Vikram Pandit, a former CEO of Citigroup Inc., is investing in a U.S. startup that aims to help retail investors reduce their investment costs by analyzing and reporting their portfolio fees and expenses and recommending cheaper alternatives.
Pandit is participating in the latest round of venture funding for New York City-based FeeX, a new service that analyzes investor accounts and aims to provide them with greater transparency into the overall costs of investing, taking into account the impact of mutual fund expense ratios, advisory fees, account maintenance fees, asset-based fees, and other charges.
The firm, which calls itself the “Robin Hood” of fees, is also registered as an investment advisor; and, after analyzing an investor’s costs, then proposes lower-cost alternatives.
The financing, which was led by a venture fund, Collaborative Fund, included existing investors and raised US$2.75 million for the firm.
“We’ve been excited about FeeX for over a year and see endless potential to level the playing field for consumers. They are delivering data on fees that users cannot find anywhere else. But more than that, FeeX is providing those same users, many of them young investors, with alternatives that will benefit them greatly in the long run,” says Craig Shapiro, founder and managing partner of Collaborative Fund, in a statement.
“It’s my pleasure to welcome Vikram as an investor,” adds Yoav Zurel, CEO of FeeX. “He truly believes in our mission to help Americans save as much money as possible by identifying and reducing financial fees in their retirement and investment accounts. We hope to draw on his extensive expertise as we continue to scale in the U.S. and expand to expose all types of hidden fees in retirement accounts, bank accounts, credit cards, insurance, life insurance and more.”