Money is Like Oxygen, You Need it to Breathe – pt 1

What is an ETF?

The Bifrost Team

IMG_1242

MONEY IS LIKE OXYGEN, YOU NEED IT TO BREATHE - PT.1

Do you often feel as if the money you have isn't enough? Here's some relatively easy ways on what you can do to ensure you have money for what you really want.

By Martina, co-founder of Bifrost – Aug 25 2018

Money is something which affects almost every corner of every one’s lives. All the things we use have a monetary value, whether directly or indirectly. It surrounds us and is necessary for our survival, just like oxygen, and without it, life is often difficult and painful. Money is a resource and it helps you acquire other resources, whether you want to maintain your health, expand your knowledge through education, or achieve a new skill. With a little bit more of it, a whole lot of opportunities may present themselves.

According to The Guardian, more than 6 million British adults believe they will never be free their debt, where the average Briton owes £8,000. This issue is highly related to a small or nonexistent savings account. The Independent found that a quarter of Britons have no savings at all, and one in ten spend more than what they earn.

 

We at Bifrost have outlined three relatively easy steps which can help grow your bank account

  1. Smart Spending 
  2. Continues Saving
  3. Effortless Investing 

This article has been divided into three parts, and in this first part we will be discussing smart spending, which will focus on how to think when spending your wealth and how to cut down certain costs.

 

Smart Spending

Let’s dig into the first step, which relates to your expenditures. There’s a lot of different ways to spend your money, and there is a sea of items to spend it on. These items can be categorized, ranging from absolutely necessary, such as food, shelter and contributors to our health, to impulse purchases, such as a piece of clothing which will forever remain in the back of the closet after being worn once. If the latter purchase often occurs to you, then this part of the article is particularly relevant for you.

“Our range of options increase in relation to our wealth”

As a consequence of the wide range of options available to us, the way in which items are categorized is highly individual, and becomes even more so as our monetary resources increase. This is because our range of options increase in relation to our wealth. For example, food is something which everyone spends money on, but what grocery items or restaurants we choose to eat at varies greatly. Once more money becomes available to us, we might choose more expensive groceries and change the restaurants that we dine at.

Although the specific goods or services we choose to purchase are highly individual, the overall impulse purchases can be avoided. Spending in itself isn’t necessarily the issue, it is the thinking (or lack thereof) behind some purchases which is the problem. As portfolio manager, Kevin Mastaler, at Maclendon Wealth Management says: 

“Spending smart should not be confused with spending less. Spending smart is making the most out of your money. It is the act of allocating your spending in the most efficient manner”.

 

Here are some tips on how you can become a more conscious consumer and spend your money wisely

 
  • Save money on the small purchases, and do so often as it will eventually add up. 
  • Purchase quality items and services to avoid long-term high costs of replacing cheap goods over and over again.
  • Beware of how people around you affect your spending habits.

 

Cut down on your small expenditures

Firstly, by saving money on a small scale at a frequent rate, through avoiding frivolous purchases and small daily expenses, you may see a boost in your overall budget. Perhaps brewing your own coffee rather than purchasing it at a café, refilling a water bottle, or going to a cheaper hairdresser who does the job almost equally as well for half of the price, may be the solution for you. Or you can identify non-essentials and cut them out right away, such as entertainment and dining out. Continuously ask yourself the questions: Is this a necessary purchase or just a temporary want? And can I get this product or service at a cheaper price? Consider the cost vs. labor by asking yourself how much time it would take to earn the amount of the item. Do comparison shopping and avoid acting on impulse. 

Quality over Quantity  

Secondly, there is a large emphasis on the importance of quality. A cheaper option isn’t necessarily a better option. While it may save you some money in the short term, it may become a large expense further down the line if it requires consistent replacement. For example, it may be worth purchasing a good pair of shoes which will last for decades, rather than going for a very cheap pair with a material which frequently breaks. Therefore, you must both keep in mind the first advice of looking for cheap options, but also consider the long-term cost. Not only does this save you money, there are other benefits to it as well; such as saving you time to do shopping, less wasteful, and is in many cases more ethical. 

