Emperor Investments

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Fees and Deposit Limits

8.2/10

Flexibility

7.7/10

Ease of Use

8.3/10

Account Types and Services

7.4/10

Budget Flexibility

8.6/10

Pros

  • Pure equity investing
  • Direct ownership over the companies in your portfolio
  • Easy to use
  • Low minimum deposit

Cons

  • Slightly higher annual fee
  • Service lacks flexibility

2018 Emperor Investments Review

Emperor Investments iconDid you know the male emperor penguin is responsible for safeguarding the egg in the brood pouch as the female hunts for food? The Emperor Investments Robo Advisor is designed to do just that: to guard your nest egg. In this case, Emperor Investments offers automated equity investing to help achieve your goals.

The service builds exclusive pure equity portfolios, so you directly own the companies in your investment portfolio. Unlike other Robo Advisors that build portfolios based on ETFs, bonds, and commodities, Emperor Investments tailor-makes equity portfolios that are best suited for your goals. The equity stocks are handpicked and generated by Emperor’s “Dream Team” algorithm and are further personalized by investment experts to select the best option that offers a compelling value proposition.

Does this all sound confusing? Don’t worry; Emperor Investments not only gives you direct ownership over companies that you invest in, but your investment portfolio will be made up of companies that consistently pay cash dividends. This is a win-win situation.

If you want to give pure equity investing a try, Emperor Investments is a sterling choice. Allow us to dig deeper so we can determine the pros and cons of this unique Robo Advisor.

Emperor Investments Fees

fees priceLet’s begin our 2018 Emperor Investments review by discussing the fees and deposit limits. Since this Robo Advisor is designed for pure equity investing, you don’t need to worry about management fees that vary depending on your balance. With Emperor Investments, the fees and deposit limits are simple: you only pay a 0.6% annual fee with a $500 minimum deposit.

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Annual Fee

Now before you get excited, consider this first: Betterment and Wealthsimple charge lower fees with no minimum deposit. The minimum deposit is also higher than Swell Investing, since you can begin investing in socially-responsible companies for a minimum balance of $50 (although Swell’s annual fee is higher.) However, Emperor Investments will include personalized and tailored portfolios comprised of 100% stocks, dividend reinvesting, and automatic rebalancing. Your portfolio will only consist of dividend-paying companies and you won’t have to worry about hidden fees.

While the $500 minimum balance and 0.6% annual fee is not the lowest in the world of automated investing, it’s also not the highest, and Emperor Investments will make it easy for newbie investors to begin their journey into pure equity investing.

Equity Investing Comparison Chart

If you’re unfamiliar with pure equity investing and its benefits, have a look at this comparison chart, which compares Pure Equity Investing vs. ETFs and Mutual Funds:

Equity Investing comparison chart

Flexibility

flexibilityLooking at the service as a whole, it’s easy to misjudge Emperor Investments when it comes to flexibility. Since the service focuses solely on pure equity investing, some investors might find the service lacking. But the actual process of selecting the stocks and personalizing each for a particular investor makes it one of the most flexible robo advisors on the market today.

The biggest selling point of the Emperor Investments Robo Advisor is giving each investor direct ownership of the companies in their portfolio, with each portfolio tailored to your specific goals. This alone more than makes up for the purported lack of flexibility.

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Ease of Use

EasyEmperor Investments is simple and easy to use. You can get started by answering a few questions such as your age, primary source of income, total assets, and liabilities. The service then automatically creates your pure equity portfolio based on your answers. The portfolio will be composed of holdings in health care, food and beverage, utilities, personal and household goods, industrial goods and services, and chemicals. After signing up, all that is required is to make the initial deposit so you can enjoy the benefits of pure equity investing.

But how does it all work? Emperor Investments utilizes a unique two-step approach to build a Dream Team of companies for your portfolio. The first step is to look for companies that have paid uninterrupted dividends for a very long period and those that are likely to continue to pay dividends in the future. The service will also start looking for stocks that can be purchased at a fair price. The second step will utilize the services of in-house financial experts to filter the companies with a compelling value proposition and a quality management team.

If you decide to start investing with Emperor Investments, the service will start by getting to know more about you and your financial goals so the robo advisor can select the stocks that suit your goals. Unlike other robo advisors that focus solely on ETFs, Emperor Investments strives in providing the best performing portfolio in a user-friendly approach. They also claim equity portfolios had lower volatility and historically outperformed ETFs based on initial forward testing.

Account Types and Services

Emperor Investments is all about pure equity investing. No ETFs and no mutual funds. Others might say it is safer to invest in a portfolio of several different types of ETFs (since you are basically buying a whole collection of different stocks or bonds), but having direct ownership of the companies in your tailored and personalized equity portfolio is, without a doubt, a more exciting approach to automated investing.

Emperor Investments believes in the passive-active approach to earn the most from your investments. It’s all about balance. Traditional robo advisors are geared more towards passive investing and ETFs, which earns money based on the return of the index. But for investors who want a more customized portfolio from selected dividend-paying equities, Emperor Investments is the right choice.

When you think about it, owning businesses and corporations that consistently earn and pay out dividends is the best way to build long-term wealth. With this simple and yet unique approach, potential investors will have the ability to decide what companies are worth investing in. Emperor Investments also builds their own portfolios and will allocate specific types based on your preferences.

Suitability for Different Budgets

Investment BudgetsThe $500 minimum deposit might seem like a bit much for low-income investors looking to simply dip their toes into the water, but it’s a very reasonable minimum amount to invest to begin seeing results. In fact, it’s our opinion that seeing very low minimum deposits (such as $0 or $50) is simply a technique to get people to sign up for an account, but isn’t enough to see any real results from your investments.

The slightly higher 0.6% annual fee might be a turn-off for some investors who are planning to invest more money in their account. However, the service ensures no hidden management fees so you can work towards your financial goals without paying unnecessary fees in the process.

Overall, we feel like the fees and minimum balance are both reasonable for the service you get, and is well-suited for investors of all budgets.

Summary

Emperor Investments offers investors the chance to experience the equity advantage. We like the idea of having direct ownership of the companies in our investment portfolio, and we also like the reasonable $500 minimum deposit. The 0.6% annual fee is still up for debate, but this is acceptable given the unique and personalized experience that only Emperor Investments has to offer.