In January of this year alone, investors invested €200 million in Scalable Capital's robo-advisor. The Munich-based fintech increased its managed capital by nearly 10 percent in just one record month.
How Finance Fwd reported, customers of the fintech Scalable Capital invested more money in January than in any previous month. A full €200 million flowed into the Munich-based company, bringing the investment volume to €2.263 billion. According to the founder, his startup needed another year to raise the first hundred million. Erik Podzuweit to the online medium:
“The very rapid growth in January surprised even us a little.”
Record month: Customers invest at the wrong moment
Podzuweit reports that customer demand tends to rise during periods of high stock market activity and decline after periods of weaker stock market activity:
“When the markets collapsed in 2018, it became more difficult to attract customers.”
However, periods of low stock prices are better suited for starting to save with ETF funds, as price gains are more likely during these periods. However, many experts generally advise private investors to adopt a so-called buy-and-hold strategy: buying stocks and holding them for decades. The temptation to achieve better returns than the market average through supposedly cleverly timed stock purchases and sales often harms one's own investment. Podzuweit recommended in a Interview with Munich Startup Therefore, it is important to "de-emotionalize investing" and hand it over to an algorithm. This way, investors avoid making wrong decisions due to false euphoria or inappropriate panic.