Don’t impress to success

Thirdly, notice how other people affect your spending. The average person spends far too much of their money trying to impress others, and 40% of millennial overspend to keep up with their friends. You may be familiar with Dave Ramsey’s quote: “We buy things we don’t need, with money we don’t have, to impress people we don’t like”. In fact, spending money on life experiences rather than material possessions is proven to increase your happiness, but research shows that this is not the case when the motives are to impress others. Forbes has outlined some advice on how to overcome this temptation, including setting a budget and cutting costs, as mentioned earlier.  

By spending wisely, you will have more money at hand which can instead be put it into your savings account. Stay tuned for our second part of this series where we will focus on how to save money more efficiently and to do so at a frequent rate.

 

Click here for further reading on spending advice.

 

What is an ETF.

WHAT IS AN ETF?

Ever wondered what an ETF is? Here, we provide a simple guide on the meaning of an Exchange Traded Fund and how it is traded on the stock market.

By Viktor Torstenius, co-founder of Bifrost – Aug 18 2018 

An exchange-traded fund is a fund traded on the common stock exchange. There are ETFs linked to countries, regions, industries, themes, and strategies (big cap, high yield etc., interest rates, currencies, and commodities).

The fund type is traded on the same terms by institutions and individuals. An ETF usually has one or more market guarantors who, during stock exchange opening hours, make buying and selling rates in the shares. The market guarantor continuously values the shares depending on how the fund’s holdings develop and thereafter sets a price to facilitate trading. The market guarantor can buy (redeem) shares against the fund company and then supply (receive) the corresponding share of the ETF’s portfolio. If the proportion becomes too cheap relative to the fund’s holdings, the market maker will buy shares and swap those with the fund’s holdings that can be sold more expensive in the market, and vice versa. The purpose of this mechanism is to create conditions where the shares are traded close to the theoretical value.

 

Advantages of an ETF:

  • End the deal the same day. In a regular investment fund, it often takes several days before the transaction is posted to the account or depository.
  • Purchases and sales can be made within the same trading day, known as day trading.
  • Usually lower management fees than ordinary investment funds.
  • Simply explained, ETFs are the best from the mutual fund (risk spread and simplicity) and combine it with the benefits of the shares (constant pricing and marketability).
  • Great opportunity to create advanced strategies and portfolios with specific focuses.
  • Since ETFs are many times index products that follow a given index, they provide relatively low asset risk.
  • Risk diversification.
  • Transparency.
  • Wide range.

 

Disadvantages of an ETF:

  • Hidden costs in the gap (spread) between buying and selling rates in the short-term business.
  • Returns from ETFs with daily leverage are consumed if the index fluctuates sharply. Funds with levers are therefore mainly a product for day trading.
  • The investor runs the risk that the party that guarantees the ETF’s underlying securities becomes insolvent.
  • Built-in levers often underperform their index.
  • Brokerage

 

A mixture of a fund and a share.

An ETF is a mix of a fund and a share, as it has a structure and risk spread as a fund, but at the same time a share’s liquidity and pricing. One of the tasks of the ETF is to follow a specific index such as the FTSE 100. Sometimes the high interest in ETFs is the low fees, which are the same for private savers and institutions, as well as the fact that most of the active funds are striking not its benchmark. The ETF market has become low, as more and more investors are discovering their benefits. In the video below, Bloomberg explains how ETFs work and how they can help you achieve better returns.

 

Index fund

In most cases, an ETF is an index fund. In an ETF you get the same risk spread as you get in a regular traditional index fund. An investment in an ETF means that you can easily and at low cost get immediate exposure to the market you have chosen to invest in. For example, it may be the stock or interest rate market in a region, a broad commodity market or a particular business sector.

