A problem for many beginner investors is that they don’t know what to buy or where to learn about investing. There are many robo advisor products on the market but these typically charge percentage fees. There are many brokers who let customers choose their own investments, and many funds which extract a percentage fee for managing investments, but few low cost, low hassle options.
I think there’s space for some simplified product, with much simpler messaging, simpler investment (say a global etf, or choice of a few etfs on setup), a low flat fee structure and monthly deposits. Behind the scenes of course it would just be a freetrade ISA but presentation and positioning can be really important.
So I’m imagining something like :
- Save from £50 to £1000 a month
- No fee below £1000, £3 a month thereafter
- Money is invested in a cheap global stocks etf
Returns are presented as annual returns, daily fluctuations are downplayed.
This sort of product would work really well to promote freetrade on marketplaces of saving customers many of whom have not considered investing like monzo or MSE say. Signup and use would be a lot simpler and would be ideally suited to presentation in another app marketplace (like a Monzo pot).