The app-based digital wealth management platform, Moneyfarm has slowly but steadily grown in popularity to make investing more accessible, especially to first-time investors and families. Founded in March 2011 by skilled entrepreneurs Giovanni Daprà and Paolo Galvani, it ensures that individuals get high-quality products and investment advice in an uncomplicated and cost-effective manner. Six years from the time it all began, this digital wealth manager now conducts operations in the UK and Italy. But how cost effective are its fees and is the Moneyfarm app the most preferred choice in an impartial stock broker comparison?
- Superior and advanced performance
- Top-notch security and data protection
- Transparent pricing structure
- Smart investment strategy
Better-quality and engaging performance
When it comes to management fees, Moneyfarm’s 0% fee for the first £10,000 is tremendously appealing. To enhance their performance, Moneyfarm app has also incorporated special features. For instance, the Moneyfarm app for Android tailors every portfolio to your profile. Investment performance and review is assessed through an interactive chart. According to its website, performance is judged based on simulated past performance and returns. The simulated past performance considers the cost of underlying funds but does not take into account the effect of the Moneyfarm management fee, which lowers returns. The performance of a Moneyfarm investment relies upon the prevailing market conditions and the investment selection where your funds are allocated in a manner that maximises returns.
Portfolios under the value of £50,000 are made up of seven or eight EFTs (Exchange Traded Funds), while those over the value of £50,000 are made up of 14 EFTs. When compared to other stock brokers, the investment style and risk of Moneyfarm is adventurous in nature, but it reveals the performance of individual holdings and so offers you a greater edge. Taking into account the past couple of years, you will notice that Moneyfarm is transparent in their performance. This makes it easy for you to check out how they have performed on their performance page. The returns on investments of differing levels of risk are portrayed on easy-to-read charts. It is undoubtedly the best stock broker as it has performed well even during chaotic political events.
Top-notch security and data protection
A transparent pricing structure
Moneyfarm claims that there are no setup or subscription fees when it comes to opening an account. They also do not charge you any additional commission, or trading fees for making transactions. They will let you unsubscribe or withdraw from this service without any penalty or additional cost. When compared to other stock brokers and financial advisors that on an average charge 1-3% AUM, Moneyfarm’s costs fall on the lower side. Here is what their tiered approach to fees looks like:
- The initial £20,000 is charged at 0.7%
- Any amount from £20,000 to £100,000 is charged at 0.6%
- Any amount from £100,000 to £500,000 is charged at 0.5%
- Any amount from £500,000 is charged at 0.4%
Moneyfarm comes with a low minimum investment of only £1, although it is better to possess at least £1,500 in your account. This makes sure assets are diversified in the most proficient manner. Without a doubt, the savings you obtain owing to the investor-friendly pricing structure look impressive. Moneyfarm only charges a management fee that covers aspects such as custodial charges and investment advice, depending on your horizon and profile, investment management, account management and all other trading costs. In addition to this, you are also subjected to the impact of the market spread and ETF fund fee which comes in at an average of 0.3%. What’s remarkable is that all these fees and charges come in a transparent pricing structure and are extremely practical in nature.
Smart investment strategy
Moneyfarm has additional services to its credit that allow them to hold their own even among stiff competition. It has a little to do with the investment goals and a lot to do with how they are set. Through the right guidance and tools, they help investors plan an effective and futuristic investment strategy so that wealth management for the future is setup. A notable aspect of Moneyfarm is that they tailor an investment strategy for you depending on your focus and profile. When you get such a smart and simple investment experience, what more can you really hope for? They meet investment goals by managing account costs, so that costs are kept low and quality high; diversification, choosing from an array of geographies; asset classes and currency exposures, so that risk is reduced; and planning ahead, so that market fluctuations can be managed. This works to re-balance your portfolio on your behalf. They vouch for the fact that they nurture an investment portfolio keeping in mind your goals. This helps to manage the level of risk and return. Investment strategies are inspected by skilled professionals who make use of a number of tools to track performance and rebalance investor profiles whenever the need arises.