ETFs usually reflect different indices and are thus a stock exchange version of index funds. They follow a certain index. An obvious advantage of ETFs is that they often charge a lower management fee than the corresponding index funds. One can, for example, Buy ETFs with a management fee of less than 0.1% for several of the world’s larger indexes.

 

ETF traded over the stock market

The big difference between an ETF and a common traditional index fund is that an ETF is traded on the stock exchange. This means that it is priced and can be bought and sold in real time, in the same way as a share.

An ETF, therefore, fits investors who are active with their investments and want to make use of market fluctuations according to their market position, as fast and easy as trading stocks. But an ETF can also be an excellent option for long-term savings, thanks to lower fees. ETFs are also subject to the same strict rules and supervision as usual traditional funds.

 

If you want to know more please visit the following:

Investopedia

What Is an ETF? An Infographic

How Hedge Funds Use ETFs

 

investing-for-humans

THE BIFROST TEAM

Welcome to Bifrost! We are excited to share our story with you and hope you will follow our journey.

By Bifrost – Aug 11 2018

Bifrost is an online investment platform. We help people achieve their financial goals by connecting them to wealth managers who provide tailored portfolios. We also provide a space for wealth managers to practice their profession with full control over the portfolios they offer, promoting independence and providing an easily accessible client pool. 

Bifrost began in the late 2017 as the brainchild of seven students at the University of Glasgow. We shared an ambition to improve the financial world. Our diverse backgrounds, experience and expertise offered a unique opportunity to pool our talents into Bifrost.

We incorporated in May 2018, and shortly after, acquired mentors as we began development of our platform.

Founding Team:

Dino Ubatuba - CEO, Co-Founder

“After working as a wealth manager for twelve years, I came to Glasgow to study Business Economics to enhance my skills. I found at University of Glasgow a great environment to create and engage new technologies. While I worked in the wealth management, I noticed the three main adversities faced by wealth managers: scale, marketing, and digitization. Bifrost was created to address these problems, and we believe the wealth management industry can use Bifrost’s technology to enhance the relationship between investors and wealth managers in the digital world.” 

Lorenzo Berg - CFO, Co-Founder

“I think there is a big disconnect with the way asset managers work today, and what their clients really need. We rectify that gap by providing a space for managers to provide the best ideas and tailored investments to their clients, regardless of what a bank wants to sell to you.”  

Zoe Balek - COO, Co-Founder

“I am passionate about creative and disruptive technologies in the contemporary environment. I enjoy building new things and my multidisciplinary background provides me with a unique perspective on problem-solving. I believe that through merging human insight and tech foresight, Bifrost has the potential to disrupt the traditional wealth management industry.”  

Andreas Pogyatzis - CTO, Co-Founder

“My past experience in startups has motivated my enthusiasm for contributing to Bifrost’s success. Combining a strong technical background and my entrepreneurial knowledge I am committed to practically apply what I learned and lead Bifrost’s technical development to deliver innovative solutions that meet the criteria of the most demanding wealth managers and investors!”  

Viktor Torstenius - Business Analyst, Co-Founder

“I have always been drawn towards innovative technologies and creative solutions. As a Swede, I value Norse mythology and its history. Thus, when the company began forming and our mission became to connect individuals, to bridge the gap between the investors and wealth managers, Bifrost was the first name that came to me: the burning bridge that connects heaven and earth.”  

Nasser Qadri - Technology Developer, Co-Founder

“Technology has been a big part of my professional and academic life. I wanted to contribute to the nascent field of fintech, while also democratizing investment tools, making it possible for early investors to connect with experienced wealth managers.”  

Martina Löfqvist - Business Analyst, Co-Founder

“Technological innovations continue to revolutionize the way we work, live and relate to one another. It is as fascinating as it is mind boggling. But sometimes we forget that we are social creatures, in need of human interactions. Thus, with Bifrost our aim is to combine the two, which echoes my studies in computer science and past experiences with entrepreneurship. I’m curious to see how far we can go! ”  

We will continue to use this space and our social media to keep you updated on our progress and features – make sure to follow us so you don’t miss out. You can also sign up to our email list to be the first to hear about our launch.

