SHOW ME THE MONEY: PLUM LAUNCHES INVESTMENT TOOL THAT CAN GIVE YOU CONTROL OVER WHERE YOUR MONEY GOES

  • Plum has announced it is launching an investment tool – accessible via its Facebook chatbot – that can allow users to choose what they invest in based on their personal beliefs
  • Users will be able to invest in tech to get exposure to companies like Amazon, or can choose to invest only in socially responsible companies
  • The investment tool is the lowest priced on the market1, and will allow both novice and experienced investors to invest
  • Announcement is part two of Plum’s three-pronged approach at helping all UK consumers be better off, by saving automatically, growing their saving and not getting ripped off.

Plum, the automated money management chatbot, has today announced the launch of a new investment tool that intends to give users ultimate control of where their money goes by ensuring that they can invest in areas that they truly care about.

Plum’s investment function, which give users the option to invest via its dedicated Facebook messenger chatbot, will officially launch in April, but the fintech company has invited users to sign up to a waiting list published today https://withplum.com/investments/

As part of the company’s mission to help everybody be better off – and in what they believe to be an industry first – Plum’s investment function can allow users to make investments starting from just £1.

The rise of socially responsible investment, driven by millennials, has been critical in the development of the tool. According to recent research, 67% of millennials say they want their investments to match their social and environment values2.  Plum has therefore created its investment tool so that users can align their investments with their personal interests, be that ethical investments, the technology sector or emerging economies.

Plum’s announcement also comes as new figures reveal that cash savers missed out on potential £31bn of stock market returns in 20173. It also comes at a time when interest earned on savings in cash are at the lowest level seen in twenty years4.

Victor Trokoudes, CEO and co-founder of Plum, said: “Many people see investing as an alien topic, but we want it to be available for everybody. When you consider the amount of money that sits in UK bank accounts losing value due to inflation, it’s clear to see that people need easier access to better returns. The difference with investing with Plum is that people will be able to use money they won’t miss – and instead of letting it sit their earning nothing they will now be able to make returns from the stock market.”

Plum’s in-house investment experts have carefully selected the full suite of ETFs, based on performance* and value, for its users – the basic funds have been chosen with first-time investors in mind, offering a range choice of funds based on different risk appetites, whereas the advanced funds have been designed for people that want to invest in their interests and more open to risk. The two options for users are:

Basic funds

Good for first-time investors, these funds can offer a combination between stocks and bonds. Users will be able to pick a risk level they are comfortable with as the following:

  • Conservative – with only 20% stocks, you can expect moderate returns, but are better protected from losses – Historic returns: (5 years available) average 4.73*
  • Balanced – with 60% stocks this option offers well-adjusted combination of stocks and shares – Historic returns: (5 years available) average 8.17%*
  • Growth – with 80% stocks this fund leaves you most exposed to both growth and losses in the market – Historic returns: (5 years available) average 9.84%*

*Past performance is not a predictable indicator of future results. Your capital is at risk. Investments can go down as well as up and you may get back less than you originally invested.

Advanced funds

As the name suggests, these are for more advanced or experienced investors, and give users the ability to choose between the themes of companies and markets. The three categories users will be able to pick from are:

  • Ethical – invest in companies selected for their social responsibility – Historic returns: 10.54% – 5 years trailing*
  • Emerging Market – invest in the growth of companies in Africa and Asia – Historic returns: 19.18% 1 year rolling average*
  • Tech – invest in technology giants like Apple and Facebook – Historic returns: 21.34% – 5 year trailing*

*Past performance is not a predictable indicator of future results. Your capital is at risk. Investments can go down as well as up and you may get back less than you originally invested.

Fee Structure

The fee structure is a simple £1 a month Plum fee for accessing investments.

Depending on options selected each have their own costs (these do not go to Plum):

– 0.15% annually on the amount you have invested; charged monthly + fund fee for the Fund option.

Victor Trokoudes, CEO and co-founder of Plum, continued:

“We recognise that investing should be about what you care about, as well as choosing a risk and return strategy that you are happy with. That is why we have introduced this new option for our users so they can align their own values with their money. It means that everybody – regardless of whether they are somebody who has never invested or the most seasoned investor – will have the ability to decide where their money goes.”

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