How I Use Motif Investing to Find Good Ways to Invest Money
Guest contributor, Joseph Hogue, CFA
Why is Motif Investing the Best Site to Buy Stocks?
Motif Investing can help you save money investing but it is also one of my favorite tools for finding investing ideas.
This website posted a review of Motif Investing a few months back, comparing it against robo-advisors and the DIY option in investing. It had some great points and got me thinking about how I was using Motif.
I had been investing with the Motif online broker since February but had been missing one of its most powerful uses-the best site to buy stocks and to research great stock ideas.
I knew that Motif Investing was saving me money on trading fees and I wasn’t freaking out over the daily moves in individual stocks. What I didn’t realize was that Motif is also one of the best tools available for finding new investing ideas.
Motif Investing-Not Only the Best Site to Buy Stocks But An Idea Machine for Investment Suggestions
The most obvious benefit to investing on Motif is being able to buy up to 30 stocks or ETFs with just one trade, saving hundreds in commissions. Along with this, I’ve noticed that I’m less likely to worry about individual stocks compared to investing on other platforms because my motifs don’t plunge on bad news at any particular company. It’s the diversification benefit of owning a motif of 30 stocks!
Creating a motif, you have the option to make it public to other investors on the site. Most people seem to keep it that way when creating their funds and there are more than 12,000 motifs available on the website. Clearly, I’m not the only one that thinks Motif is the best site to buy stocks.
Interested in dividend stocks?
There are more than 700 funds created in the Dividends category alone, a few doubling the return on the market over the last year.
I still use a few other websites like Morningstar to research investing ideas but Motif is my first stop in picking out a list of potential stocks when I invest each quarter.
Whether you’re looking for the best investments in a specific theme or a sector, motifs on the site always provide ideas on where to look.
How to Use Motif to Find Ideas and Good Ways to Invest Money
Finding investing ideas can start with a simple keyword search but I like to sort through the individual categories.
- Click ‘Explore’ in the top menu and then ‘Motifs’
- You’ll be able to scroll through a menu of the 10+ categories from green investing to dividends and bond funds.
- Besides the 12,000+ motifs created by investors, analysts at Motif have also created publicly-available funds.
- Sort funds by one-year return, volatility, dividend yield or another measure.
- Click through to the motifs and check out which stocks might be candidates for your portfolio.
How I Use Motif to Buy Stocks
I’ve created five funds on Motif Investing, each around a different theme. It’s probably more funds than I need for a diversified portfolio but I like following different investing themes like Warren Buffett’s stocks and sectors that will benefit from huge demographic shifts. In fact, the only investment I haven’t found on Motif is peer lending investing which I do on Lending Club.
Don’t overlook some of the hidden benefits to Motif Investing. Motif is more than the best site to buy stocks, it’s a good tool for saving money and diversifying your portfolio but can also be a resource for finding investing ideas. It’s more hands-on than investing with a robo-advisor but has the tools to help you reach your investing goals.
Here’s Why Motif is the Best Site to Buy Stocks
- It’s affordable-30 stocks for one low commission.
- Motif offers great opportunities to research your own investment ideas.
- Motif offers inspiration and ideas from other investors, to help you find good ways to invest money.
- Motif is diversified.
- With Motif you can create your own mutual fund.
Joseph Hogue, CFA is an investment analyst and blogger. He runs six websites on topics including personal finance, investing, crowdfunding and making money from home. A veteran of the Marine Corps, he holds the Chartered Financial Analyst (CFA) designation and lives with his family in Medellin, Colombia.