These investment apps are quickly growing in popularity with the general public. This trend is particularly pronounced with novices seeking to build their wealth on convenient and accessible platforms. Realizing that the world of finance is advancing and adapting alongside technology, a handful of investment applications have surfaced to address varied requirements. Here’s our guide to the best investment apps including Moneyfarm, Wealthify, Nutmeg, Moneybox and Dodl.
Each platform has its own unique offerings, fees and minimum investment requirements. So it’s extremely important for users to do their own due diligence and make informed choices. By better understanding the range of current offerings, users can choose what makes the most sense for them based on their individual financial goals and risk appetite.
Overview of Investment Apps
With around 160,000 active users and more than £5 billion in assets under management, Moneyfarm has some standout numbers. The platform features term and income investing, along with philanthropic investing. One bold strategy invests in 74% stock and 14% government bonds. If your initial investment is £3,000 in the actively managed option, the management fee drops to 0.75%. You’ll find yourself paying an extra 0.3% for your investment too. This leads to an effective annual cost of roughly £31.56.
Wealthify, which is a subsidiary of the insurance giant Aviva, has just under 100,000 customers. Its fees consist of a platform fee of 0.6%, which covers the costs of portfolio management. Wealthify’s most adventurous choice invests 80% in equities, 15% in real estate and 5% in bonds.
Nutmeg targets a range of investment appetites, costing a total of 0.98% in total charges for its fully managed products. The platform further offers the ability to invest via managed fixed allocations at 0.45% management fee in addition to an investment charge of 0.17%. To invest in ISAs and pensions with Nutmeg, you’ll need a minimum of £500. You can open them with as little as £100 for lifetime ISAs and junior ISAs.
Features of Notable Investment Apps
Moneybox is another major player in the investment app space, boasting more than 1.5 million customers and over £10 billion in assets under management. The Bond’s platform makes it easy for everyone to invest, with a minimum investment of £100 or a monthly direct debit from just £25. This flexibility is particularly attractive to nascent investors who might prefer to dip their toes in the water by starting small and ramping up their investments.
Dodl, which is owned by AJ Bell, launched in 2022 with the goal of reducing the friction and making the investment process clearer to users. It has a much smaller, lower minimum investment level – dwarfed by its parent company. Just £1 to open an ISA, and £50 for pensions. This simplicity and accessibility features make the investment approach very attractive to those new to investing.
“The home team” – Dodl
…these apps are flexible enough to serve a range of investors, offering engaging, accessible services especially geared toward novices.
Fees and Guidance
When deciding where to invest with an app, it’s important to know what the fees mean. Nutmeg’s total charges of 0.98% for fully managed options can be considered competitive when compared to other platforms. Moneyfarm’s fees vary by the level of your investment. Working with accurate user estimates It’s important for users to evaluate their possible costs based on their level of investment.
Wealthify’s platform fee of 0.6% includes portfolio management expenses, while Nutmeg’s fixed allocation options offer a slightly lower management fee of 0.45%. For novice investors, these charges can erode a substantial amount of total returns over the long haul.
Beyond the fees, prospective investors should be aware of the advice provided by these competing platforms. Nutmeg provides free technical assistance for other general questions. For users looking for more in-depth financial advice, services begin at £900, providing users with confidence as they begin to invest.
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