Wealth management products
Moneyfarm’s stocks and shares individual savings account (ISA) is a tax-effective manner for investment and helps you close in on your financial goals. The ISA is cost-friendly, transparent and flexible. This makes transferring your ISA seamless. You can effortlessly check out what you are invested in, how much you are paying and the manner in which you are performing, no matter what the time and place. The Moneyfarm general investment is another wealth management product that assists in taking you a step closer to your goals. They put you with a portfolio that ensures your money grows. Moneyfarm general accounts help you save up to 50% on management fees when compared to other kinds of investments. Moneyfarm also offers a personal pension product that helps you get ready for your future. Moneyfarm constructs your investment portfolio to take into account time horizon, your individual goals and financial situation, and matches your portfolio to make certain you are in sync with your retirement goals. Through their products, Moneyfarm safeguards the value of your money from inflation in an unpredictable and fluctuating market, so that you can move towards achieving your financial goals in a better and more proficient way.
In terms of growth
Let’s take a closer look at the Moneyfarm app for Android and what its vital statistics look like in terms of growth. This app allows you to invest your savings in the stock market without putting you through the complexities that usually follow. Their team of investors decide how to invest your money. If you conduct a Moneyfarm app review properly, you will realise that it charges a small fee, of about 1% every year, for helping you control your money. It also gives you the ability to view your investments online. When it comes to deposit protection, up until current times, Moneyfarm’s creditors do not have access to and cannot claim your money. They hold your money in a trust. As much as £50,000 of your investment is safeguarded with Moneyfarm by the financial services compensation scheme (FSCS). When it comes to products offered, statistics show 1% of your portfolio’s value is deducted automatically every year. For instance, if you max out your £20,000 ISA, that’s £200. This also means lower fees for larger balances, such as those which are more than £20,000. The products provided to you by Moneyfarm include a pension, which also comprises transferring in a prevailing pension, and a stocks and shares ISA. You can also transfer in an existing ISA, or general investment, which is the same as ISA only without the annual limit of £20,000.
Working out your risk profile
Moneyfarm app invests your money in various assets depending on your risk profile. The asset allocation is as follows:
- 56% for developed markets equity, 24.81% for cash and short-term government bonds
- 86% for high yield and emerging market bonds, 9.25% for developed markets government bonds
- 82% for inflation-linked bonds
- 08% for investment-grade corporate bonds
- 62% for cash
It is best to understand the kind of risk you are willing to take before investing in stocks and shares. To understand your risk profile in a better way, Moneyfarm asks you a few questions. Based on your answers, you receive a risk profile score from one to six. This indicates where Moneyfarm will invest your money. With risk level one, your savings don’t lose or gain much when the stock market dips or rises. With a risk level of six, you can obtain double-digit growth, but also stand to lose a great deal. Since January 2016, at risk level one, there was a growth of 6.4%. At risk level three, there was a growth of 16.6%. At risk level six, you can find as much as 7% deducted from your savings. However, since January 2016, there has been around 22.6% growth.
Major attractions of Moneyfarm
Moneyfarm is solely focused on its investors, but before you sign up for it and offer any personal details, there exists a portfolio preview tool that you can make use of. You can add in certain figures such as monthly recurring deposits, initial deposit and risk appetite by checking out pie charts and illustrative graphs. When conducting a broker comparison, you will realise that it is easy to passively invest in the stock market. You can easily upload your ISA allowance and relax, certain, at least to an extent, a few returns will do better than other savings accounts. The claim that the fee structure at Moneyfarm is simple also holds true. The total cost of the fees can be compared to similar online or mobile wealth management services. It’s easy to use interface makes it seamless to check the performance of your savings while you can set up a direct debit and then tell Moneyfarm to take money from your account rather than manually transferring funds through a mobile banking app. In addition to this:
- It makes investing available for first-time investors
- It automatically invests money into a liquid, cost-effective portfolio based on your financial objectives
- No minimum commitment is necessary
- It is an intuitive and insightful platform that offers an outline of your investment performance
A clear-cut verdict on Moneyfarm
When making comparisons, you understand that Moneyfarm is certainly among the cheapest, most results oriented and customer attentive investment managers around. Their wide range of services and expert views of the market help them make informed decisions when it comes to forming a clear-cut trading strategy and offering expert guidance. The Moneyfarm app for Android and their professional team of expert financial and investment consultants really is one of the best products available for first-time investors as it takes you step-by-step through your very own, personal investment journey. This helps you to ensure that you make the right decisions to take you closer to your financial goals. Their fees are simple, so that you can keep most of your money and will not lose out on any of your profits to admin fees. Their transparency and communicative style keep you well-informed about the manner in which your money is invested. Once you have reached your goals, you can receive your money back within five working days. It is a simple and stress-free way to grow your money, even if you have zero knowledge about investments and portfolio management.
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