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Wealthify Review

Wealthify Review

Our verdict: Wealthify offers a simple to use investment platform with a good range of features for the novice investor. Experienced investors may find it better to look elsewhere.

Our rating
4.4/5

What is Wealthify?

Based in Cardiff, Wealthify is a relatively new robo-advisor that lets you invest as little as £1. To keep a user’s investment management costs to a minimum, they focus on investing in ETFs similar to other robo-advisers (such as Nutmeg, Wealthsimple and Moneyfarm).

Aviva recently bought a majority stake, so it has a big household name as a shareholder which is always a good sign of stability for the business as a whole.

Wealthify has a range of investment options you can choose from such as:

  • Investment ISA – You can choose between a Cash ISA, Investment ISA, Innovative Finance ISA, or a Lifetime ISA and can invest or save up to £20,000 tax-efficiently each year.
  • General Investment – This will be the best option if you have already exhausted your ISA quota. 
  • Junior ISA – If you want to invest enough for your child’s future, the Junior ISA is an excellent choice. It can be an effective option to save up to £4,368 tax-free for the future of your child.
  • Personal Pension – This, obviously, is a plan for your long term goals. You can either supplement your regular pension or transfer your existing funds for a better yield.
 

How does Wealthify work?

Investors are asked about their goal (they can select from a list, or choose freely), how much they want to invest upfront, how long for and whether they want to invest monthly. There are five different investment portfolios spread around the world and amongst different sorts of investments – you don’t pick your own funds and shares.

How does Wealthify perform?

All of the figures below are Wealthify’s simulated 2019 performance figures. They are “simulated” because they’re based on the performance of a model that mirrors the decisions Wealthify made for customers’ plans. All simulated figures assume that the account size is over £500 and that a fee of 0.60% has been taken as well as fund costs.

If you want to see the performance for other years, you can see these on Wealthify’s website.

Remember that past performance is not a reliable indicator of future results.

Wealthify ethical plan performance

Plan – based on risk appetite2019 simulated performance
Cautious8.10%
Tentative9.86%
Confident11.88%
Ambitious14.15%
Adventurous16.74%

 

Wealthify original plan performance

Plan – based on risk appetite2019 simulated performance
Cautious6.43%
Tentative9.37%
Confident11.96%
Ambitious14.75%
Adventurous17.14%

 

How much does Wealthify cost?

Wealthify has tried to make their fee structure nice and simple by splitting them into two costs; the Wealthify fee and the average investment fund cost:

The Wealthify Fee

This is Wealthify’s cut and is fairly competitive when compare it to other Roboadvisors. They charge a straight 0.60% fee that doesn’t change whether you’re investing £1 or £10,000.

Average Investment Costs

This is the fund fees – the cost of investing in a certain fund – that Wealthify has no real control over although they do mention on their website that they specifically look for funds with good value here.

 

How does Wealthify compare to others?

In terms of performance; most of the roboadvisors within our test set perform similarlyWhen we compare Wealthify’s fees to Moneyfarm, for example,  you’ll find that once you’ve hit the 10k mark you should really be starting to shop around, even if you are sticking with a Robo-advisor service as there are much more competitive fees out there.

 

Our verdict

Is Wealthify worth looking at? Yes, we think so especially for beginners.

Wealthify is perfect for those that are new to investing or those people who would rather avoid the hassle of picking specific shares and funds, so long as they could manage the risk. The app lets you get started with any amount of money and the recent addition of regular direct debits makes it even easier for novices to begin to build great investing habits.

More experience investors may find it too limiting, especially in terms of the lack of controls. If you’re comfortable with getting your hands dirty; we would recommend checking our Interactive Investors or Hargreaves Lansdown as alternatives.

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