Moneybox Reduces Fees, Introduces New Ready-Made Funds
The investment platform aims to attract novice investors with lower costs and actively managed options.
Investment platform Moneybox has launched three new actively managed ready-made funds and simultaneously reduced its fees for these products, aiming to enhance its appeal to novice investors.
These new funds, developed in partnership with investment manager Amundi, are designed for investors who prefer to delegate investment decisions to experts. Users can select funds based on their risk tolerance, with options categorized as cautious, balanced, and adventurous.
The new funds are available within Moneybox's existing investment accounts, including its stocks and shares Isa and personal pension offerings. The platform has set an account fee of 0.15% for these specific funds, a reduction from the 0.45% charged on other investments. Additionally, Moneybox has waived its £1 monthly subscription fee for users who maintain £5,000 or more across qualifying investing and savings accounts.
Fee Comparison and Competitiveness
Moneybox's fee adjustments position it more competitively against rivals such as AJ Bell Dodl, Monzo, and Plum. For its new ready-made funds, the combined platform and underlying fund management fees amount to approximately 0.44% annually, described as cost-effective for actively managed investments aimed at beginners.
AJ Bell Dodl also features an annual charge of 0.15% of the investment value, with a minimum of £1 per month. For investors with less than £5,000, AJ Bell Dodl may prove less expensive due to Moneybox's additional £1 monthly charge on top of its platform fee. AJ Bell Dodl offers a broader selection of eight ready-made funds, including growth, ethical, and pension builder options, compared to Moneybox's three.
However, Moneybox offers a wider array of financial products, including cash savings accounts. Its cash Isa currently offers a rate of 4.65%, which includes a 12-month fixed boost of 1.85%. It is important to note that customers who transfer out of the Cash Lisa after one year may not be able to re-open it with Moneybox.
For DIY investors seeking a wider investment range beyond Moneybox's ready-made funds, platforms like Freetrade and Trading 212 offer lower-cost alternatives.
Moneybox, which began as an app for investing spare change, has established a reputation for promoting products like the lifetime Isa (Lisa).