Great news to all those who have been chasing me publicly and privately about the arrival of the ‘Invest’ option in the app - the final item on the navigation bar, and the missing step in our customer journey from Spend to Invest.
You’ve been able to take a look through some of our proposed investment options for some months, but …
Today’s release of Version 1.7.1 enables the ‘Ready to invest’ button
We’ve written a details post about this here, - LINK BELOW - so please read this post and if you have any further questions or feedback, feel free to leave them here so we can all chat and learn more.
The range of investment options is always under review and we’ve decided to launch with a limited selection for now, but we will be adding more when we have an adequate range of options for each risk level.
Do tell us what you think - we’d love your feedback
Very easy to understand and use. Reasonable limits (although the minimum £1000 will be a barrier to some who would have been looking/prepared to invest £500 for example) and right to measure caution and understanding. I’m in!
Thanks so much for the feedback. We’re so glad to hear it.
The £1000 hurdle ensures that customers only start to invest when they are able to invest for the longer term – so they are likely to be able to keep the investment in place for a number of years and are unlikely to have to withdraw it - although you always can.
This minimum does not make it unachievable (some investment businesses require you to have MUCH more), but it still ensures it is done in a considered manner and that those who put their money in are likely to be able to afford to do it without adding stress to their finances.
I’ll be keeping a keen eye on this when the sale of my flat goes through. Too much tied up elsewhere to ‘test’ with £1k right now, so I’ll taking a watching brief and see what the other peeps here think to the new products
Btw, I particularly enjoyed:
*Sesquipedalian is a word used to describe long words; so sesquipedalian is, in itself, sesquipedalian.
Something I find a bit odd is there isn’t a global whole-market, all sectors theme/ETF. I constantly see this recommended as the most sensible approach to investing in equities (particularly for novices), but the approach Dozens has taken forces investors to make decisions about individual themes.
Good to see this live The onboarding glow looks good. However, as mentioned above I find the £1,000 minimum a bit strange. I also think there should be a ultra low cost world tracker.
Perhaps a alternative to the minimum would be to have locked investment pots, or some other friction, like, to release funds you have to wait a small period. Or just do away with it, and rely on having a education part of the feature.
As explained above this is in part because we need to ensure that we are being responsible in terms of offering these to customers who can afford to buy and keep these investments for a period.
It is also because some of the units we need to buy will include larger amounts and we cannot buy ‘fractional’ amounts, and so some of your investment could end up unable to be invested.
What we say in the FAQs is:
To invest with us, you’ll need an initial investment of at least £1,000, and a monthly contribution of £100 or more. There are a couple of reasons for these minimums. First, the investments we buy on your behalf come in ‘units’ and have a price per unit which is often quite high. We want to ensure that we can buy several units for you so that your money actually gets invested rather than just sitting around.
We also want to ensure that you are ready to invest. It might be that you don’t yet have £1,000 saved up, which is why we have other options, too. You could have a look at our 5% p.a fixed interest bonds, which you can take out with as little as £100 and your capital won’t be put at risk.
With regard to the whole market:
So, two things here:
We do plan to include a world equities tracker ETF in the near future, along with other options, so you may be able to select this. However, as it is (by definition) an equities-based ETF it may therefore be a higher risk category so it is possible that this will only be for the more adventurous investor.
The reason for a theme is not that you are ‘forced’ into adopting one, but that you get some engagement with the portfolio.
There are many different ways to select investments, but in this case we have selected ETFs built around themes so that people can understand. They are still balanced from a risk perspective, but they help new investors relate to what could be quite a diversified selection of investment products.
As we say in the blog post:
Our investment strategies are themed, so you can choose what to invest in based on your interests. Investing in something you have an interest in is a great way to feel more engaged with your investment.
While there are a great number of investment possibilities out there, we hand pick a few suitable strategies to simplify your choices, so it doesn’t feel like an overwhelming decision.
There will be more ETFs with different themes, and more general categories, in the near future. This is just the initial selection, so look out for new options popping into the app soon
In this case, the ‘boxes’ are actually headings relating to the content below. This content is rolled-up by default but contains more information if you expand it.
Based on customer feedback we agree that this ‘box heading’ looks confusing, and we are already working to improve the headings to make this clearer.
The headings are:
1. Charged by Dozens
This is where we detail the platform costs - i.e. those that are therefore NOT already included in the performance we report to you, but are after that.
These will be 0.50% percent for ALL funds … EXCEPT when the current value (calculated on a daily basis) of your investment fund is less than the amount you invested at the start. In these cases, the platform fee for that day will be 0%
Therefore, the platform fee, charged by Dozens will be either Nil or 0.50% as stated on the app.
There are no other fees or costs charged by Dozens.
2. Charged by fund manager
These charges will be taken into account in the performance that we report to you so there is no additional amount to be paid. However, in order to be transparent we tell you exactly what the fund manager charges for this particular strategy (as per the detailed documents that are also included).
These costs are calculated for you and we will show you the overall effect on the value of your holdings once all the value changes and fees are taken into account.
I trust that this is clearer now, but do feel free to ask for further clarification if I’ve missed something
Right, makes sense now. The spacing and the downward arrow just makes “Platform fee” look like the heading, with it’s contents below.
Why do you have the separate break out for transaction spread? Is this something unique to Dozens, or have you tried to pull out this stat from the underlying fund? Why not report a single OFC % for easy comparison to other funds on other platforms?