Need advice? Perhaps ask the robots

The latest “robo-advice” product to come to the UK is waiving fees for customers investing less than £10,000. Sarah Moore investigates.

In an effort to stand out from the competition, the latest "robo-advice" product to come to the UK is waiving fees for customers investing less than £10,000 (and also for those investing more than £1m). Robo-advisers, online investment sites that give tailored advice to investors typically those with smaller savings pots are becoming increasingly popular as investors search for ways to cut the high costs of active wealth management.

MoneyFarm (MoneyFarm.com), an Italian start-up, will offer six different portfolios geared towards different risk appetites, which are established through algorithms and risk profiling. Investments over the £10,000 threshold will be charged at 0.6% a year, falling to 0.4% on amounts over £100,000 and 0% on amounts over £1m. Asset allocation will be overseen by the firm's investment committee and advisory board. By expanding into the UK market, MoneyFarm is the first robo-adviser to operate in more than one country, and has plans to extend further into Europe.

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Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.