Have a lovely day!

 

Risk Warning:  As with all investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. It’s important you understand the risk before making investment decisions. Historical returns are no guarantee of future returns.

What is an ETF.

What is an ETF?

WHAT IS AN ETF?

Ever wondered what an ETF is? Here, we provide a simple guide on the meaning of an Exchange Traded Fund and how it is traded on the stock market.

By Viktor Torstenius, co-founder of Bifrost – Aug 18 2018 

An exchange-traded fund is a fund traded on the common stock exchange. There are ETFs linked to countries, regions, industries, themes, and strategies (big cap, high yield etc., interest rates, currencies, and commodities).

The fund type is traded on the same terms by institutions and individuals. An ETF usually has one or more market guarantors who, during stock exchange opening hours, make buying and selling rates in the shares. The market guarantor continuously values the shares depending on how the fund’s holdings develop and thereafter sets a price to facilitate trading. The market guarantor can buy (redeem) shares against the fund company and then supply (receive) the corresponding share of the ETF’s portfolio. If the proportion becomes too cheap relative to the fund’s holdings, the market maker will buy shares and swap those with the fund’s holdings that can be sold more expensive in the market, and vice versa. The purpose of this mechanism is to create conditions where the shares are traded close to the theoretical value.

 

Advantages of an ETF:

  • End the deal the same day. In a regular investment fund, it often takes several days before the transaction is posted to the account or depository.
  • Purchases and sales can be made within the same trading day, known as day trading.
  • Usually lower management fees than ordinary investment funds.
  • Simply explained, ETFs are the best from the mutual fund (risk spread and simplicity) and combine it with the benefits of the shares (constant pricing and marketability).
  • Great opportunity to create advanced strategies and portfolios with specific focuses.
  • Since ETFs are many times index products that follow a given index, they provide relatively low asset risk.
  • Risk diversification.
  • Transparency.
  • Wide range.

 

Disadvantages of an ETF:

  • Hidden costs in the gap (spread) between buying and selling rates in the short-term business.
  • Returns from ETFs with daily leverage are consumed if the index fluctuates sharply. Funds with levers are therefore mainly a product for day trading.
  • The investor runs the risk that the party that guarantees the ETF’s underlying securities becomes insolvent.
  • Built-in levers often underperform their index.
  • Brokerage

 

A mixture of a fund and a share.

An ETF is a mix of a fund and a share, as it has a structure and risk spread as a fund, but at the same time a share’s liquidity and pricing. One of the tasks of the ETF is to follow a specific index such as the FTSE 100. Sometimes the high interest in ETFs is the low fees, which are the same for private savers and institutions, as well as the fact that most of the active funds are striking not its benchmark. The ETF market has become low, as more and more investors are discovering their benefits. In the video below, Bloomberg explains how ETFs work and how they can help you achieve better returns.

 

Index fund

In most cases, an ETF is an index fund. In an ETF you get the same risk spread as you get in a regular traditional index fund. An investment in an ETF means that you can easily and at low cost get immediate exposure to the market you have chosen to invest in. For example, it may be the stock or interest rate market in a region, a broad commodity market or a particular business sector.

ETFs usually reflect different indices and are thus a stock exchange version of index funds. They follow a certain index. An obvious advantage of ETFs is that they often charge a lower management fee than the corresponding index funds. One can, for example, Buy ETFs with a management fee of less than 0.1% for several of the world’s larger indexes.

 

ETF traded over the stock market

The big difference between an ETF and a common traditional index fund is that an ETF is traded on the stock exchange. This means that it is priced and can be bought and sold in real time, in the same way as a share.

An ETF, therefore, fits investors who are active with their investments and want to make use of market fluctuations according to their market position, as fast and easy as trading stocks. But an ETF can also be an excellent option for long-term savings, thanks to lower fees. ETFs are also subject to the same strict rules and supervision as usual traditional funds.

