Personal Capital debuts investment management tool

Personal Capital Corp. on Tuesday announced the launch of a free companion product to its online investment advisory platform. Personal Capital's new service, called Investment Checkup, evaluates users' investments and other assets, and recommends a target asset allocation and guidance for constructing the recommended portfolio. It also provides data showing how well existing investments are performing. For an additional fee that tops out at 0.95% a year, the firm, a SEC-registered investment adviser, will manage the portfolio. They have apps for iOS and Android. The move makes Personal Capital, which manages more than $252 million for paying clients, the latest to offer a free digital product that emulates some of the functions of a traditional, bricks-and-mortar financial firm. Personal Capital's competitors, including Jemstep, Betterment and FutureAdvisor, have also unveiled similar rollouts. “Effectively using technology and leading with free to engage customers is really going to set winners apart from losers,” said Jim Del Favero, chief product officer for Personal Capital. The firm is run by former Paypal Inc. chief executive William H. Harris Jr., who said last month that the firm plans to hire 100 new advisers over the next two years.