Fintech & Ecommerce

Monzo Introduces Investments Powered by BlackRock

British banking challenger Monzo teams up with one of the world’s largest fund managers BlackRock to make investing easier and more accessible.

Monzo Introduces Investments Powered by BlackRock

The UK-based mobile bank Monzo has added a new feature to its banking app – Monzo Investments – with three investment options available for its customers with various financial goals and capabilities.

The three ready-made investment funds provided by Monzo in partnership with BlackRock are based on the customer’s acceptable risk level and their financial goals. They are:

  1. Careful – suitable for cautious investors who don’t want to take too much risk, and would rather have smaller returns than lose money. The fund invests 80% of the money in bonds, and about 20% in shares.
  2. Balanced – has a medium level of risk and potentially higher returns than the Careful plan. Here, roughly 34% of money goes to bonds, and about 66% ends up in shares.
  3. Adventurous – portfolio for the most risk-tolerant investors, where both gains and losses may be high. 100% of the money in this fund is invested in shares.

In addition to the potential profitability of the chosen stock, Monzo takes into account the company’s sustainability indicators. All three investment funds aim to invest in projects with less carbon intensity (which produce less carbon emissions). For many eco-conscious customers, the option of sustainable investing is very appealing.

Besides the managed portfolio, Monzo Investments provides customers with educational content. Financial literacy is important for any person, but especially for those who want to reach their financial goals. Monzo app may shed some light on the difference between saving and investing, the meaning behind risk and return, and many other investing topics.

The minimum investment threshold is only £1. The new service also offers automated deposits into investment accounts and transfers of the existing cash ISA or stocks and shares ISA.

We have earlier reported that Monzo was assessing the potential prospects of a merger with the Danish financial institution Nordic peer Lunar Group A/S.