Investing: Which Apps Offer the Most for Beginners?

'Robo-adviser' platforms use technology to help manage your money, but how do they stack up? Holly Mead looks at the most popular ones

- Holly Mead

Rachel Reeves and her government colleagues are keen to get more Britons investing in the stock market. She said recently that a lot of money is being put into cash savings accounts "when it could be invested in equities, in stock markets, and earn a better return".

The good news is that the rise of DIY tools and mobile apps means it is now easier than ever to get investing. However, the vast array of options can make it daunting to know where to start.

For new investors who don't have the time or confidence to manage a portfolio, "robo-advisers" can be a good option. They might sound like something out of a sci-fi movie but are basically online investment platforms that use technology to help automate the process. Most are app-based and typically offer a range of ready-made investment portfolios tailored to people's individual preferences.

You usually fill in a short questionnaire to determine your goals, how long you want to invest for, and how much risk you want to take.

Typically, the longer you are investing for, the more risk you can afford to take. But you need to factor in your personal attitude to risk, too. Stocks and shares have historically delivered better returns than savings accounts, but there is also a chance you could lose money, and there will be ups and downs along the way, so you need to feel comfortable about this before taking the leap.

The ready-made portfolios typically invest in a selection of so-called exchange-traded funds (ETFs). These are low-cost funds that track a chosen index such as a UK or US stock market, government bonds (such as UK gilts or US Treasury bills) or the price of a commodity such as gold.

The apps put a selection of these funds together to create a balanced portfolio, which spreads your money across different assets.

So which of the apps – if any – is right for you? We looked at some of the most popular ones to see how they stack up.

Nutmeg