Sweden-based robo advisor Lysa has announced expanding to Germany.

Lysa is a digital wealth manager that automatically invests customers’ money in index funds. In addition, the robo advisor adjusts the risk of users’ portfolio to their individual situation and preferences, and also ensure that the same level of risk is maintained over time.

Users can make deposits and withdrawals at any time. The amount and frequency of deposits and withdrawals are not limited and Lysa does not charge any extra costs for deposits and withdrawals. However, any transaction involving the sale of fund units will be treated as a taxable transaction.

Fees for customers

According to its own information, the company manages EUR 2 billion for over 100,000 customers in Sweden, Finland, and Denmark. Lysa aims to keep fees low for customers and the average investment fee for new customers from Germany should be 0.35%. Generally speaking, Lysa's fees range from 0.15 - 0.24%. Together with the fund and transaction fees, the total costs for clients are 0.342% per year. Everything is included in this amount and there are no additional fees.

Lysa's investment process

The robo advisors’ investment process aims to offer each client the right balance between risk and return. To achieve this, Lysa's investment team has developed a five-step process. This process begins with the selection of asset classes and investment factors, followed by the selection of mutual funds and ETFs that best represent the asset classes and factors, and then the determination of the optimal combination between different mutual funds and ETFs.

Sweden-based robo advisor Lysa has announced expanding to Germany.

Lastly, Lysa completes an individualised compilation of suitable customer portfolios and continuously monitors, rebalances, and updates customer portfolios. The robo advisor continuously optimises customers’ portfolios, ensuring that investments are given the conditions to grow over time.

Lysa’s approach to wealth management

According to Lysa's website, the robo advisors’ approach to wealth management is based on empirical data and academic research. These provide guidelines on how an investor should invest optimally. The main conclusions are that there is a strong correlation between risk and expected return. Therefore, investors who want to achieve a higher return must also accept a higher risk.

Additionally, products with lower fees, such as index investments, reduce the investor's costs and thus achieve a higher return. The final conclusion is that Lysa believes that good diversification increases the investor's expected risk-adjusted return.

Customisation for users

Seeing as each customer has different ideas when it comes to investing money, Lysa aims to make users an investment proposal that is tailored to their needs. Every deposit made on the platform is invested according to these savings goal. With automatic rebalancing, the robo advisor can ensure that their portfolio is always in line with their chosen allocation.

Swedish robo advisor Lysa expands to Germany

Fees for customers

Lysa's investment process

Lysa’s approach to wealth management

Customisation for users