Robo-investment cashback deals
Invest in funds & get cashback
Robo-funds are being heavily advertised. They're far simpler than normal investing but you're tied to a 'portfolio' of funds. We think this is somewhat restrictive. However, sometimes these robo-funds offer cashback via a special link when you invest, which'll get you a huge head start on other funds.
Without the cashback, they're fighting against other standard investments, and we'd always tell you to look for lower fees and a bigger choice. But as some of this cashback has been equivalent to up to a 10% head start, other products would need to do very well to beat them.
MoneySavingExpert.com's speciality is not what to invest in – we only look at these as deals, as we can't tell you what is going to be a good or bad investment. So the most important thing to understand is:
We're not saying to go for these funds, we're just saying that if you're going to go for these anyway, then make sure you get the cashback.
Instead, your money will be invested in a basket of funds selected by the robo-provider and based on your risk profile (the firm will ask you a number of questions when you sign up to assess the level of risk you're willing to take).
Because even small fees year after year can eat into your investment.
If you invest more than the minimum needed to receive the cashback, do remember that you'll be more reliant on market movements to boost your returns in relation to the cashback.
As with any investments, the value of your funds can go down as well as up, and while it's unlikely, you could lose all your money.
If you want to open an ISA, remember that everyone in the UK aged 18+ has a £20,000 ISA allowance for 2019/20. For more options, see our Stocks & Shares ISAs guide. You can only contribute to one stocks & shares ISA each tax year.
If this is the first time you've considered any type of investing, it's worth reading our beginners' guide to investing to get a broader idea of what's involved.