Moneyfarm Review 2024: The app disrupting wealth management

Jeremy Biberdorf
By: Jeremy Biberdorf
June 23
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4.5/5

4.5 rating based on 5 ratings

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In a Nutshell: Moneyfarm is a digital wealth management company offering a blend of technology-driven services and human touch. Its simplified investment advice helps investors tailor their investment portfolio according to their risk tolerance and financial goals. The firm leverages advanced investment platforms and strategies, providing a personalized investment journey, irrespective of an investor’s experience level.

Continue reading for our detailed review of Moneyfarm below.

Service TypeFees Promotion
Digital Wealth Management FirmVariesYes - Lower fees for larger investments

Moneyfarm App

Pros & Cons
Pros
  • Access to human financial advisors for personalized investment advice.
  • Low management fees compared to traditional investment companies.
  • Convenient for both novice and experienced investors.
  • Offers a responsible portfolio considering environmental, social, and governance factors.
Cons
  • The minimum investment might be high for some investors.
  • Limited customer service hours.

What is Moneyfarm?

Founded in 2011, Moneyfarm is a digital wealth management company backed by prestigious investors like Allianz Asset Management, Cabot Square Capital, and United Ventures. It aims to simplify the investment journey by offering accessible investment advice and solutions, combining innovative technology with the personalized touch of real people.

Moneyfarm assists investors in making informed investment decisions through its automated investment service. The company’s financial advisors and investment team create an investor profile, considering the investor’s risk appetite, financial goals, and investment horizon. Based on this profile, they recommend an allocation portfolio tailored to the investor’s needs.

However, it’s important to note that all investment involves risk, and past performance is not indicative of future results. This Moneyfarm Review is for informational purposes only and should not substitute for professional financial advice. Always consult a financial professional before making investment decisions.

External Moneyfarm Review & Ratings

SiteRating
Nuts About Money5
Revenue Land4.8 from 2,159 reviews
Smart Money People4.8 from 1,702 reviews
Apple App Store4.7 from 1,724 reviews
Business Insider4.5
Investing Reviews4.5

Here are some reviews from traders who have experienced the platform firsthand:

“Been with Moneyfarm for a number of years now. The performance of the portfolio has been fantastic, in fact it has consistently out-performed my fully managed discretionary portfolio.
More importantly is the level of communications from Moneyfarm, the detail behind any decisions about any re-balancing, performance to date and forecast is outstanding. The app and web portal is fantastic and easy to utilise but at same time you can drill down to the smallest level of detail (which some of the big fund houses would learn from this). Finally the level of support from the team is outstanding, they are very quick to reply to any queries and again detailed as much as required. They also follow up to make sure all is OK post any queries.”
“Moneyfarm were really quick to reply to me when I had a query. Very good and far better than many banks or other online services these days. Well done! Keep up the good work!”
“Excellent communication with videos blogs and live webinars written and presented by those managing your money. Also easy access personal touch from investment consultants. It feels like they want to foster a relationship with their clients. Performance is competitive and fees are low.”
“Easy to use platform that is clear, concise, and transparent. In terms of investment performance. Naturally one would expect gains when the market is rising and losses when the market is in decline. That’s just part of the game.
In line with this, I’ve found my positive returns to be consistent with my risk appetite. However, my losses have been far less than I expected (considering my risk) when the market has been going down.
Great service and great platform.”

How Does Moneyfarm Work?

Moneyfarm starts with an in-house risk assessment to understand an investor’s risk profile and level of risk they are comfortable taking. It takes into consideration several factors, including the investor’s financial situation, investment goals, and risk tolerance.

Based on the assessment, Moneyfarm’s investment consultant offers tailored investment advice, recommending one of their seven diverse allocation portfolios. Each portfolio has a different level of risk and expected returns, catering to different risk appetites.

Once the investor selects a portfolio, the Moneyfarm investment team actively manages it, monitoring financial markets and adjusting the portfolio’s allocation based on market conditions. The goal is to maximize returns while keeping the level of risk in line with the investor’s profile.

The investor can access their investment plan, track performance, and interact with the investment team through the Moneyfarm app or website.

