The popularity of impact investing has seen the rise of numerous trading platforms aimed at socially conscious investors, but a team of NYU students has been developing an app that combines the social good of impact investing with the popularity of social media.
Emcee is an up-and-coming trading platform by Stern MBA students Arash Asady and James Lamach that is centered around an idea called “crowdvesting,” which connects investors in the hope that their collective trading ideas will produce greater returns. Unlike other trading platforms that are simply marketed toward less-experienced traders, Emcee’s framework will not only provide casual traders access to investing opportunities, but also will allow aspiring portfolio managers to actively share their knowledge with others on the platform.
First, Emcee’s database will match users with stocks that align with their interests and values. From there, users can craft their portfolio, however large or small, and begin sharing it with their friends on the platform. In this way, friends will be able to view each others’ investments and compare returns, which transforms investing from an individual pursuit into a socially engaging activity that is both enjoyable and educational. Emcee will not charge an Assets Under Management (AUM) fee, a form of compensation typically charged by fund managers, which will make Emcee the first financial services application to waive this fee.
More serious Emcee users can opt to publish their active portfolio on Emcee’s marketplace, where all of Emcee’s users can view a portfolio’s performance, trading history, and investing strategy. When a user uploads a portfolio to the marketplace, other users have the option to track that portfolio, which means their own portfolios will match that portfolio’s investments in real time. The portfolio owners, known as “emcees,” will collect a share of the profits that their followers realize while tracking their portfolio.
The social impact implications of this app are particularly noteworthy. In a study by Morgan Stanley, the share of Millenials who indicated they were “very interested” in sustainable investing jumped to 38% in 2017 from 28% just two years prior; on the whole, 86% of Millenials indicated they were at least “somewhat interested” in sustainable investing. Emcee is poised to connect this new generation of investors with influencers and strategies that truly align with their personal beliefs and interests. At the same time, socially-oriented investors in the space will have the chance to amplify their impact through their band of followers.
Learn more about Emcee Invest at their website: www.emceeinvest.com
Written by Avery Farm
Net Impact E-Board
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