By Levi Tsai, Client Service, ViewTrade

Retail investment has seen a significant shift in several areas. Fractional share investment has paved the way for investors to own high-value shares without letting market volatility affect their trading behaviours. This innovation has enabled retail investors with limited capital to own shares of highly priced stocks such as NVIDIA, Apple, Tesla, and Microsoft without denting their finances. While diversification of financial portfolios has been made possible, the current market dictates that access alone is not enough – true democratization means delivering powerful financial outcomes. This article sheds light on how investors must strategize their portfolios to start giving results with the help of the latest financial tools in the market.

Access Does Not Mean Democratization

Fractional investment refers to the act of buying a small amount of major company stocks which are priced very highly in the market. One of the biggest plus points of this strategy is that it enables smaller investors to own a certain percentage of top-notch stocks, making them eligible for great returns.

However, a key drawback of this system is that there is little awareness about fractional investing out there, leading investors to invest blindly without understanding how they stand to gain from their investments. Although fractional investment democratized access, the outcomes are not. Financial companies must take proactive measures to improve awareness among investors to drive favourable returns, thus inviting more investors to participate in the process.

Why Focusing on Outcomes Matters In 2025?

Wealth Beyond Ownership

In the world of investments, it is not only about owning shares. In this age of extreme market volatility, investors must understand how their investments behave and more particularly, what outcomes they drive. This leads to sustainable wealth accumulation in the long term. To sustain this, it is necessary to understand and implement long-term strategies that can keep your financial graph steady.

Improving Financial Literacy and Empowering Investors

Investing in today’s market without understanding how it works can lead to poor investment choices. Although fractional investing democratized access to the market, several underserved demographics with limited financial knowledge and industry experience are part of the system. This can lead to less fruitful outcomes. The onus is upon financial platforms that offer investment services, to educate their audience and garner meaningful, educated partnerships leading to sustainable wealth building in the future.

Learning the characteristics of different products, listed company is being more important when you have more access to the market. There is always risk for investment. Gamification or democratization does not mean easy outcome for the fortune but for the access to the chance of fortunes.

Regulatory And Structural Considerations

While empowering investors with accurate information will lead to better investment decisions, financial organizations must also take into account the regulatory and structural requirements. In markets like India, where regulatory boards currently restrict fractional ownership domestically, financial institutions must consider moulding their investment strategies to empower their investors. In markets like the US, it is easier for brokers to hold and distribute fractional ownerships, facilitating better portfolio management and drive favourable returns. In Taiwan, people used to save part of their salary in saving account but now the new US notional/fractional trading solution enable them to invest their salary in US equity market and grow with world economy.

Focus on Holistic Investment Journeys

Great financial outcomes are driven by slow-paced growth. Investment firms and financial institutions must integrate fractional investment with broader planning tools like debt management, retirement planning and savings optimization.

Allow Investors to Personalize Their Investments

The exponential growth and integration of AI and data analytics to develop effective wealth management tools has allowed investors to keep a close eye on their investments. Investment companies must encourage this culture to drive effective investment outcomes based on their customers’ risk appetite and individual goals.

With notional trading, a small individual account could also do portfolio management to introduce multiple investment vehicles in his portfolio and rebalance the portfolios as like funds manager. It brings a personal account to achieve the level they can’t before.

Key Strategies for Financial Institutions

Building Futuristic Platform Designs

Today, investors are more digitally and technologically aware than ever before. Companies must focus on integrating AI-powered technologies into their platforms to enable investors to make results-driven decisions and build wealth sustainably over a longer period, instead of focusing on improving trading activities. Focus on building user-friendly dashboards that indicate the progress of investments instead of displaying the number of shares owned.

Key tool is to backtest the different financial vehicles’ wealth effect from single stock, US market index ETF, Sector ETF to Theme ETF and even active ETF, it allows the investors to spot the right weight on the sectors or financial products based on his/her age and financial condition.

Powerful Collaborations with Industry Experts

Partner with industry experts and financial literacy organizations to foster a value-based financial ecosystem. This will deepen their relationship with the organization and enable better outcomes for customers.

Reward Long-Term Behaviour

People appreciate rewards. Keeping this philosophy in mind, come up with rewarding strategies that centre around what long-term customers would appreciate. For example, offer reduced fees for sustained holdings.

To achieve long term behavior on financial success, the right spot is to locate a proper asset allocation and keep buying on a monthly basis to achieve smell curve effect. The notional/fractional trading here comes into the scene to help DCA (Dollar-Cost Averaging)

Why Investment Firms Must Act Now?

With increasing pay, more and more millennials and Gen Z are looking for meaningful financial investments. This is an excellent opportunity for investment firms and financial institutions to come up with new investment avenues for the tech-savvy generation. With ‘Digital-first’ being this generation’s mantra, introducing AI-driven investment platforms and data-driven dashboards showing the progress of the investments can generate revolutionary results. Institutions must adopt outcomes-first models to stand out in the crowd and ensure their long-term success. Keeping this ideology in mind, ViewTrade has partnered with Moment, a leading fixed-income execution partner to enable fixed-income advisors to offer fractional investments in fixed-income portfolios. This step aims to not only broaden their investor’s access to fractional investments but also facilitate outcome-driven decisions.

A Vision For 2025

Fractional share investing has opened several new avenues for modern investors. However, investment firms and financial companies must implement technology-forward measures to drive a younger, more driven audience to make informed, outcome-based decisions. Financial strategists must consider the current market trends and focus on providing a younger, tech-savvy demographic, with a satisfying financial experience, garnering their trust and creating a more flexible, outcome-based ecosystem. The role of senior leadership is paramount in driving this transformation.