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When you invest money, your capital is at risk. Investments can go down as well as up in value, so you could get back less than you put in. A rule of thumb is to hang on to your investments for at least five years to give them the best chance of providing the returns you are hoping for.
Below, we compare two UK investment apps - Moneyfarm and Plum.
Moneyfarm offers formal financial advice and allows you to invest via a Stocks and Shares ISA, General Investment Account, or Private Pension, whereas Plum automates your investments and allows you to invest via a Stocks and Shares ISA, General Investment Account, or Personal Pension. Both apps are UK robo advisors.
Use the tabs below to learn more about the similarities and differences between Moneyfarm and Plum.
With the Moneyfarm app, you can invest through a Stocks and Shares ISA, General Investment Account or Private Pension. Users also benefit from free and personalised digital investment advice from Moneyfarm’s investment consultants.
Once you’ve completed a questionnaire specifying your investment goals, risk preferences and financial habits, Moneyfarm will recommend a selection of its seven risk-rated portfolios.
These range from 1 for the lowest risk, to 7 for the highest risk product. Portfolios on the lower end of the scale mostly comprise of lower-risk level fixed-income investments, including government, corporate and emerging market bonds.
For example, Portfolio 1 makes up 53% cash and short-term government bonds, whilst Portfolio 7 comprises 66% developed markets equities.
Moneyfarm has a minimum investment amount of £500.
It's completely free to download the app.
Then Moneyfarm charges a management fee depending on how you choose to invest. Management fees cover all of your Moneyfarm products and are calculated as follows:
Fees are calculated daily based on the total market value of your portfolio.
On average, you’ll be charged 0.2% per annum in exchange-traded funds (ETF) fees. This is built into the cost of the ETF on any given day, so you won’t see fund charges being deducted from your portfolio directly.
To make sense of the charges, use our robo advisor charges comparison table.
Moneyfarm falls into the mid-price range category. Use our robo advisor charges comparison table to understand how Moneyfarm compares to other robo advisors in the UK.
Moneyfarm is beginner-friendly. The services are designed to make personal investing more accessible to the average person by arranging and managing your investments for you.
It’s a great starting point for those who want to watch their money grow without dealing with the nitty-gritty details of investing.
You can use the Moneyfarm app, which is available on iOS and Android, to view your portfolio information and monitor your investment performance.
No. Although Moneyfarm uses exchange-traded funds (ETFs) and other passive trackers, the investment portfolios are actively managed by the team at Moneyfarm. Click here to learn more.
When you invest with Moneyfarm, your money is protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000. This means you can get your money back if Moneyfarm were to go bust. Keep in mind that the FSCS does not cover losses arising from the performance of any of your investments.
Yes, Moneyfarm is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at their regulatory permissions on the FCA Register.
No.
Visit Moneyfarm’s website here.
Please note: As with all investments, your capital is at risk.
Automatic Investments
When you subscribe to Plum Plus or Plum Pro (from £1 a month), you can choose to invest your money in a variety of funds.
Plum calculates how much you can afford to set aside and invests that amount automatically.
You can choose your investments based on what matters to you. For example, you could choose to invest in emerging markets as well as technology, ethical, American, British or European companies.
The risk level of each portfolio is displayed as a 'chilli emoji' scale and goes up to a maximum of 8 chillies.
Money is invested in funds provided by established fund managers such as Vanguard and Legal & General.
You can invest either through a Stocks and Shares ISA or a General Investment Account (GIA).
The minimum ISA Deposit: is £1.
Click here to learn more about Plum's automatic investments.
Personal Pension (beta)
Plum’s Self-invested Personal Pension (SIPP) allows you to consolidate existing pensions in one place and invest in a choice of risk-managed or diversified global funds.
Plum calculates how much you can afford to set aside and stashes that amount in your pension automatically.
You can invest your pension savings based on your current age and target retirement date.
Click here to learn more about Plum’s Personal Pension.
Plum also offers automatic deposits and automatic utility switching.
It's completely free to download the app, set money aside using automatic deposits and Round Ups, withdraw as often as you like, and switch your bills with Plum.
If you're interested in automatic investments or want to earn interest on your savings, Plum Plus or Plum Pro might be for you.
Plum Plus: £1/month (first month free)
Plum Pro: £2.99/month (first month free)
ISA Charges
Subscription Fee: £1 per month (first month free)
Annual Investment Cost: 0.48% (average)
Trading Fee: £0
Exit Fee: £0
Personal Pension Charges
Subscription Fee: £0 (you do not need to subscribe to Plum Plus or Plum Pro to use the pension product)
Product Provider Fee: 0.45% per year
Fund Management Fee: 0.25% per year (average)
Plum falls into the low to mid-price range category. Use our robo advisor charges comparison table to understand how Plum compares to other robo advisors in the UK.
Plum is beginner-friendly. The service is designed to simplify personal finance and investing for the average person by automating and managing your investments for you.
You can also use the Plum app, which is available on iOS and Android, to monitor your investment performance.
Yes. Funds like Best of British and American Dream track a market index.
Your money is protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000. This means you can get your money back if Plum were to go bust. Note that the FSCS does not cover losses arising from the performance of any of your investments.
Yes, to carry out payment services activities. Have a look at their regulatory permissions on the FCA Register.
Yes. Earn £15 for every three successful referrals. Download the app and use the 'invite' tab in the Plum app to share your referral code.
Visit Plum's website here.
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