Wombat Investing Review
In 2022, Wombat earned the prestigious title of “Investment Tech of the Year” at the UK Fintech Awards. The Wombat investing app is designed to help you save, invest, and increase your wealth. Effectively, it functions as an automated investment app, enabling you to purchase fractional shares, utilize round-up features, and invest in exchange-traded funds.
I’ve personally checked out the Wombat App and gone through all the features and products they offer for this independent Wombat app review.
Capital at risk. Tax treatment depends on individual circumstances and is subject to change. T&Cs apply to the £10 offer and cashback.
What Makes Wombat Award Winning
Wombat Invest, a Fintech startup, is a thematic micro-investment application that bears resemblance to robo-investment apps. Its primary focus is to cater to new and youthful investors by making the investment process relatable and aligning it with each user’s unique personality.
Established in 2019 within the United Kingdom, the platform has already garnered a user base of more than 250,000 individuals. It provides a cost-effective avenue for those seeking a simplified method to enter the world of investing.
Wombat Thematic Investing
Cost Effective
Wombat Invest is swiftly emerging as one of the UK’s most rapidly expanding investment applications. Its primary goal is to make investing cost-effective and within reach for individuals who are embarking on their investment journey.
Wombat also allows investors to initiate their investment journey with as little as £10, choosing from a range of themes based on their interests and values. These themes provide an avenue for investors to align their investments with their personal beliefs and preferences.
Branded ETF-Themed Funds
Wombat offers a diverse array of low-cost account options, granting access to more than 20 exchange-traded funds and a variety of US, UK, and EU stocks. Notable features include the ability to invest in fractional shares, automated investment capabilities, round-up functionalities, and daily buy/sell order execution.
Investors using Wombat can opt to invest in a multitude of companies through 29 branded ETF-themed funds. Moreover, they have the flexibility to construct personalized portfolios and invest in fractional shares of both UK and US companies.
The Wombat investing app boasts an impressive App Store rating of 4.6, reflecting its sleek and user-friendly interface. It serves as an excellent entry point for novice investors, providing them with a straightforward, intuitive platform characterized by a contemporary and refreshing design.
Among the app’s standout features, the auto-invest functionality stands out. It empowers users to set Wombat to automatically invest a predetermined amount on their behalf every month. This feature promotes sound investing habits without demanding any significant time commitment from the user.
Wombat investing presents a diverse range of investment opportunities through 29 branded ETF-themed funds. Additionally, investors have the flexibility to construct custom portfolios and delve into fractional shares of companies in both the UK and the USA.
These themed funds offer a starting point for investment as low as £10, allowing you to choose themes based on your personal interests and convictions. Each theme is associated with a risk level, illustrated using chili symbols, enabling you to create a well-balanced investment strategy aligned with your risk tolerance.
Furthermore, Wombat offers impact investing-themed funds, enabling investors to support companies making a positive impact on the world. These funds encompass brands that promote clean energy and medical cannabis, providing seven portfolio options for ethical investing:
- The Future of Food
- Medical Cannabis
- The Electric Car Revolution
- The Green Machine
- The Goodies
- The Innovator
- Women in Power
Wombat Offers Fractional Investing:
Fractional investing is another feature allowing you to purchase portions of shares, providing access to well-known brands like Netflix, Microsoft, Facebook, Amazon, and Apple, among others. All fractional shares available on Wombat are UK or US shares, facilitating the creation of diversified portfolios.
Wombat’s round-up feature connects to your bank account, rounding up your purchases to the nearest pound and channeling the extra money into your investment fund, promoting effortless savings and investment. While this concept isn’t entirely novel, it remains a convenient addition.
Auto-Invest is a revolutionary feature that automates monthly investments, fostering a habit of consistent investing and enabling a set-and-forget approach.
Wombat Account Plans:
Wombat offers three plans tied to your chosen account option:
- Instant GIA (General Investment Account): Free of charge with a 0.65% FX fee.
- Standard ISA (Individual Savings Account): £1 per month with a 0.10% annual platform fee, 0.75% FX fees on foreign shares, and 0.07-0.75% annual fund manager fee for ETFs.
- Standard GIA: £1 per month with a 0.10% annual platform fee, 0.75% FX fees on foreign shares, and 0.07-0.75% annual fund manager fee for ETFs.
- Junior ISA: £1 per month with a 0.10% annual platform fee, 0.75% FX fees on foreign shares, and 0.07-0.75% annual fund manager fee for ETFs.
Note that the £1 monthly fee for the Standard ISA, Junior ISA, and GIA can impact small investment pots, especially with Wombat’s low £10 entry point.
The General Investment Account, priced at £1 per month, provides access to US, UK, and EU stocks, fractional shares, over 20 exchange-traded funds, and features like auto-investing, round-ups, and buy/sell orders.
The new Wombat Instant GIA offers unlimited commission-free trading for US stocks, although it excludes access to Wombat’s ETFs. It includes:
- Commission-free trading (other fees apply)
- 500+ US stocks and shares
- Fractional shares starting at £10
- 0.2% cashback on buys (T&Cs apply)
Wombat Stocks & Shares ISA
Wombat’s Stocks and Shares ISA, priced at £1 per month, encompasses US, UK, and EU stocks, fractional shares, ETFs, auto-invest, round-ups, buy/sell orders, and tax-free gains.
The recently introduced Junior ISA, available since July 2023, offers unlimited commission-free trading, 30+ Themed Funds, 4+ global shares, and automated investing and rounding-up features, underscoring Wombat’s commitment to ongoing improvement.
Wombat does not currently offer a SIPP account but has hinted at future additions. Additionally, they are working on a Junior App for those under 18 to explore investments and Wombat Gift, which will allow investments as gifts.
While Wombat’s mobile app is well-received by new and young investors for its user-friendliness, it lacks a desktop option. Nevertheless, this aligns with Wombat’s focus on young and novice investors comfortable with mobile app-based investing.
Wombat provides a clean, innovative, and user-friendly platform, ideal for quick navigation and seamless investment placement.
What Makes Wombat Invest Stand Out?
Wombat stands out as one of the most cost-effective providers in the market, offering a straightforward fee structure, cash-back opportunities, an appealing welcome bonus, and the chance to earn extra income through referrals.
The platform provides valuable charting tools, delivering insights into your portfolio size and offering useful projections for your future investments. Additionally, Wombat boasts an extensive Learning Hub filled with informative articles designed to enhance your investment knowledge. This resource is further enhanced by a convenient search feature, enabling quick navigation to the specific article you seek.
Once you’ve chosen an investment theme aligned with your interests and convictions, accessing more detailed information is a breeze within the fund’s documents section. Here, you can find valuable insights such as risk and reward profiles, fees, objectives and investment policies, historical performance data, and other practical information.