Challenger bank Monzo has entered the financial investment space with the launch of the waitlist for its new catchily named Investments app.
Approved users will have a limited range of options consisting of three funds managed by BlackRock, the world’s largest asset manager.
A low-risk ‘Careful’ fund is weighted 80% towards bonds and 20% towards shares, while the ‘Adventurous’ fund is 100% weighted towards shares.
The ‘Balanced’ option is split between 34% in bonds and 66% in shares.
Fees are 0.59% of your investment value, split between a 0.14% fund fee and 0.45% platform fee. Plus and Premium customers pay a lower fee of 0.35%.
Approved Monzo customers will also be able to bring over their stocks and shares ISA accounts.
Introducing: Monzo Investments ????
Pick from 3 simple investment options managed by experts. You can start with as little as £1.
Join our in-app waitlist to be the first to try it out.
ℹ️ You could get back less than you invest.
Learn more ???? https://t.co/ArP8MuMtRY pic.twitter.com/ha5EeUTBQG
— Monzo ???? (@monzo) September 12, 2023
Monzo head TP Anil told CNBC that the platform hopes to break down barriers to traditional investing.
To this end, investment accounts will be available from as little as £1.
The shift towards offering investment options brings Monzo closer in line with other fintech platforms like Wise PLC (LSE:WISE) and Revolut, both of which already offer investment options to their users.