AJ Bell has announced it will launch a new, app-only investment platform, which it hopes will make investing more straightforward and accessible for retail investors.
The new service will be called Dodl by AJ Bell, and the firm will aim to launch it in the first half of 2022.
It will compete with the lowest-cost investment platforms in the market, with an annual charge of 0.15% and no commission for buying or selling investments.
Dodl will offer an individual savings account (Isa), lifetime Isa, pension, and general investment account.
Customers will be able to set up regular investments and consolidate existing ISAs and pensions onto the platform.
People will be able to pay money in to accounts via Apple and Google pay, as well as debit card payments and direct debits.
Dodl will give investors access to a simplified investment range with options to cater for the vast majority of investment risk appetites.
Dodl will feature a range of popular shares in UK listed companies, with US companies being added soon after launch.
There will also be a range of themed investments which include funds focusing on core areas such as technology, robotics, healthcare and responsible investing.
The fund range will also consist of the AJ Bell’s multi-asset funds – which cater for six different risk levels. And it will feature AJ Bell’s Responsible Growth fund – for people who want to invest with a responsible focus.
The new mobile app will sit alongside AJ Bell’s existing consumer platform AJ Bell Youinvest.
Costs
There will be a single, all-in annual charge of 0.15% of portfolio value for each investment account a Dodl customer has, with a £1 per month minimum per account.
There will be no commissions for buying or selling investments and no tax wrapper charges.
As an example, for £10,000 invested in an Isa, the Dodl charge would be £15 a year.
Customers investing in funds will also pay the annual charge of the underlying fund as normal.
AJ Bell chief executive Andy Bell said: “Investing doesn’t need to be scary. Dodl by AJ Bell is for anyone looking for a low-cost, easy-to-use investment app to help them meet their investment goals such as saving for a house deposit, holidays or retirement.
“The intuitive investment journey and streamlined investment range will appeal particularly to those that are new to investing and want a simple way to manage their investments.
“With a low annual charge of 0.15%, no trading commissions and all the main tax efficient products, Dodl will be amongst the cheapest and best value investment platforms in the market.
“Our friendly monsters will guide people through the investment process with no jargon and introduce them to an investment range that is easy to choose from and caters for the investment needs of the majority of people.”
Commenting on the launch, Boring Money chief executive Holly Mackay said: “Despite its positioning as an app for newer investors, I should think the majority of people Googling this today will be curious, affluent 40- and 50-somethings, with a relatively mainstream buy and hold portfolio.
“50 shares and 25 external funds will satisfy many people’s requirements – for 0.3% less than Hargreaves Lansdown each year.
“Subject to availability, it will also enable someone to hold a mainstream passive multi-asset fund such as Vanguard’s LifeStrategy, for a total cost of 0.37% a year.
“That’s half the price of your average robo, which arguably does a similar thing. It sounds like a really positive development to me.”
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