InvestEngine is a new investment platform that invests your money for you in fully managed ready made portfolios. Find out what we thought of InvestEngine, the types of investments available and what it’s got up its sleeve for the future.
What does InvestEngine do?
InvestEngine is an investment platform commonly known as a robo-advisor. This means it builds and manages ready-made investment portfolios for you in exchange for a fee. You can choose between growth portfolios and income portfolios.
Growth portfolios have a primary goal of capital growth, which is to mean that the main goal is for the value of the stocks to rise. Any companies in these portfolios tend to reinvest their earnings into growing the company, such as through expansion, acquisitions and further research.
Income portfolios have a primary goal of providing a regular income. Any income received from investing in this type of portfolio is often paid into your nominated bank account. The amount varies depending on the dividends received from the exchange traded funds (ETFs) in your portfolio.
What products does InvestEngine offer?
You can invest in a general investment account (GIA), known as the “personal account”, an individual savings account (ISA) and a business account.
There are only ready-made portfolios on offer at the moment but InvestEngine is working on adding a do-it-yourself option if you fancy building a portfolio yourself.
InvestEngine ready made portfolios
InvestEngine’s ready made portfolios are fully managed. As with other robo-advisors like Moneyfarm and Nutmeg, your portfolio depends on your appetite to risk. It asks you a set of questions that helps the platform understand how you feel about risk to suggest a portfolio for you.
InvestEngine automatically rebalances your portfolio to ensure that it stays aligned to your investment plan. It’s investment team keeps an eye on your portfolio to make sure it remains well-positioned for the latest market conditions.
InvestEngine has a (relatively) simple fee structure.
|Fee||What’s it for?||Amount for income portfolios||Amount for growth portfolios|
|Platform fee||For building and managing your investment portfolio for you.||0.25%||0.25%|
|ETF charge||A charge for investing in exchange traded funds.||Around 0.25% per year||Around 0.15% per year|
|Market spread||The difference between the purchase price and selling price of the ETFs in your portfolio.||Around 0.07% per year||Around 0.07% per year|
|Setup fee||A fee for setting up your account||£0||£0|
|Dealing fee||The cost of buying or selling financial instruments||£0||£0|
|ISA fee||The cost of having an individual savings account (ISA) tax wrapper on your account.||£0||£0|
|Withdrawal fee||A fee to withdraw your money from your InvestEngine account||£0||£0|
The minimum amount you can deposit into your account is £100.
What does this actually mean?
A £1,000 investment will incur fees of around £5.70 with an income portfolio while the growth portfolio would cost you around £4.70 for a £1,000 investment.
A £10,000 investment will incur fees of around £57 if you’re invested in an income portfolio and around £47 for growth portfolios.
InvestEngine mobile and web apps
InvestEngine can be accessed on its website as well as with a mobile app. You can top-up within the app and see your dashboard to manage your account. It lets you see what you’re invested in and a percentage of how much of your portfolio is in each investment.
It’s also got some handy in-app calculators to help you understand how your savings could grow based on one-off investments, how much you plan to invest each month, your risk profile and timeline.
InvestEngine has a UK based support team that can be accessed via email, over the phone and with an online form.
Is InvestEngine safe?
InvestEngine is authorised and regulated by the Financial Conduct Authority (FCA) and covered by the Financial Services Compensation Scheme (FSCS). This means that if InvestEngine were to go bust, you’d be covered for up to £85,000 of your deposits.
Pros and cons of InvestEngine
- Has a current onboarding offer of £50 for new customers that register and build a portfolio with InvestEngine
- Relatively low fees compared with other robo-advisors.
- The suggested portfolio created by the risk questionnaire gives a lot of detail about the portfolio suggested.
- The non tiered fee structure could prove to be more expensive for investors with a lot of money to invest.
- The risk questionnaire uses a lot of investing jargon that might confuse newbies.
Our verdict: Is InvestEngine any good?
InvestEngine is pretty new to the investing game. It’s a fresh take on the robo-advisors we’re familiar with, like Nutmeg, Wealthify and Moneyfarm. Its set fee structure is refreshing but could prove to be expensive for anyone investing large sums (we’re talking upwards of £100,000).
It would be nice to see more about the individual portfolios and how they invest. We’d also love to see some more ethical or environmental portfolios with the rise of ESG investing.
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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