All FAQsInvesting

How much can I make if I invest?

The returns on your investments depend on:

  • How long you invest for  
  • The level of investment risk you have taken
  • How the market performs  

With OpenMoney, all of our portfolios are diversified to avoid high-risk investing. As with all investments, your capital is at risk and you may get back less than you originally invested.

Why should I have a cash safety net before saving for anything else?

A cash safety net supports you with enough money to handle unexpected costs. It could be unemployment, a broken car or poor health. Having 3 months’ worth of expenses in easy to access cash protects you in the short-term, so you can save for the long-term without compromising your wellbeing. We don’t recommend investing if you’ve not met this requirement, but instead to build up your cash savings.

How much does it cost?

At OpenMoney our total charges are 0.51% or less* per year. This includes ongoing advice, management of your investments, access to our free money management app and VAT.

* = our charges as at 20/04/2022 based on a 12 month rolling average

I work in financial services, so I’m not allowed to choose my own assets - are OpenMoney able to provide confirmation that my investment will be managed on a discretionary basis?

Yes, of course! Just get in touch with our web chat team below or send an email to

How often do OpenMoney invest?

Our Direct Debit collection dates are 1st, 8th, 15th and 22nd; this is when we take the money from your bank account. Once the clearing period ends (after 4 working days), we submit buy orders to purchase your investments.

Payments sent via Faster Payments are invested at the next available opportunity which is usually the following working day. You’ll see the purchases and investment value in your portal within four days after the trades have settled.

What does discretionary investment management mean?

It means that we’re able to make changes to your portfolio for you, without first requiring permission, so we’re free to decide. We make changes when we believe it’s for the benefit of our customers. This might mean that we change the amount you have invested in a certain type of asset, such as bonds. Alternatively, it could mean that we change a fund in your portfolio.

How do I top up my investment or change my current direct debit payments?

Investment customers can top up their current investments with one-off or monthly payments and edit existing payments in their online OpenMoney portal via ‘Manage Payments’. Before editing or setting up a new payment, we will ask you to confirm a few financial details to make sure your new payments are affordable and within your allowances.

Although we have restrictions in place to help prevent you from exceeding your allowance, it’s your responsibility to ensure that your payments remain within your allowance.

How will I know that investing is right for me?

We have specific requirements before we recommend investing with us, such as a minimum investment timeframe of at least 5 years and that you have sufficient money in accessible cash in case of an emergency. Investing should be seen as a medium – long term commitment and therefore working with these principles should help to ride out any short-term fluctuations in the value of your investment.

Where do OpenMoney invest?

We invest in assets from all over the world. We want our portfolios to be well diversified, which means we like to have shares and bonds in companies and governments from all over the globe. This means that if an event impacts one area of the world, for example an election in the US, or a natural disaster in Asia, it shouldn’t have a massive impact on your overall investment.

Is my capital at risk even with your lowest risk portfolio?

With any investment, your money (or ‘capital’) is at risk, and this applies to all our portfolios. This means that you could get less money back than you invested, depending on how the investments perform. With our lowest risk portfolio, we hold more of your investment in lower risk assets, which means it has the lowest risk of capital loss of our portfolios.

Can I pick my own investments?

Our investment committee carry our extensive research in maintaining our portfolios. As we offer a managed service, changes can only be made where the investment committee see fit. Currently our customers are unable to adjust the holdings or ‘pick and choose’ their own investments. As an advised service, we don’t recommend investing to everyone. If we believe investing is right for you, then we will advise on which of our portfolios suit your risk profile.

Do you offer an ‘ethical’ investment portfolio?

Our portfolios are invested in several mutual index funds, meaning they track global market indexes like the UK FTSE All Share and the US S&P 500. Currently we are unable to remove specific investments which may be considered unethical from these funds. Whilst this market progresses, our investment committee are in the process of exploring low cost sustainable options that we can make available to our customers.

Where can I find the past performance for OpenMoney’s portfolios?

The past performance of each of our portfolios can be found in our portfolio factsheets here. These contain useful information on the funds we use, the asset allocation and the past performance of each portfolio. Please remember that past performance provides no indication of future performance.

What is diversification?

Investment diversification is key to any investment strategy. The principle suggests that spreading your investment across a wide range of asset types will help manage the overall risk of the investment. If you’re familiar with the phrase ‘don’t put all your eggs in one basket’, this might help you to understand diversification. Our investments are globally diversified so an investor in one of our model portfolios can be invested in over 70 countries and 2,500 companies.

What determines the risk level of a portfolio?

It’s down to the asset allocation; the type and proportion of each asset class. There are several different assets that you can invest in, such as Equities (Shares) and Property, which are considered high risk in comparison to Cash and Bonds. So our low risk portfolio contains a higher proportion of Bonds than Equities, whereas our high risk portfolio has a greater weighting towards Equities than Bonds. The use of different asset classes in a portfolio aims to reduce the overall risk of the investment and provide better returns for our invested customers.

What is a portfolio?

At OpenMoney, when we say ‘portfolio’ we simply mean a collection of investments. Customers who we believe are in a position to invest are recommended one of our three model portfolios, each portfolio represents a risk level: 1 – Low Risk (Cautious), 2 – Moderate Risk (Balanced) and 3 – High Risk (Adventurous). These are created and reviewed quarterly by our investment committee.

What are mutual funds?

A mutual fund is a type of financial product that pools investors’ money together to purchase financial assets, such as Equities (Shares) and Bonds. These track the performance of its relative benchmark and requires minimal human intervention from the fund manager. As such, these funds are significantly cheaper than active funds. Our use of mutual funds is the core to our passive investment approach.

What is OpenMoney’s investment approach?

We use a passive investment strategy when managing our portfolios. We invest in passive mutual funds which track market indices; like the UK FTSE All Share and the US S&P 500.

Passive funds allow exposure to various global markets and are traditionally less costly than active funds. In the attempt to outperform their benchmarks, active fund managers levy higher costs to cover increased research and transaction costs. We believe that market performance is impossible to predict, so we don’t make changes in response to political or economic news. We make changes when we believe it is in the customer’s best interests.