September is a month of firsts for many; the first day at ‘big school’ and the first crunchy leaves on the ground. While the days have been getting shorter, we’ve worked as hard as ever to make sure your app is better than ever.
There were a lot of headlines throughout September so we’ve set out what they mean for your investments. If you only have 30 seconds, here's your TL;DR:
- ☝️Interest rates continue to go up and are now 2.25%. This is being done to cool down the economy. In the short term, there could be some negative impacts to your investments, however, you’re in the best position to minimise the impacts by investing for the long term in a range of companies through shares and bonds.
- 📉The pound took a big drop and went down to $1.03. This was following the UK’s mini-budget where a range of controversial tax cuts were set out. Over the long term, currency movements usually balance out. In the short term, they can cause extra volatility for your investments. This is why the core funds on Nosso are “hedged”, meaning that they’re managed to cancel out the effect of the pound going down and up against the dollar.
Here's what this month’s news means for your investments
With inflation at an all-time high, interest rates have risen and are expected to continue to rise until at least the middle of 2023. Higher interest rates mean borrowing becomes more expensive. The increases are a way to try and cool down the economy and stop things such as fuel and food from rising too fast. At the same time, we’ve also had the UK pound drop in value against the US dollar. In the short term, both of these can have a negative effect on your investments.
There are ways to minimise the risk of interest rates rising and a weak pound impacting your investments. First, spreading your investment eggs across a range of different companies helps beat the impact of interest rates on your investments in long run. The second is “hedging” against currency movements. This means the value of the UK pound going up or down won’t impact your investments in the short term.
The funds on Nosso are managed to do both of these — investing in companies across the globe and hedging currencies, focusing on long-term growth 😎🌱
Gift Cards have landed
Just in time for Halloween🎃
How do Gift Cards work exactly? When you share your link, your loved ones can now pick a gift card to live alongside their contribution.
We’ve created a few designs to can choose from and will be adding more over time.