Kwala review
- Investment product
- Shares, ETFs, Managed Funds
- Minimum investment
- $10
- Number of portfolios
- 1
- Fees
- From $2/Month
Our verdict
Kwala is a micro investment platform that may appeal to ESG investors
Kwala is the latest micro investment app to hit the market, offering its customers a low cost starting point into investing.
But Kwala's unique selling point to its members is all their investments are focused on environmental, social and governance (ESG). This unique proposition is both a strength and a weakness. Given its positioning, you own a lot of technology companies.
On the plus side, it will help with the "sleep at night" factor and beyond "doing the right thing" in a bull market, you will have the chance to outperform. Especially if some of the businesses you own become sector winners.
On the downside, these same tech-heavy portfolios could struggle in a bear market. As such, if you sign up to a product like this you should have a long-term investment horizon.
Pros
-
ESG focused
-
Investing in a lot of tomorrow's structural winners
-
Low cost to start
-
Will help start good investing behaviours such as dollar cost averaging
Cons
-
Exclusion of stocks can mean you are less diversified
-
Fees are high if you invest the very minimum
About Kwala
Kwala is an actively managed fund that invests in a number of companies based on few key metrics including performance, social contributions, taxes paid on profits and how businesses align with United Nations Sustainable Development Goals.
The fund invests your money both in Australian and international stocks, with investors ultimately owning companies with high environmental, social, health or technological attributes.
Key benefits
Responsible investment options
If you are investing with Kwala you're actively choosing to avoid a bunch of industries.
There are 2 types of ethical screens: positive and negative screening.
In the case of Kwala you are negatively screening, meaning you are avoiding companies that are "doing the wrong thing".
To see our full explanation of ethical screening click here.
In the case of Kwala you are screening out:
- Alcohol
- Gambling
- Adult entertainment
- Tobacco
- Harmful media
- Animal cruelty
- Fossil fuel mining
- Production and intensive usage
- Nuclear energy
- Deforestation
- Ocean exploitation
- Controversial weapons
Auto investing
One of the handy features Kwala offers is its auto-investing function.
This starts from as little as $10 per transaction. You have no ongoing fees when you transact, as the app only charges you a monthly fee.
You choose the amount and time frame (weekly, monthly or yearly) and your account will automatically be debited.
Low minimum deposit
If you're new to investing or just want to dip your toes into your next investment, this feature will appeal to you.
Kwala lets you start investing from just $10, although keep in mind paying $2 a month on a $10 investment is relatively expensive. So it is important to lift your balance in order to reduce the percentage of your holdings that are paid in fees.
Kwala One Fund
The Kwala One Fund allows you to invest in a mix of Australian and international equities, holding only 2% cash.
It actively manages the funds for you.
This means you will own a mixture of exchange-traded funds (ETFs) and shares based on the app's investment committee.
But the higher holdings of shares come with higher risks. As such, you should have a long-term time horizon if you want to invest with Kwala.
What are you actually investing in?
When you sign up with Kwala your funds are put into 1 account that owns a mixture of ETFs and individual shares.
Being an ESG provider, it's probably no surprise that you own a lot of technology companies.
The ETFs you will own are:
- VanEck Semiconductor ETF
- Global X Robotics & AI ETF
- Nanuk New World Fund ETF
- KraneShare Global Carbon ETF
- BetaShares Global Cyber Security ETF
- Global X CleanTech ETF
You will also own businesses that are working on the transition to net-zero.
Who should use it?
Kwala is trying to appeal to 2 types of investors.
Firstly, it is aimed at those who would use a micro investing app. If you're someone who is just starting out, has a smaller balance or wants to automate your investing decisions, then a micro investing app like Kwala would suit your needs.
In the case of Kwala though, it has an ethical bend as well. This means if you're someone that wants to invest in ethical based shares and ETFs this will also appeal to you.
Is it safe for beginners?
Micro investing apps as a whole are targeted towards beginner investors, with the aim of getting everyone started in investing.
Kwala is no different.
It will let you gain access to the market for just $10 compared with many brokers that require you to have a minimum $500 per trade.
As such, you can obviously start with less. Therefore, you will have less to potentially lose.
It is also safe for beginners because the app will do all the work for you.
Instead of new investors having to pick what they want to invest in, Kwala has a predetermined fund. This means all the investments are done on your behalf.
Fees
Kwala has an incredibly simple fee model. The more you have, the more you have to pay per month
| Account balance | Monthly fee |
|---|---|
| $10–$4,999 | $2 |
| $5,000–$15,000 | $3 |
| More than $15,000 | $4 |
In addition, it charges 0.49% p.a. indirect costs on the portfolio balance.
With the fee structure, generally speaking, the more you invest the less it costs you as a percentage.
How to get started
You will be able to get started relatively quickly following a few steps on your mobile phone.
- Download app from the app store
- Create an account including verifying your account
- Read the PDS
- Enter basic information such as your name, date of birth, tax status and address
- Choose your investment options – ETFs or individual shares
- Choose how much you want to invest each day, week or month
- Transfer funds
Support
If you run into any trouble there are a couple of options including:
- Online support
- Frequently asked questions
Compare robo-advisors
Your reviews
Cameron Finder
Writer
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