The need to invest has become more important in recent times. With inflation on the rise, many are realizing that savings might not be enough, especially as the purchasing power continues to decrease.
Fortunately, technology has also made it easier for people to invest. Gone are when only the richest had access to investment advisers and managers for their portfolios. Digital wealth managers are reinventing the wheel and providing investment access for more people.
But there are still several concerns with financial innovations. While some worry about the risks of investing through the platform, others worry about the profit-at-all-costs approach of wealth managers who focus mostly on what’ll make good money instead of what is good for everyone.
Fortunately, Moneyfarm has set itself apart as a reputable digital asset manager helping users invest based on their worldview. The Financial Conduct Authority-regulated firm operates by strict standards to protect users’ funds and is also a signatory to the Principles for Responsible Investment.
This means all its products are Socially Responsible portfolios, allowing investors to grow their wealth and see their money make a positive impact on the world. By balancing making impacts with effective performance, each product is diversified to match the investors’ risk appetite. In addition, the firm invests client funds in innovative businesses and solutions, devising new ways to solve old problems.
In a world where there’s a need for more action to mitigate the effect of climate change, the firm isn’t just all talk. It’s taking an active role by using data from MSCI to assess and monitor its portfolios and ensure they meet the environmental, social, and governance (ESG) standards.
Moneyfarm Portfolio Selection and Monitoring
One of the major challenges for investors is finding the right way to balance their need for profit with making a positive impact that will improve the environment they live in. Moneyfarm solves that problem with a portfolio designed using exchange-traded funds (ETFs) that emphasize environmental impacts.
Based on data MSCI, it selects and monitors funds using companies’ voting policies, future exposure to ESG-related risks, and involvement in the social controversy. The firm also talks directly with the ETF issuers to get more insight about the funds it intends to invest in.
So far, the mid-range ESG portfolios of the company have a 42% lower carbon emissions rate than companies in non-ESG portfolios. They’re 100% in compliance with Labour laws and United Nations Global Compact.
Who Said Caring About the World isn’t Profitable?
Investing in social good doesn’t mean less money. Moneyfarm is proving that. Simulated performance shows that its most adventurous ESG portfolio would have earned 5% higher returns than a regular non-ESG portfolio. Although simulated performance isn’t a reliable indicator of actual future performance, it shows that investing in a socially responsible portfolio through Moneyfarm can be a win-win.
Investing through Moneyfarm is simple. Users only have to download the app on Google Play or App Store and create an account with their email. After that, they can determine their investor profile by answering some questions. Based on the profile, Monyefarm recommends a portfolio.
Investing immediately is not compulsory, and users can start with as low as $500. There are seven tiers of investing available, all offering a different percentage of monthly fees ranging from 0.75% to 0.35%.
There is also the option of a premium bonds for kids. Through this bond, parents can get tax-free earnings or and a trustworthy means of savings for their children.