Show IH: Looking for feedback on passive investing product
https://www.enzo.fund
👋 Hello!
I recently posted on IH about Sutori, a product my co-founder and I launched. Whilst building the business, we started to save some money and we realized there wasn't a product built for us in the EU to invest our savings and be better prepared financially for our future.
Here's the link to our homepage: https://www.enzo.fund
Specifically, I'd like to know if you understand what we're trying to achieve. Do you understand the calculator/graph? Am I missing anything obvious? Is it easily readable in your browser?
Thanks so much and look forward to hearing your thoughts.
The graph is clear, but I guess you mean "earned" rather than "saved". If I save $200 per month for 10 years, I would have ended with 200*120 = $24000 + ROI on from the Index fund.
Why would I pay interest Enzo to invest $200 per month for me rather than doing everything myself and saving even more money? Do you save people time? Do you offer security? Do you make me more money?
In rest, the website looks good. Keep up the work!
Thanks @scooch for the feedback.
Yeah I see what you mean. I think what we're trying to achieve with this is to say to our potential customers that we're better than a savings account which is what many Europeans do - they just leave the money on their savings account rather than passively investing it. It's not as widespread as in the US but I think we can play around with the wording as you suggest.
The main core of Enzo is that as a user, you don't have to define your portfolio, find a broker and be knowledgeable about taxes. In Europe, we still don't have the equivalent to a Wealthfront and acquiring this financial knowledge takes a lot of time, perseverance and a certain confidence in your own capacity for making good decisions so that's why Enzo exists - to handle everything for you so you can sit back, relax and focus on saving time & making money as a result over the long-term. As for security, that's an interesting point as we're still figuring out how to acquire a license to handle people's money (it's currently the biggest stumbling block). In order to do so, we need to partner with a broker and once we do that, money is protected up to 100,000€ which is standard EU legislation.
Appreciate the comments!
Yes, pretty clear. Readable in my browser, looks good.
What's the value that Enzo adds on top of a direct investment in index funds?
Thanks for the comment @kirobaito and happy the graph is clear. When we started thinking about launching a product like Enzo and dug into the world of investing, we soon realized how difficult it is to get started. You have to define your portfolio, find a broker and be knowledgeable about taxes. In Europe, we still don't have the equivalent to a Wealthfront (or similar org) and acquiring this financial knowledge takes a lot of time, perseverance and a certain confidence in your own capacity for making good decisions.
At Enzo, we want to take care of all the above and make sure our users are getting real value for their money and the peace of mind to not worry about the re-balancing of their portfolio and knowing when to buy and sell or how to handle taxes. For us, it's all about educating our future users on the benefits of financial well-being and I hope they will see value in going with us once we launch.
Do you invest in index funds?
I'm in US, and I do invest in index funds, mostly through Vanguard (and some thru Betterment). I'm not familiar with the situation around index funds in Europe, so can't comment on what value you might be providing there - I guess I might be taking the services provided by the likes of Vanguard for granted - they take care of most of the things you listed, and I'd be hard pressed to come up with how much more I need from them in terms of "passive" investment. I put a bit of money into Betterment just to give them a try, but not seeing a ton of added value from them over just putting money in Vanguard, to be honest. They both are pretty easy to use, especially since it's a passive "set it and forget it" investment.
Thanks @kirobaito - this is helpful and happy to see you're taking care of your finances in such a good way!
The graph looks a little strange. Usually you compare investment products to other index returns like the S&P500 or the CD rate. Why wouldn't you show real data vs models that show how your passive index idea works better? Without this type of data the graph looks highly misleading to me.
One other note is that you should check into Securities regulations. In the US you would probably be breaking half a dozen securities laws by making the investment return claims you have - without having a ton of disclaimers and legal filings in place. I'd suggest finding a securities lawyer.
Thanks for the feedback @jloha312 and providing your thoughts.
We're an EU based investment option similar to Wealthfront or Betterment. The graph is to compare keeping your money on savings accounts which is often done here compared to passively investing it through a portfolio like Enzo. You can read more about our future offering here: https://enzo.fund/why-you-should-passively-invest-your-savings
Considering we still don't have a license with the financial authority of the country we're starting from (Belgium), we're not offering our product yet so we can bypass having the legalese on the website for now. It's simply just a landing page to gather up feedback and see if there's a demand for a potential product like Enzo.
This comment was deleted 4 years ago
Hi @iann, thanks for the feedback. We're not particularly aiming to go after the customers who are already using Vanguard and passively investing their savings. We're targeting a segment of the population which aren't financially literate yet and wish to start financial planning and preparing for the future. Enzo will offer a hassle-free option which provides them educational content on how to save money but also makes them money over a long period of time and for them to reach their financial goals. It's a long shot and we still need to figure out how we're actually going to market to that segment!
How do you manage your investments? Do you use a broker and run everything yourself?