What You Need to Know
- The lower minimum brings Merrill Guided Investing in line with other digital advisors, including Goldman's Marcus Invest.
- The minimum for ETF Core and Core Impact strategies of Merrill Guided with an Advisor accounts was also cut.
- Merrill Guided Investing provides access to 15 investment strategies from the company's Chief Investment Office.
Bank of America has slashed the minimum initial investment for Merrill Guided Investing, its online advisory program for mass affluent investors using the Merrill Edge platform, from $5,000 to $1,000.
The move is intended to give more clients and prospects access to the program, which provides investors with access to 15 investment strategies built and managed by the company’s chief investment office, according to the Merrill announcement.
David Goldstone, manager of research and analytics for Backend Benchmarking and The Robo Report, said reducing minimums is a common response to growing competitive pressures across the digital advisory industry.
The Merrill Guided Investing minimum is now in line with that of Marcus Invest, a digital advisory service that Goldman Sachs launched last month, but is higher than Fidelity’s mass market digital platform, known as Fidelity Go, which has no minimum.