Our bottom line
InvestEngine aims to help you maximise the potential returns on your investments — whether you are a novice investor, passive investor or a more experienced, hands-on kind of investor. The platform’s managed portfolio service will build a diversified portfolio for you at a risk level you’re comfortable with, without doing the intensive work of picking the investments yourself. If you are a more experienced, hands-on investor, you can opt for InvestEngine’s new DIY service that lets you create and manage your own portfolio.
The fees are low, so you keep more of any investment returns, plus you can cash in or transfer your investments at any time and at no charge.
What kind of solution is InvestEngine?
InvestEngine provides two types of investing services: managed and do-it-yourself (DIY).
The managed service lets you invest in a managed ETF portfolio, based on investment styles that are at a risk level you are comfortable with. All you have to do is to choose whether you want to invest for income or growth, select an account type (ISA, Personal or Business account), and then complete a short questionnaire about your goals, the amount you want to invest and the level of risk you are comfortable with. The platform will then build a portfolio that corresponds to your stated needs and risk profile.
The portfolio will be managed by a highly qualified team who will also fine-tune it on a regular basis to help ensure your investments remain on track.
If you are a more experienced, and hands-on investor, then you could opt for the newly launched DIY service that lets you personally pick from a selection of over 150 ETFs covering a wide range of investment classes. With this service, you can set your investment weights to create the exact balance you want.
Remember though, if you’re ever unsure about the suitability of an investment for your own circumstances, please seek independent financial advice first.
InvestEngine’s top features
InvestEngine’s greatest feature perhaps is that it puts you in control right from the start. You get the choice of having an investment portfolio created and managed for you, or creating and managing one for yourself.
For the managed portfolio service, InvestEngine believes that diversification is the single most important factor in making your investment work harder.
And so, one of this service’s top features is that regardless of your risk appetite, you can expect to receive a robust, globally diversified portfolio consisting of different asset classes like stocks, bonds and alternatives.
That means that you could be protected in case one or more assets underperform and helps ensure that you are always in a position to potentially make gains from wherever and whenever prices go up.
You could also diversify using the DIY portfolio service which gives you access to more than 150 ETFs handpicked by their investment experts that you can mix and balance as you like to achieve diversification.
You can give your portfolio the focus you want by setting percentage weights for your selected ETFs. And with an automated buying and selling feature, you don’t have to set up individual ETF trades for each of your ETFs. You can easily buy and sell ETFs based on your target weights all in a few clicks and for free.
What’s more, the DIY portfolio service comes with a feature that helps you top up and rebalance your portfolio and bring it back in line with your target weight once again in just a few clicks.
For the managed portfolio service, another top feature is that you have the choice of investing in a stocks and shares ISA, which is a tax-free wrapper that allows you to invest up to £20,000 a year without having to pay tax on any profits made on the investment.
For anyone with an ISA elsewhere, transfers to an InvestEngine Stocks and Shares ISA just require the completion of an easy transfer form. InvestEngine will take care of the rest, with no additional transfer fees.
You also get great user visibility and control with InvestEngine for both the managed and the DIY portfolio services. The platform lets you access your account online at any time to see how your investments are doing, and conduct different transactions including adding funds or withdrawing them.
How do the fees work?
The fee structure at InvestEngine is quite clear and straightforward
For the managed portfolio service, total costs depend on whether you are investing for income or for growth.
If you are investing for income, expect to pay an annual platform fee of 0.25%, an average ETF charge of 0.27%, and ETF spread costs of 0.09%. That brings your total annual cost to a meagre 0.61%.
The fees for a growth portfolio are even lower. You’ll only pay the usual platform fee of 0.25%, an average ETF charge of 0.17% and ETF spread costs of 0.04%, which in total is 0.46%.
As an example, if you were to invest £10,000 in an InvestEngine growth portfolio, your estimated charges would be £3.83 a month or £46 a year. Investing the same amount in an InvestEngine income portfolio translates to fees of £5.08 a month, or £61 a year.
For the DIY service, there is no annual platform fee although the usual ETF charges and market spread costs will apply.
There are also no set up, dealing and withdrawal fees for both the managed and the DIY portfolio services which means that you get to keep more of any investment profits, which could also possibly translate to faster achievement of your financial goals.
You can fund or top up your account via a manual bank transfer to InvestEngine. Or you can simply set up instant transfers from your bank via Open Banking.
If you opt for the managed service, your custom ETF portfolio will be monitored and managed by an expert team on a regular basis. Rebalancing is also done if and when needed.
It’s also quite easy to stay on top of your InvestEngine account and investments. You can log into your account at any time to check performance, view investment projections, make adjustments to your portfolio, add funds and even withdraw or transfer funds.
You have the choice of doing this via InvestEngine’s relatively easy-to-navigate website or on your phone through the free app, which is available for both Android and iOS.
What are the risks?
As with all other investment products, there are no guarantees of receiving positive returns.
There is a risk of your portfolio going down meaning that you could end up with less than you invested while also having paid fees.
How accessible is InvestEngine?
Creating an account on InvestEngine is relatively easy and straightforward. They should have your account literally running in minutes.
If you opt for the managed portfolio service, all you have to do is answer a few questions on your financial situation, investment goals, time horizons and tolerance to risk.
Leave the rest to InvestEngine’s carefully crafted algorithm to select an investment style in line with your answers, and the team of experts at the firm will work hard to help maximise the potential returns on your investment. This makes it a potentially great choice for those with limited investing experience.
For the DIY service, since you are in charge of creating your own portfolio, all you need is to deposit money and as soon as that is done, you can begin the process of building your own portfolio based on your investing strategy and needs.
Service and support
InvestEngine has a support team that is available Monday – Friday, 9.00 a.m. to 5.00 p.m. via phone, email or chat.
There’s also a comprehensive FAQ section on the platform’s website where you can get quick, frank answers on some of the most commonly asked questions about the platform’s operations, products and terms of engagement.
Is InvestEngine a good choice for you?
InvestEngine is a breath of fresh air in the current investing solutions space. It’s an exciting option worth considering not only for passive investors, or novice investors, who may lack the time or knowledge to pick and manage their own investments, but also for more experienced investors who prefer a more hands-on approach.
The fees are straightforward and amongst the lowest compared to its rivals. Plus through its mobile and online platform, you get plenty of visibility and control on your investments including a chance to get out at any time without incurring an exit fee.
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