Investors have gone green in second lockdown, says Plum

By Aisling Finn on Tuesday 26 January 2021

Savings and Investment

The average age of a Plum investor is also trending down to 31 at the end of 2020 from 33 earlier on in the year.

Investors have gone green in second lockdown, says Plum
Image source: Victor Trokoudes/Plum

New data from money management app Plum show that investors on its platform have shifted to ethical investing during the second national lockdown.

Plum’s ‘Clean and Green’ fund saw new investors put aside 8.9 per cent of their funds in November and December, compared to just 5.5 per cent in March and April of last year, as investors are looking for greener alternatives. 

The average age of a Plum investor also went down from 33 to 31 years old between March and December, as investing is quickly becoming an attractive option to help young people grow their money.

Plum’s new customers are also embracing riskier assets and turning away from bonds, with more customers choosing to invest in the ‘Balanced Bundle’, which consists of 60 per cent shares and 40 per cent bonds, and shunning the more conservative ‘Slow and Steady’ fund, which is 20 per cent shares and 80 per cent bonds.

The ‘Balanced Bundle’ equated for roughly 10 per cent of new investors’ allocation, up from 6.7 per cent in the first lockdown.

Victor Trokoudes, CEO & co-founder of Plum, said: “The investment boom is continuing at pace. We’re seeing younger customers starting to use our innovative platform and they’re investing more on average. But their behaviour shows us that we’re in a very different landscape now from the early days of the pandemic.”

“It looks like our new customers are increasingly focused on stability and are investing for the long-term. They’re making sensible choices with their fund allocation now that the end of the pandemic may be in sight.”

To capitalise on the ethical investing movement, Trokoudes added that Plum would be launching new ESG finds and investment options later on this year.

As well as seeing a jump in environmentally-friendly investing, it looks like investors are turning away from tech.

Following the tech investing boom in the Spring of last year, Plum’s ‘Tech Giants’ fund shrunk to 9.9 per cent in November, down from 11 per cent in March.

During the second lockdown, the allocation in ‘European Essentials’, Plum’s European equities fund, more than doubled, quickly becoming one of the most popular funds among new Plum customers. 

The fintech also experienced a 50 per cent increase in November/December from March/April in the average amount being invested per customer, something Plum attributes to having more disposable income during lockdown.

Plum experienced a bumper 2020, seeing a 180 per cent increase in investors between January and September and deposits increasing fivefold between January and June of this year. 

The fintech has also launched a premium service for its customers, offering users enhanced cashback and reward features in collaboration with New York-based fintech Button.

As a result of its stellar year, Plum also made its first foray abroad, launching in Ireland in mid-November 2020.

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