryptocurrencies, so you do not get the identical stage of diversification you do with ETF investing. This technique, compounded with brief promoting for draw back safety, is how Titan is completely different from its opponents.

What Makes Titan Nice?

Titan is actively managed, and the corporate tracks what main hedge funds are shopping for and promoting through the use of SEC filings and invests in related corporations. The corporate additionally hedges investments by shorting a proportion of your portfolio relying in your threat tolerance. That method, a few of your portfolio nonetheless advantages even when markets go down, which is how hedge funds function.

These practices are why Titan is sort of a hedge fund, though the corporate stresses the way it’s neither a hedge fund nor a robo-advisor.

This investing model can also be what makes Titan distinctive. You get an actively managed fund that is just like hedge funds with out the requirement of investing tens of millions of {dollars} or being an accredited investor.

A number of Investing Methods

Titan at the moment has 7 completely different methods you possibly can make investments with:

• Flagship: Titan’s first portfolio that is comprised of huge cap U.S. corporations. This portfolio goals to outperform the S&P 500 and consists of a number of the largest U.S. corporations.
• Alternatives: Contains smaller U.S. corporations with extra development potential.
• Offshore: A world-only portfolio that invests in growing markets like China and Latin America.
• Crypto: Titan’s crypto fund invests in roughly 5 to 10 main cryptos.
• ARK Enterprise Fund: This fund companions with Cathie Woods ARK Make investments to spend money on a portfolio of roughly 40 publicly traded corporations in a VC-style mandate.
• Apollo Diversified Actual Property Fund: The objective of this fund is to generate earnings and capital appreciation via non-public actual property funds and public actual property securities.
• Tactical Non-public Credit score Fund: This fund goals to supply earnings through the use of Carlyle’s International credit score platform to spend money on a spread of credit score sorts.

You possibly can make investments with one or a number of Titan methods. And its web site shares extra details about historic efficiency and holdings for a few of its predominant methods:

One draw back is that there is a very restricted monitor report for all of the methods. That is very true for ones that launched just lately, just like the ARK Enterprise Fund.

Flagship and Alternatives methods have sturdy returns inside the previous couple of years, whereas Offshore is dreadful. And whereas Titan Crypto started in a bull market, crypto winter has seen this portfolio lose over 50% of its worth on the time of writing.

Nonetheless, having a number of choices continues to be a bonus since you possibly can diversify your portfolio with these completely different methods. And since Titan actively managed funds, it additionally makes use of practices like quarterly portfolio rebalancing and tax-loss harvesting to assist maximize returns.

Hedged Investments

One distinctive side of Titan is that it supplies draw back safety via hedging for its fairness methods. The corporate shorts a sure proportion of your portfolio relying in your threat tolerance. Due to these brief positions, you possibly can doubtlessly nonetheless earn earnings even when the market declines.

Hedging is why hedge funds have their identify. The principle attraction of this technique is that it helps restrict the affect of market volatility and helps buyers generate returns persistently.

Funnily sufficient, many hedge funds truly fail to outperform index funds or the S&P 500. Warren Buffett famously proved this after profitable a decade-long wager that passive investing would beat most hedge funds. However many buyers do not thoughts this reality due to the draw back safety and potential for extra constant returns.

Titan claims hedging is the explanation it was ranked the #1 funding advisor out of 60+ others for fairness returns throughout Covid 19, though it does not state the place this rating got here from.

Titan Crypto Investing

Titan’s latest technique is crypto, and this can be a profit if you wish to add digital belongings to your portfolio however do not know the place to start out.

Many robo-advisors and funds are nonetheless behind on true crypto investing. Certain, they may spend money on funds just like the Grayscale Bitcoin Belief, however they don’t seem to be shopping for altcoins or actually diving into crypto.

In distinction, Titna Crypto is a basket of 5 to 10 cash that the staff believes are positioned for long-term returns. Primarily, these are cryptos that Titan thinks will nonetheless be market leaders throughout the subsequent 3 to five years. Titan additionally considers components like liquidity, regulatory issues, and general threat versus reward when figuring out asset allocation.

And Titan goes for large-cap cryptos, not random altcoins which might be unproven. This consists of apparent decisions like Bitcoin and Ethereum in addition to promising cash like Cardano and Solana.

You continue to get far more management and choice if you happen to use a crypto alternate like Coinbase or Gemini to commerce. However the reality Titan has an actively managed crypto fund is pretty distinctive.

Low Investing Minimal

You solely want $100 to take a position with Titan. That is barely greater than most on-line inventory brokers which have a $0 minimal. Nevertheless it’s nonetheless a superb strategy to make investments with little cash, which you would not anticipate from an actively managed fund.

Notice that Titan Alternatives and Titan Offshore require $10,000 to start out investing.

Titan Money

One new Titan investing technique you need to use is Titan Money. This allows you to earn 2% APY in your idle money if you happen to make investments not less than $1,000 with Titan. You earn the two% fee as much as $10,000, after which level your rate of interest drops to 0.50%. Your cash additionally will get as much as $250,000 in FDIC insurance coverage.

This fee is not as excessive as many high-yield financial savings accounts available on the market. And robo-advisors like Wealthfont have Wealthfront Money that permits you to pay payments and earn a better APY on the time of writing. However Titan did not all the time have a money administration account sort of providing, so that is an improve to the platform.

Obtainable Accounts

You possibly can make investments via particular person taxable accounts or retirement accounts like conventional, Roth, and inherited IRAs. It additionally helps 401(ok), IRA rollovers, and 403(b) accounts.

