M1 Finance, a popular free robo-advisor, just announced that they’ve reached $2 billion in assets under management (AUM). That may not sound shocking because many robo-advisors have billions in AUM. The real news is how fast M1 has skyrocketed this year.
M1 announced $1 billion in AUM just a few months ago, at the end of February. Then the economy was shut down, and millions of people were left financially insecure. The financial chaos might’ve been the perfect storm for a rising company like M1 to shine.
What is M1 Finance?
M1 is an investment platform and money management app all in one. With an M1 account, you can spend, save, invest, and borrow money with ease. M1 Invest offers you a choice of expert-designed pies that are made up of different stocks and ETFs. Investors can choose a pre-built pie or choose from 6,000+ stocks and funds to build their own investment pie.
M1 Invest provides investors with the perfect combination of ease and control. If you’re new to investing, you can trust that the different investment pies are designed to grow your money. More experienced investors also have leeway to choose the stocks they want to invest in. M1 also offers dynamic rebalancing to keep your investments on track.
The best part is there are no management fees. M1 has been on the top of our list of the best free robo-advisors, and will likely stay there for the foreseeable future.
What led to M1’s fast-track to $2 billion?
M1 was founded in 2015 by Brian Barnes, the current CEO, and has shown a solid record of successes since its launch. In Q1 2020, M1 saw over 118,000 new accounts opened, which is over double what they saw in Q1 2019. Plus, M1 investors are seeing growth in their portfolios and telling their friends about it.
In July, M1 raised $33M in its second round of Series B funding, led by Left Lane Capital. That added to the $22M previously raised and is empowering M1 to continue improving and remain on the cutting edge.
M1 offers a user-friendly mobile app that allows investors to save and invest on an automated schedule. Managing money can be a headache, and fees can eat away at your gains. Instead of paying for a financial manager, M1 allows people to invest their money right from their smartphone. Automated investing and money management removes the burden of making transfers and deciding which stocks to buy or sell, or paying someone else to do it.
Many people are searching for an easy way to manage their finances, and it’s a huge bonus when there aren’t any fees. M1 is a great tool to manage everything—investments, IRAs, loans, and cash, all on one simple dashboard. Instead of checking three different apps, you can get a quick snapshot of your finances.
M1 is showing no signs of slowing down anytime soon. We won’t be surprised if their AUM reaches towards the $2.5B mark by the end of the year.