Best Investment Apps for Beginners Who Want Passive Income

For beginners looking to build passive income with minimal effort, automated investing apps like Acorns and Wealthfront offer simple, hands-off solutions. These platforms focus on diversified ETFs, index funds, dividend stocks, and REITs, typically targeting long-term annual yields between 4% and 8%.

For investors based in Peru, access is possible through international brokerage accounts, multi-currency platforms, or globally available trading apps. The key is choosing platforms that combine automation, low fees, and diversified exposure.


Why Automated Investing Works for Passive Income

Passive income investing depends on three pillars:

  1. Diversification (ETFs, REITs, bonds, dividend stocks)
  2. Reinvestment (DRIPs – dividend reinvestment plans)
  3. Automation (auto-deposits, auto-rebalancing, tax optimization)

Robo-advisors and automated platforms remove emotional decision-making and timing errors, allowing consistent compounding over time.


Top Apps for Passive Income Investing

Acorns – Micro-Investing Made Simple

Acorns is ideal for beginners who want effortless investing. It automatically rounds up everyday purchases and invests the spare change into diversified ETF portfolios.

Key Features:

  • Minimum investment: $5
  • Fees: $3–5 per month
  • Target yields: 4–7% (diversified ETFs)
  • Automatic portfolio rebalancing
  • Dividend reinvestment

Acorns is best for micro-investors who want to build wealth passively without active management.


M1 Finance – Custom Dividend Portfolios

M1 Finance allows users to create “pies,” or custom portfolio allocations made up of dividend stocks, ETFs, and REITs.

Why it stands out:

  • Minimum investment: $100
  • No platform fee for accounts over $10,000
  • Automatic rebalancing
  • Dividend reinvestment built in
  • Global stock access

Target yields range from 4–8%, depending on portfolio construction. It’s ideal for investors who want customization but still prefer automation.


Wealthfront – Tax-Optimized Robo Investing

Wealthfront is a fully automated robo-advisor that builds diversified portfolios of ETFs and bonds.

Key benefits:

  • Minimum investment: $500
  • Management fee: 0.25%
  • Tax-loss harvesting
  • Automated rebalancing
  • Yield targets: 5%+ depending on allocation

Wealthfront is strong for long-term investors who want tax optimization and a completely hands-off experience.


Fidelity Investments (Fidelity Go)

Fidelity Go offers robo-advisor services with zero management fees for accounts under $25,000.

Highlights:

  • Minimum investment: $0
  • 0% fees under $25K
  • 3–6% expected returns (index-based)
  • Strong educational resources

It’s an excellent starting point for beginners who want low-cost exposure to index funds.


eToro – Social & Copy Trading

eToro allows users to copy experienced investors automatically. Followers can potentially earn 5–10% average returns, depending on the traders selected.

Key Features:

  • Minimum investment: $50–200
  • Fees: spreads (no traditional commission)
  • Social trading tools
  • Latin America-friendly access

For Peru-based investors, eToro is one of the easiest platforms to access without complex brokerage setups.


Betterment – Fully Automated Wealth Building

Betterment automates portfolio construction, dividend reinvestment, and tax optimization for a low 0.25% annual fee.

Target net yields typically range from 4–6%, depending on risk tolerance and asset allocation.


Crypto Passive Income: Coinbase

For those comfortable with higher volatility, crypto staking through Coinbase can generate yield on select digital assets.

However, crypto income is less predictable and carries higher risk compared to dividend ETFs and index funds.


Comparison Table

AppMin. InvestmentFeesPassive YieldsBest ForPeru Access
Acorns$5$3–5/mo4–7% (ETFs)Micro-investingUSD app access
M1 Finance$100$0 (>10K)4–8% (dividends)Custom portfoliosGlobal stocks
Wealthfront$5000.25%5%+Robo portfoliosU.S. assets
Fidelity Go$00% (<25K)3–6%Free robo startIntl. broker needed
eToro$50–200Spreads5–10% (copy)Social tradingLatAm friendly

How Peru-Based Investors Can Access These Apps

Because many platforms are U.S.-based, Peru investors may need:

  • International broker accounts
  • USD bank accounts
  • Platforms like Interactive Brokers for regulatory compliance
  • Multi-currency trading accounts

eToro is often the simplest option for Latin American users, while Interactive Brokers offers broader global access and institutional-level diversification.

Be mindful of:

  • Currency exchange risk (PEN vs USD)
  • U.S. dividend withholding taxes
  • International wire transfer fees

Diversifying across assets helps mitigate forex and regional risk.


Best Strategy to Start

For beginners:

  1. Start with $50–$100.
  2. Allocate between:
    • High-yield savings or bond ETF
    • Broad-market ETF (S&P 500 or global index)
  3. Enable dividend reinvestment (DRIP).
  4. Automate monthly deposits.

At a 6% annual return, $200 invested monthly could grow to over $40,000 in 10 years—primarily through compounding.


Final Recommendations

For hands-off passive income:

  • Choose robo-advisors like Wealthfront or Betterment.
  • Use M1 Finance for dividend-focused customization.
  • Consider eToro for easy Latin American access.
  • Keep fees below 0.25–0.5% annually when possible.

The most important factor is not finding the “highest yield” app—it’s consistency, diversification, and reinvestment.

With automation and discipline, these apps can turn small, regular contributions into reliable passive income streams over time—no day trading required.