You might have heard of the Modern Portfolio Theory developed by Harry Markowitz which optimized returns based on a given level of risk. This theory supports the concept that introducing uncorrelated asset classes into a portfolio improves the risk return profile.

I recently came across an mobile application from the US called Acorns which helps investors, mainly targeted to household who has yet to start any investing, to make regular small investments into a basket of portfolio by using spare change from your everyday purchases by rounding up each amount to the next dollar automatically. For instance, if you spend $4.50 on Subway and uses the apps to record the transaction, it will read as $5 and pushes the rest of the $0.50 into your Acorns account. This amount will then get accumulated at the end of the month and are used to purchase a basket of indexes …