By Niket Nishant and Manya Saini

March 26 (Reuters) - Robinhood HOOD.O is rolling out wealth management and private banking services for investors with modest portfolios, as the trading platform looks to have a bigger influence on its users' financial habits.

The company said on Wednesday it is launching 'Robinhood Strategies' — a wealth management service with a 0.25% annual fee, capped at $250, for its premium 'Gold' subscribers.

Users with as little as $50 in investments can access portfolios of exchange-traded funds managed by Robinhood's investment experts. A $500 minimum investment will unlock access to individual stocks in the portfolios.

The move highlights growing demand for professional advice among retail traders, who are increasingly seeing investing as a strategic path to building wealth and securing financial independence, rather than just a hobby.

A survey of retail investors by Betterment last year showed that those with financial advisers felt more confident about their personal finances.

Robinhood Asset Management President Steph Guild, a JPMorgan Chase JPM.N alum, said the new product could help level the playing field as personalized wealth management has long been the domain of high-net-worth clients.

"When we looked across the landscape today, we felt there was a gap and an opportunity," she said.

It will also roll out an AI investment tool later in 2025 to provide real-time market analysis and insights.

PRIVATE BANKING

The company will also launch a private banking product for its Gold subscribers later this year with estate planning, tax advice and perks such as tickets to the Met Gala and the Oscars.

Tapping into users' demand for premium services could help it boost the adoption of its Gold subscription — which costs $5 a month or $50 a year — and fits into Robinhood's strategy of "democratizing" access to products traditionally reserved for the ultra wealthy.

"We're not going after someone who has $10 million. We're going after everybody else," said Deepak Rao, general manager and vice president of Robinhood Money.

The company's shares have risen 29% so far this year, while the Nasdaq composite index .IXIC has dropped 5.4%.

(Reporting by Niket Nishant and Manya Saini in Bengaluru; Editing by Sahal Muhammed)

((Niket.Nishant@thomsonreuters.com;))