Screenshot Chase Investments Home Page

It came as a big surprise to us that the Chase products were not quite up to standard when compared to other products on the market. This included the savings and checking accounts, but more surprisingly, mortgages and auto loans. A disappointing show that left us reeling and with the hope that the next review would go a little better. We hope that Chase Investments is the product range that manages to bring everything together and allow us to make sense of their vast market share. This review has a look at what Chase has to offer and compares it to some of the best products around the world. Although there is a lot of pressure on this review, it will be unbiased and fair.

Find out how this review compares to the investment range offered by Deutsche Bank.

About Chase

Long history and an American stalwart, Chase has been part of the financial tapestry for decades. Previously known as JP Morgan Chase & Co, the rebranding took place in order to make customers a little more familiar with the brand. The corporate stiffness of the banking world is slowly disappearing, and Chase is taking up this opportunity to reveal its retail intentions. It offers full-service banking in the traditional sense of banking. It also provides access to technology that makes banking a whole lot easier. This is one of the biggest banks in the world based on its asset holdings and market share.

Chase Bank
Screenshot of the History of Chase Bank

Why Consumers Are Reluctant to Invest

Volatile markets and a misrepresentation of funds have seen many potential investors, especially among millennials, shying away from investments. They’re looking for alternate means to increase their wealth and to invest will require quite a lot of convincing from a broker.

Bad Reputation of Brokerage Firms and Banks

After the 2008 market crash, confidence in the brokerage firms and banks have deteriorated significantly. Those who were happy to invest in seemingly “safe” investments such as the property market felt the pinch with the subprime mortgage collapse. Pensioners felt a massive slump in their retirement funds and some individuals lost everything they had. The advice no longer felt sound and serious mistrust replaced the previous confidence.

Not Enough Education

Brokers and bankers have a sound understanding of the markets and the risks involved, but this information is not always easily conveyed to the investor. With time, these things become apparent and investors are able to determine their own strategies. Potential investors are recommended to attend seminars and workshops to gain a better understanding of the terminology and potential strategies.

The Ever-Present Risk

Although investments often offer a higher return than savings accounts and other guaranteed savings vehicles, but there is always risk. Even very low risk investments carry some form of risk which is off-putting to conservative investors.

Investing Can Be Costly

Even with the burden of risk, there is also the added hurdle of overcoming the fees. From the broker right through to the fund manager and taxes, investments could carry many costs. This could eat into the capital which could result in lower returns over a short term.

It Takes Long to See Results

The average investment term is between 5 to 8 years, but this all depends on the fund chosen. Investing is not a get-rich-quick tool and investors need to have the patience for a number of reasons. Firstly, they would need to ride out the market fluctuations and secondly, the investment needs to grow in order to make up for the fees and commissions. Timing is critical in a good investment strategy.

They Don’t Think It’s Suited to Beginners

Everyone needs to begin somewhere and for investors, it usually starts with an appointment with a financial advisor. There are also online training courses and mock investment programs that take investors through the motions of investing without touching their own funds. The best is to start off small and not use emergency funds to invest, no matter how strong the promise of a return is. That is unless there is a written and legal guarantee.

Chase also happens to offer a range of savings products and we recently did a review.

Chase Investments Product Offerings

Screenshot of Chase Investment Options

Retirement Planning

The bank offers customers some great exposure to retirement planning that includes an online tool. This tool allows customers to calculate the amount they need to save in order to have a comfortable retirement. This online tool takes the following into consideration:

  • Age
  • Income
  • Assets and liabilities
  • Employment status
  • Future plans
  • Risks, and more.

Once customers have worked through this tool, they’re presented with a few options for their retirement. They may then also set up an appointment with an advisor to go through the finer details and to see whether they’re on the right track.

529 College Savings Plans

Although it’s great to stick a few dollars into a savings account for college, there might be better options. This is because not all savings plans are designed for the long term, nor do they offer tax advantages. The 529 College Savings Plans are designed to encourage saving towards a college education. The returns on these savings are quite competitive which allows savers to feel a significant boost to their savings.

  • There are certain tax advantages to saving in an account like this. These include federal and state taxes.
  • Consumers enjoy high contribution limitations, which will allow them to save a sufficient amount for the entire college journey.
  • Furthermore, these investments are not limited by income. Anyone over the age of 18 can open a 529 College Savings Plan.
  • Also, professional financial institutions manage the funds and are overseen by the state.
  • There is a certain amount of flexibility available in terms of the beneficiaries of the funds.
  • The funds can be used for a number of educational facilities in the US and abroad.
  • Finally, this type of investment can be viewed as accelerated gifting which is perfect for grandparents.

Find out whether Chase was able to step up to the plate with its range of current accounts.

Managed Accounts

JP Morgan Core Advisory Portfolio

Those who would like diversity in their investment portfolio will find this a suitable option. The investment is professionally managed and enjoys diversification across multiple asset classes.

  • The fund boasts a team of asset managers with a wealth of experience and education to back their decisions.
  • It also features a due diligence team to ensure the funds are in the best hands.
  • Furthermore, the team identifies the risks and opportunities and will make the adjustments accordingly to make the most of the investments.
  • The investment strategy is aligned with the customer’s expectations of their portfolio.
  • Finally, customers have the option to work directly with an advisor for the best strategy.
Mutual Fund Advisory Account

This investment type makes use of the strategic asset allocation guidance from JP Morgan’s Global Access Investment Team. Furthermore, the investment strategy takes the customer’s risk tolerance and investment objectives into consideration.

  • Customers work with their financial advisor for the best strategy.
  • Furthermore, customers regain a level of control with this investment type.
  • Finally, JP Morgan Manager Selection Team evaluates investment vehicles continuously to ensure they remain relevant.
Advisory Program

This is a great opportunity for investors who wish to have access to affiliated and unaffiliated portfolio managers. Furthermore, the investments take place in two different products, the Portfolio Manager Program (PMP) and the Select Advisory Strategies (SAS).

  • Customers work with their advisors to select one or more portfolio managers. They base their decisions on the customer’s investment strategy guidelines.
  • Also, the investment strategies may emerge from specific investment themes or in certain asset classes.
  • Furthermore, the portfolio managers themselves direct and transact the necessary trading. No involvement is required from the customer. 
  • Finally, customers have the ability to select single or multi-asset investment strategies.

Mutual Funds

These investments are perfect for investors who want the professionals to take care of things. Furthermore, the money managers will make the necessary adjustments as they see fit.

  • Customers have access to a diverse range of securities across a wide range of companies.
  • Furthermore, the bank can automatically reinvest interest payments and dividends without incurring additional charges.
  • Finally, the capital gains distributions pass on to the customer when a mutual fund sells a holding at a profit.

Critical Reviews Rating Chase Investments – 9 of 10

Finally, Chase steps up to the plate and delivers a world-class product range. From the range right through to the various options, customers who wish to dip their toes in the world of investing will have numerous options. Furthermore, they have access to financial advisors in order to make things a little clearer and take out the fuzziness that often surrounds investments.

The only concern we have with the range is that we’re not too sure about the actual products on offer for those looking at retirement. Customers will need to go through various stages to get to those options and possibly even make their way to their nearest branch. The bank could also do with a section that explains investment risk, just to make customers a little more aware of it.

We are comfortable with this rating and hope this is enough to redeem Chase bank from the slow start on their other products.

We recently did a review on the investment selection offered by BNP Paribas.