· The first investors on the new Dodl investing app by AJ Bell are seeking diversification with 77% of assets invested via funds, compared to just 23% in direct shares
· UK adults are choosing to invest their money with a global focus, as the most popular themed fund on Dodl is found to be ‘On top of the world’
· 34% of users are choosing an ‘adventurous’ or ‘moderately adventurous’ risk level when investing their money, while over a third (36%) would prefer a more balanced approach
· Just over half of investors (51%) are making payments via Apple Pay rather than manually inputting debit card details
Following its launch, the team behind no-nonsense investing app Dodl by AJ Bell (dodl.co.uk) have released their initial data about their users’ investing habits, finding that more than three quarters of investors (77%) are seeking more diversification via funds rather than direct shares. These funds include themed funds based on investment goals and preferred sectors, as well as AJ Bell’s funds that are focused on risk level.
Looking more closely into the most popular themed funds, those with a global focus are the most popular.
Top 5 themes chosen were found to be:
- “On top of the world”
- “All-in-one (80% shares)”
- “Across the pond”
- “All-in-one (60% shares)”
- “UK top 100”
In addition to themed funds, the AJ Bell multi-asset funds are a set of six investment portfolios, which give investors a ready-made investment option. All users have to do is choose a risk level that they feel comfortable with investing in. The most popular risk levels included balanced (36%), moderately adventurous (17%) and adventurous (17%). Only 1% of users decided to take a cautious approach with their portfolio. In addition, just over a tenth (13%) of users are choosing to invest their money responsibly via the AJ Bell Responsible Growth fund.
Dodl gives users the ability to invest in specific shares as well, with 50 of the biggest UK companies from the FTSE 350. The shares available cover companies in many categories such as STEM, travel, retail and property. The data from the app shows that the most popular shares that users are drawn towards include the likes of Rolls Royce, AJ Bell, L&G, Lloyd’s Bank and M&G.
Data analysis also delved into the investors’ methods of payment. Findings show that mobile payments and digital wallets are becoming the preferred payment option, with Apple pay and Google pay accounting for 51% of all payments, compared to 49% from manual debit card inputs*.
Emma Keywood, senior product manager at Dodl by AJ Bell, commented:
“With markets having been so volatile since we launched Dodl it is interesting to see a significant majority of new investors choosing to diversify and spread their risk by investing in funds rather than putting their faith in individual shares. The popularity of our themed funds demonstrates that finding simple ways to explain investing and making it easier to understand really appeals to people and can help them find a way into investing. Furthermore, the data we’ve collected on the method of payments shows that digital wallets are becoming increasingly popular and can make it easier for those who have yet to start their investment journey to get involved.
“We hope to continue proving to our customers and future investors that investing needn’t be scary. There are lots of different ways to invest so the key for us is presenting those options in an easy to understand way and using language that can help people identify the right option for them.”