Fractional Shares

One other benefit is that it helps fractional shares. This allows you to put your whole capital to work so you do not have heaps of idle money sitting on the sidelines.

That is additionally essential since methods just like the Flagship portfolio spend money on main, giant cap U.S. corporations the place inventory costs could be lots of or 1000’s of {dollars}.

No Lock-Up Interval

Titan does not require locking in your cash, and you’ll withdraw funds anytime. Withdrawals take 2 to 4 enterprise days on common, so liquidity is not a priority.

What Are Titan’s Drawbacks?

In a crowded market of robo-advisors and on-line brokers, Titan is sort of completely different. It isn’t a hedge fund or robo-advisor, however somewhat an actively managed fund that borrows concepts from each side.

Nonetheless, regardless of its extra distinctive investing strategy, Titan is not with out some drawbacks.

Lacking Some Asset Courses

One benefit of utilizing robo-advisors like Betterment or Wealthfront is that you would be able to spend money on portfolios that produce other asset courses like bonds and even mutual funds in some instances. In distinction, Titan simply sticks with equities and, extra just lately, crypto, non-public credit score, and actual property.

The trade-off is that Titan ought to have greater returns on common than portfolios with a excessive bond focus. However having the flexibleness to decide on between safer fixed-income investments and fairness investments would possibly attraction to some buyers.

Nonetheless, Titan’s continued enlargement of its investing methods has made the platform far more sturdy than when it first launched.

Annual Administration Charges

Titan fees $5 per 30 days on accounts with belongings beneath $10,000 and 1% yearly in case you have over $10,000 in belongings. It does not cost efficiency charges like hedge funds, however paying 1% yearly is excessive versus most robo-advisors.

For instance, Betterment and Wealthfront every cost 0.25% yearly; 4 occasions decrease than Titan.

Granted, Titan is actively managed, however issue within the greater charges when deciding if it is price it.

Restricted Historic Efficiency

One of many predominant downsides of Titan is that its portfolios have restricted monitor information. And that is obvious if you have a look at funds like Titan Crypto. The highly-anticipated fund boasted over 300% in annualized returns shortly after launching, however as of late, the common annualized return fee is about -50%.

That is nonetheless a superb fee of return for a lot of buyers, however it reveals how brief time intervals can dramatically change the numbers.

Titan Charges & Pricing

Titan has two completely different pricing fashions relying in your whole account stability:

• Underneath $10,000: Pay $5 per 30 days.
• Over $10,000: Pay 1% in annual administration charges.

Notice that Titan considers the whole worth of your belongings beneath administration, not particular person accounts. So, in case you have $5,000 in a Titan Flagship portfolio and $10,000 in Titan Crypto, you pay 1% on the whole stability, not $5 on the Flagship account and 1% on the Crypto account.

Learn how to Contact Titan

You possibly can contact Titan by emailing assist@titan.com. You may as well message buyer assist via Titan’s Android and iOS app.

Is Titan Secure & Safe?

In accordance with its web site, Titan protects your private and monetary info through the use of SSL and 256-bit encryption. It is also registered with the SEC, and accounts stand up to $500,000 in SIPC insurance coverage. Total, this makes Titan protected and safe, and it follows related practices as different FinTech corporations.

The corporate additionally states that it could unload all securities and return funds to shoppers within the occasion it shuts down. Nonetheless, know that each one investments carry a point of threat and that Titan does not assure future efficiency or that your portfolio cannot decline in worth.

Finest Options

If you need hedge-fund model investing and imagine in lively administration over passive investing, Titan is a wonderful alternative. Few choices available on the market use shorting as a type of draw back safety, and the $100 minimal funding requirement means anybody can realistically get began with Titan.

That stated, Titan’s predominant drawbacks are its restricted efficiency historical past and the 1% annual administration payment. If you need longer-standing corporations and decrease charges, we predict robo-advisors are a better option.

This is how Titan compares versus alternate options like Betterment, Private Capital, and Wealthfront.

For instance, Betterment is our favourite robo-advisor, and it has a $0 funding requirement. And with 0.25% for annual charges, it is extra reasonably priced that Titan. You additionally get entry to extra portfolio selection, together with ones for socially accountable investing and fixed-income.

Wealthfront can also be a superb different because it’s low-fee. There is a $500 minimal requirement, however Wealthfront additionally provides you extra management over the ETFs which might be in your portfolio.

Lastly, Private Capital is a complete wealth-management instrument that is ideally suited in case you have over $100,000 to take a position. It isn’t truly a robo-advisor, and also you get entry to human advisors via its wealth administration service. There is a 0.89% annual payment, which continues to be lower than Titan and cheaper than many monetary advisors. Plus, the platform has loads of free instruments like a retirement planner and funding payment analyzer which might be helpful.

To be clear, Titan invests in a different way than these platforms due to the way it mirrors hedge funds and makes use of shorting for draw back safety. If this model is what you are in search of, go together with Titan. However for decrease charges and passive investing, robo-advisors or corporations like Private Capital are superior.

Backside Line

It isn’t fairly a hedge fund, and it is undoubtedly not a robo-advisor. However Titan is an thrilling and completely different choice for buyers with some promising methods.

Solely time will inform how Titan’s methods play out versus general market returns and extra passive investing. It is proven early indicators of success for some funds, and poor returns in others. Nonetheless, with a $100 minimal and brief promoting that is tailor-made to your threat tolerance, it is one of the simplest ways to take a position like a hedge fund with out having quite a lot of capital.