Moneyfarm Investment Options

Moneyfarm offers seven investment options, each designed to match a specific risk level and investment goal. The portfolios range from conservative, for those with lower risk tolerance, to aggressive, for more active investors.

Each portfolio consists of a diverse mix of asset classes, including equities, bonds, commodities, and cash. The portfolios are globally diversified, spreading investments across different geographies and sectors to reduce risk.

One of the notable offerings is the Responsible Portfolio. It invests in companies with good environmental, social, and governance (ESG) practices, offering investors a chance to align their investment with their values.

Investors also have the option to invest in a General Investment Account, a Stocks and Shares ISA, or a Pension, providing tax efficiency as capital gains tax doesn’t apply to ISA and Pension investments.

Moneyfarm Fees

Moneyfarm charges a management fee based on the value of the investment portfolio. The fee structure is tiered, which means the more you invest, the less you pay in percentage terms.

The first £10,000 is charged at 0.75%, the amount between £10,000 and £50,000 is charged at 0.60%, and anything above £50,000 is charged at 0.50%. For portfolios over £100,000, the management fee is reduced to 0.35%.

The management fee covers all investment advice, transaction costs, custody, and reporting. The only additional cost is the fund expense, which averages around 0.20% per annum.

Who is Moneyfarm Best For?

Moneyfarm is primarily suitable for:

  • Novice Investors: With its straightforward approach and access to financial advisors, Moneyfarm is an excellent platform for individuals new to investing.
  • Experienced Investors: The variety of allocation portfolios and the ability to align portfolios with investor’s risk level make Moneyfarm an attractive choice for experienced investors looking for personalized, actively managed services.
  • Investors seeking Responsible Investments: Moneyfarm’s Responsible Portfolio offers an opportunity for investors to align their investments with their values.

What are The Benefits?

Choosing Moneyfarm offers several noteworthy benefits:

  • Personalized Investment Strategy: Moneyfarm’s approach of combining automated technology with human financial advisors allows for a highly personalized investment strategy tailored to the investor’s risk profile and financial goals.
  • Active Portfolio Management: Moneyfarm’s investment team actively manages portfolios, adjusting the allocation based on market conditions to balance the level of risk with potential returns.
  • Low Fees: Moneyfarm’s management fees are relatively lower than traditional investment companies. Also, the tiered fee structure makes it cost-effective for larger investments.
  • Responsible Investing: The Responsible Portfolio allows investors to invest in companies with good ESG practices, making it an ethical investment choice.

Is Moneyfarm Legit?

Yes, Moneyfarm is a legitimate company. Founded in 2011, it is regulated by the Financial Conduct Authority (FCA) in the UK, which provides significant protection and safeguards for customers. The company has a track record of managing clients’ investments and is backed by prestigious investors, including Allianz Asset Management.

Moneyfarm has financial advisors and an investment team that actively manage investors’ portfolios. Additionally, they offer transparency in their fee structure and operations.

However, while Moneyfarm is a legitimate company, it is essential to remember that investing always carries risk. The value of your investment can go down as well as up, and you may get back less than you originally invested. It is always recommended to do your research and consider seeking advice from a financial advisor before making investment decisions.

Limitations of Moneyfarm

While Moneyfarm provides numerous benefits, it’s essential to consider the following limitations:

  • Minimum Investment: Moneyfarm has a minimum investment threshold of £1,500 for its General Investment Account and £5,000 for its Pension and ISA accounts, which might be high for some investors.
  • Limited Customer Service Hours: Moneyfarm’s customer service is not available 24/7, which could be a drawback for investors requiring support outside working hours.

Final Thoughts

Moneyfarm simplifies the investment journey by providing a blend of technology and personalized investment advice. It offers an attractive proposition for novice and experienced investors alike, seeking a personalized, actively managed investment service.

With its range of investment options, active portfolio management, low fees, and Responsible Portfolio, Moneyfarm has positioned itself as a go-to digital wealth management company.

This Moneyfarm review concludes that it is a reliable service for any investor seeking to take a more personalized and active approach to their investment journey.

Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.