 

If you want to know more please visit the following:

Investopedia

What Is an ETF? An Infographic

How Hedge Funds Use ETFs

 

investing-for-humans

The Bifrost Team

THE BIFROST TEAM

Welcome to Bifrost! We are excited to share our story with you and hope you will follow our journey.

By Bifrost – Aug 11 2018

Bifrost is an online investment platform. We help people achieve their financial goals by connecting them to wealth managers who provide tailored portfolios. We also provide a space for wealth managers to practice their profession with full control over the portfolios they offer, promoting independence and providing an easily accessible client pool. 

Bifrost began in the late 2017 as the brainchild of seven students at the University of Glasgow. We shared an ambition to improve the financial world. Our diverse backgrounds, experience and expertise offered a unique opportunity to pool our talents into Bifrost.

We incorporated in May 2018, and shortly after, acquired mentors as we began development of our platform.

Founding Team:

Dino Ubatuba - CEO, Co-Founder

“After working as a wealth manager for twelve years, I came to Glasgow to study Business Economics to enhance my skills. I found at University of Glasgow a great environment to create and engage new technologies. While I worked in the wealth management, I noticed the three main adversities faced by wealth managers: scale, marketing, and digitization. Bifrost was created to address these problems, and we believe the wealth management industry can use Bifrost’s technology to enhance the relationship between investors and wealth managers in the digital world.” 

Lorenzo Berg - CFO, Co-Founder

“I think there is a big disconnect with the way asset managers work today, and what their clients really need. We rectify that gap by providing a space for managers to provide the best ideas and tailored investments to their clients, regardless of what a bank wants to sell to you.”  

Zoe Balek - COO, Co-Founder

“I am passionate about creative and disruptive technologies in the contemporary environment. I enjoy building new things and my multidisciplinary background provides me with a unique perspective on problem-solving. I believe that through merging human insight and tech foresight, Bifrost has the potential to disrupt the traditional wealth management industry.”  

Andreas Pogyatzis - CTO, Co-Founder

“My past experience in startups has motivated my enthusiasm for contributing to Bifrost’s success. Combining a strong technical background and my entrepreneurial knowledge I am committed to practically apply what I learned and lead Bifrost’s technical development to deliver innovative solutions that meet the criteria of the most demanding wealth managers and investors!”  

Viktor Torstenius - Business Analyst, Co-Founder

“I have always been drawn towards innovative technologies and creative solutions. As a Swede, I value Norse mythology and its history. Thus, when the company began forming and our mission became to connect individuals, to bridge the gap between the investors and wealth managers, Bifrost was the first name that came to me: the burning bridge that connects heaven and earth.”  

Nasser Qadri - Technology Developer, Co-Founder

“Technology has been a big part of my professional and academic life. I wanted to contribute to the nascent field of fintech, while also democratizing investment tools, making it possible for early investors to connect with experienced wealth managers.”  

Martina Löfqvist - Business Analyst, Co-Founder

“Technological innovations continue to revolutionize the way we work, live and relate to one another. It is as fascinating as it is mind boggling. But sometimes we forget that we are social creatures, in need of human interactions. Thus, with Bifrost our aim is to combine the two, which echoes my studies in computer science and past experiences with entrepreneurship. I’m curious to see how far we can go! ”  

We will continue to use this space and our social media to keep you updated on our progress and features – make sure to follow us so you don’t miss out. You can also sign up to our email list to be the first to hear about our launch.

Have a lovely day!

 

Risk Warning:  As with all investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. It’s important you understand the risk before making investment decisions. Historical returns are no guarantee of future returns.

About Bifröst

Bifröst connects investors with wealth managers. We offer personalized advice from licensed experts in the industry to provide a simple and tailored investment experience.

Risk Warning: As with all investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. It’s important you understand the risk before making investment decisions. Historical returns are no guarantee of future returns.

BF_logo_whitetext

Bifrost Wealth Limited
272 Bath Street
Glasgow
G2 4JR

+44 780 247 3577
info@bifrostwealth.com