Micro investing has made it possible for people to dip their toes into the world of investment without the need for large sums of money or extensive financial knowledge. The concept involves using an app that links to a user’s debit or credit card, rounding up every purchase and automatically investing the spare change into a diversified portfolio of stocks and bonds. This model has gained popularity due to its accessibility and convenience, allowing users to build their wealth by simply turning everyday spending into a savings strategy.

The amount invested may seem tiny, but over time it can add up, particularly when compound interest takes effect. These’micro investments’ can also teach people valuable financial habits. Hopefully, they’ll eventually lead to more confident people taking the plunge into larger savings and investments. URL theinvestorscentre.co.uk

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Most micro investing apps use Exchange Traded Funds (ETFs), which are baskets of securities that track a certain index, economy or sector. They also offer fractional share purchases, allowing users to acquire part of a larger stock or ETF. Some even have’set it and forget it’ features, meaning the investments can be automated over time.

These apps are capturing the interest of the millennial generation, with socially responsible and green investments high on many users’ lists of priorities. However, some have been criticised for not being transparent enough about their fees, with some of them charging as much as 1.5% in management charges. This has led to calls for these platforms to be more regulated.