No investing experience necessary

Learn more about how we invest

Where is my money invested?

Your money is invested into mainly passive investment funds, such as Exchange Traded Funds [ETFs] and Mutual funds 

Who decides what goes into my Plan?

Our experts have pre-selected a range of passive investment funds, which we use to build your Wealthify Personal Investment Plan. The mix of funds in your plan will depend on your attitude to risk – if you have a low risk appetite, your Plan will contain a higher percentage of low-risk funds. Higher-risk Plans will include more high-risk investments. Since financial markets are always changing, we might make small periodic changes to the mix of funds in your plan to make sure it still matches your risk profile and goals.

What's passive investing?

Why invest in one company, when you can invest in them all? That’s the essence of passive investing. Instead of putting all your eggs in one basket and relying on one particular company to perform well, you spread your money across all of them, so that you benefit from their collective strength. To do this, you need funds like ETFs and Mutual Funds (known as passive investment vehicles). These let your money track an index like the FTSE 100, which is composed of the 100 largest companies listed on the London Stock Exchange – companies like Royal Dutch Shell, BT Group and Unilever.

Passive investing is generally accepted as a more effective long-term strategy than the alternative, active investing, where fund managers try to pick the stocks they think will do best. The Dow S&P Indices show that as few as 14% of active fund managers actually manage to beat the market each year, when looked at over a long time period.

What assets will I have in my plan?

Your plan will consist of a mix of assets, such as shares, government bonds, corporate bonds, cash, property, private equity, commodities and hedge funds. You can find out more about all of these in the Glossary. The exact combination will depend on the preferences you give us when you apply, and will change over time.

Do I own the underlying assets in my investment plan?

Yes, you will always own the underlying funds in your Wealthify Plan. There is no master fund into which your money is invested, as you’ll find with some services. This is an advantage for you, as it means you can see exactly what we are buying and selling for your Plan. We list the assets you own in the Plan detail screen, found in your dashboard and we send you a transaction receipt for every purchase and sale – so you always know where your money is.

Can I choose my own investments?

No, that’s what we’re here for. You only need to tell us your investment style and how much you want to invest, and we do everything else. Our investment team have pre-selected a range of passive funds, and programmed our automated investment system with algorithms (mathematical formulas) that build your Plan based on what you tell us your goals are.

Why is there cash in my investments?

Cash is a type of investment (or asset) itself. It’s a low risk asset, so the return on cash is typically low, but it’s a good way to help protect investors from losses if there’s an indication that markets might lose value. The amount of cash and cash equivalent assets in your plan will depend on the level of risk you choose and will be adjusted periodically in response to market movements.

What returns am I likely to get and are they guaranteed?

When you build your Wealthify Personal Investment Plan, we give you a calculation of what it could be worth at the end of your investment timeline. The calculation uses past benchmark data (see explanation below) to predict future performance, so you should only take it as a guide, not a guarantee. With investing, there are no guaranteed returns and you should remember that the exact value of your plan could be more or less than you expect.