What’s a Motif Anyway?Traditionally, if you wanted to invest a sum of money, you would probably meet face-to-face with a financial advisor who would select a portfolio of stocks and bonds to match your risk tolerance level. This is still an excellent way to invest, but what if you’re the DIY-type and want to learn a bit about the investment process yourself? Well, you’d have a lot to learn. How much should you invest in emerging markets? How are large cap stocks doing? What’s an outrageous amount to pay in mutual fund fees? What are the best places to open a brokerage account? These are just a small fraction of the number of questions you might have to answer in order to construct a solid portfolio. If you don’t know much about that stuff, you’re not alone. It’s very, very difficult to create a comprehensive portfolio that’s tailored to your needs and risk tolerance level. That’s where Motif saves the day. Motif Investing allows you to invest online in things you already know and care about. For example, let’s say you study electric vehicles and think they are the way of the future. You can invest in a “Battery Charged” motif. Or, if you want to invest $5,000 into Apple, you can do that – you aren’t forced into buying a certain whole number of shares. You see, motifs are groupings of stocks that are based on a single idea or value. You could invest in a “Robotic Revolution” motif or a “Medical Devices” motif. Simply visit the Motif Investing website and search for what you want to invest in – you’re almost sure to find a motif related to your interests. This is cool. Really cool. Why? It gives the masses a way to invest in what they care about without having to understand the complexities of investing.
How Motifs Are ConstructedAs stated earlier, motifs are a basket of stocks based on a single idea. When you select a motif, you can read the full details about the motif. The stocks are grouped together into segments. For example, the “Robotic Revolution” motif is split into the following segments:
- Military & Defense
- Medical Applications
- Industrial Solutions
- Maritime Exploration
- Consumer Products
Under each segment are the stocks. You’ll know the exact companies you’re investing in and what percentage of the portfolio each stock represents.
Who Builds These Motifs?There are more than 150 professionally-built motifs. That might be an overwhelming number to sort through, but Motif makes it easy to quickly find what you’re looking for by separating these professionally-built motifs into categories:
- Income Strategies
- Trading Strategies
- Global Opportunities
- Asset Allocation
Yes, that means you can create your own motif and share it with your friends, family or fans. In fact, that’s exactly what I did. I chose a few stocks and created the Good Financial Cents motif. I have a whole bunch of goodies in this motif, including AT&T Inc. and Cincinnati Financial Corp., just to name a few.