Why now is the right time to invest with Moneyfarm

Cash savings are the equivalent of lost money, says Moneyfarm, and recommends taking immediate advantage of the investment opportunities that its tailored portfolios and expert teams could provide

These are challenging times. The coronavirus has completely changed our lives in ways that would have been unimaginable a few months ago. Nobody knows what the future holds. However, there are some benefits to this uncertainty...

With global stock markets in disarray, there is a golden opportunity for longer-term investors to make decent returns. Buying into battered companies and sectors, whose valuations have taken a massive hit in recent months on the back of the Covid-19 pandemic, could prove to be a very wise decision.

History tells us that stock markets do recover: for example, even the FTSE All-Share eventually bounced back after suffering a severe loss in the financial crisis of 2007-2009.

Why you shouldn't keep your assets in cash

As well as the potential profit on offer, there is another compelling reason to consider investing: the miserly rates of interest paid by many banks and building societies.

Even though the rate of inflation is relatively low – the Consumer Prices Index (CPI) measure stood at 0.8% in June – many accounts are offering considerably less. This means that opting for the supposedly safer option of keeping your assets in cash actually means your buying power is reduced over the longer term. With a recession looming, this is an alarming thought.

Of course, the prospect of investing can also be terrifying. Choosing the right portfolio is a difficult task for even experienced investors, so little wonder it can seem daunting for relative novices.

How Moneyfarm can help

Not only an advisor but also a discretionary manager, there are plenty of benefits to the Moneyfarm approach to investment.

The first step on the investment journey involves filling in a questionnaire. This determines the investor's 'willingness to take on risk', and has the same purpose as a fact-find used by a traditional financial adviser.

Next, Moneyfarm assesses the client's ‘ability to take on risk’ from their investment amount and the length of time that they are looking to invest for. Again, this is the same process as a traditional financial adviser – but much more digital and client-friendly.

All of this determines the right portfolio risk level for the client.

Moneyfarm's unique hybrid service model

Moneyfarm's unique hybrid service model combines 24/7 digital access to all your investments – via online and app – with the support of experienced, data-driven investment advisers.

It’s easy to see the appeal: such premium service would cost a lot more elsewhere and it's one reason why many investors have come to Moneyfarm from more established players.

Simply put, Moneyfarm's model enables investors to make the most of their money in a simple, cost-effective way, while having experts on hand. Click here for more.

Clients are placed into one of seven globally diversified portfolios, based on the outcome of the results of the aforementioned questionnaire. The portfolios invest in high quality, low-cost, exchanged traded funds (ETFs), which have proved to be a great way to achieve diversification.

Expert, experienced teams

Moneyfarm's dedicated Asset Allocation team is made up of top experts in their field, led by Richard Flax who's held leadership roles at PIMCO and Goldman Sachs prior to Moneyfarm.

It's reassuring news for investors: they actively review and rebalance investment portfolios based on every customer’s risk level. This prevents big shocks – such as market reactions to Covid-19 – and drives consistent long-term growth.

Moneyfarm's hands-on, evolving approach is in marked contrast to competitors who leave the complex decision-making to customers and provide inflexible off-the-shelf investment solutions. For more information click here

Clients pay a single management fee

Another benefit of Moneyfarm is its tiered approach to fees.

Clients pay a ​single management fee​ on their whole account – and this decreases the more they invest. There are ​no additional costs​ for trading, exiting, transfers or drawdown, and even the advice is included.

However, time is of the essence. Global stock markets have already recovered sharply from their lows earlier this year, so now is the time to get involved and lock in some possible gains before it’s too late.

For more information, visit moneyfarm.com/uk/portfolios

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