It goes without saying that with investment, your capital is at risk. However, investment isn’t just reserved for the super-rich anymore. There are plenty of start-up companies that are looking for investment from customers, with recent app development an investor can use a crowdfunding platform or a platform that customers can invest in company stocks and shares. Here are some great options for apps that you can invest your money through.
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Nutmeg was founded to make investments accessible online, using its online platform Nutmeg is an online wealth manager and the user can begin investing with just £500 capital. Nutmeg charges a management fee of 0.3% to 0.95%, which is great in comparison to the UK’s average of 1.58% fee.
With the ability to check your account 24/7 you can now tell the platform what you are saving for and the amount of risk you would like to take before being sent a portfolio of Exchange-Traded Funds (ETF’s) in equities, corporate and government bonds.
Wealth simple is like Nutmeg, they both offer an alternative approach to investing your money. Wealthsimple uses the portfolio system made up of ETF’s, these are assigned to customers depending on the risk profile.
The mobile app is easy to get started with, they will ask you a few questions to find out what preferences you would like whilst investing and then offers you the best options with their algorithm. It’s a jargon-free app that makes things as simple as possible. After you’ve accepted the terms and conditions you’ll have access to a personalized dashboard and will be able to see how to separate assets are performing.
A questionnaire is filled out firstly with Moneyfarm, it will access your investment goals, risk appetite and consider your financial history. From here Moneyfarm will offer you low-cost, liquid and ETF investment options. What makes Moneyfarm different is that there isn’t a minimum to get started with however they do suggest start with around £1500 for a balanced portfolio.
Based in Cardiff, Wealthify is a hybrid investment system platform that uses a combination of algorithms to offer users a lower point of entry into the investment world.
The CEO mentioned that they are trying to democratize investing and make it available to the mass market. They are also trying to make it as simple as possible so it’s more appealing to the public. Wealthify has stated that it has made an average return on customers’ investments of around 8.86% up to 28.5%.
Being the world’s largest wealth management companies UBS now has its own investing platform for the mass market. But investing with UBS means starting with £15,000 to invest.
UBS has created this platform themselves but has decided to treat it like a start-up. Smartwealth has a thorough starting process in place, you’ll be checked on financial situation risk appetite and must do a behavioral finance check before even proceeding to the identity checks.
This UK start-up has created a micro-investing app that rounds up all your purchases and uses the savings in your investments into stocks and shares.
So, if you bought a drink for £1.50 the app would round up and put the 50p in your investment and the app can round up as many bank accounts as you like. This is an easy way to invest money that you won’t really feel your spending.
Seedrs is a popular platform that can invest in businesses via crowdfunding, so if you think you would be a good venture capitalist this could be the ideal app. The platform allows you to create a profile, contribute to the funding and best of all you can ask the entrepreneurs questions about their business before investing. A couple of success stories that have come from this app include Adludio an adtech company and Oppo an ice cream start-up company.
With a unique Autobid, feature Funding Circle will help diversify your portfolio investments when you deposit money. It is a peer-to-peer platform that allows savers to invest in UK small businesses with an average return of 7.1%. The benefits also help small business have access to loans of between £5,000 – £1 million without having to go through the different banks.
Another very successful crowdfunding platform is CrowdCube. Again, the users get to be venture capitalist on the users chosen financial terms for start-up companies. Crowdube has helped fund companies since 2011 and has contributed £138m of investment with nearly 250,000 investors
This Israeli start-up has been successful and brands itself as a “social trading and investment network” the users are able to invest in multiple sectors including currency, commodities and the stock market all from a mobile phone. Etoro gives its users the ability to copy and watch what successful traders are doing to help you understanding and lower your risk.